b. In-Charge Ltd is a multinational mining group which involved in different operations. You havebeen appointed as Auditor to express your opinion on the drafted financial statements for the yearended 31* May, 2019. The draft financial statements for the year ended 31 March 2019 show thefollowing:Income statement Extracts2019 (draft)GH¢millionCost of sales (i)Operating expenses (ii)(10.50)(15.00)Statement of Financial Position extractsFixed Assets (ii) & (iii)20.00Additional InformationYou inquired from management and the following were revealed to you.i.Cost of sales includes purchase of furniture costing GH¢ 500,000 during the yearii.Operating expenses included the payment for next year's electricity bills amountingGH¢ 300,000ii.Some of the fixed assets presented in the financial statement were acquired 15 years ago.RequiredAs an auditor of In-charge Ltd, consider the use of assertion level with regards to theinformation above to obtain audit evidence by paying attention to footnotes (i) to (iii).

Cost of sales includes the purchase of furniture cost GH 500,000 during the year. Correctness,…

Answered: b. In-Charge Ltd is a multinational…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Based on the Republic Bank TT, an investment holding company, answer the following questions below using the following link below for help. Provide a detail explanation and examples to the answers. https://www.republictt.com/pdfs/annual- reports/RFHL-Annual-Report-2022.pdf 1. Assess the company's working capital position by analyzing its current assets and liabilities using common methods and measures( using the figures in the financial statements) 2. Evaluate the efficiency of the company's working capital management strategies, including inventory management, accounts receivable, and accounts payable( using figures from the financial statements) 3. Based on the assessment and evaluation above, provide ten recommendations for improving the company's working capital management practices.
Calculate the following ratios from the income statement and balance sheet all are required 1-Payables Turnover 2-Debt-Equity Ratio 3-Debt Ratio 4-Total Asset Turnover 5-Fixed Asset Turnover Statement of financial positionas at 31 December 2018 2018 2017 Note RO RO ASSETS Non-current assets Property, plant and equipment 14 8,407,572 9,300,442 Deferred tax assets 12 40,977 18,550 8,448,549 9,318,992 Current assets Inventories 15 430,885 422,421 Trade and other receivables 16 1,129,440 1,235,724 Due from related parties 24 70,300 73,050 Cash and bank balances 17 6,856,734 6,439,709 Total current assets 8,487,359 8,170,904 Total assets 16,935,908 17,489,896 EQUITY…
Determine the following as a result of your audit:a. The proposed adjusting journal entries for the year ended December 31, 2022 includes a net debit (credit) to retained earnings of? b. The proposed adjusting journal entries for the year ended December 31, 2022 includes a net debit (credit) to accumulated depreciation of?
White Ltd commenced business on 1 July 2017. An extract of the statement of financial position of White Ltd for the year ending 30 June 2019 and 2020 are shown below: Assets Cash Accounts receivable Allowance for doubtful debt 2019 $ 3,800 15,000 (600) 2020 $ 5,000 18,000 (880) Dividend receivable 800 380 Inventory Prepaid insurance Interest receivable Machinery Accumulated depreciation-machinery 13,000 3,800 700 14,000 2,000 500 40,000 (12,000) 35,000 500,000 (150,000) 40,000 (4,000) 25,000 500,000 (125,000) Land Building Accumulated depreciation- building Deferred tax asset 600 Liabilities Accounts payable Current tax liability Provision for Warranty Interest payable Debentures Dividend payable Deferred tax liability 2,000 350 600 3,000 400 700 900 1,200 15,000 5,000 200 17,000 5,000 Additional information: 1. Depreciation for accounting and tax purposes are 20% and 25% straight-line method, respectively. 2. Depreciation for building is non-deductible for tax purpose. 3. Bad debt…
Calculate the liquidity ratios and current ratios?
Additionally, the company informed the following: Net income = $156,042 Sales = $4,063,589 Determine the following values for the company: Total asset turnover ratio _____________ Fixed asset turnover ratio _____________
QUESTION : " The balance sheet of Lara Ltd are as follows: 31/12/2019 Non-Current Assets RM RM RM Equipment (Cost) Less: Accumulated depreciation 28,500 (11,450) 17,050 Current Assets 18,570 Inventory Account receivable 8,470 Less: Provision doubtful debts (420) 8,050 4,060 30,680 Cash and bank Total Assets Current Liabilities Account Payable 4,140 Non-Current Liabilities Loan 10,000 Total Liabilities (14,140) 16,540 Net Assets 33,590 Capital Opening Add: Net profit 35,760 10,240 Cash introduced Less: Drawing Total Capital (12,410) 33,590 31/12/2020 Non-Current Assets RM RM RM Equipment (Cost) Less: Accumulated depreciation 26,100 (13,010) 13,090 Current Assets 16,250 Inventory Account receivable 14,190 Less: Provision doubtful debts (800) 13,390 3,700 33,340 Cash and bank Total Assets Current Liabilities Account Payable 5,730 Non-Current Liabilities Loan 4,000 23,610 36,700 Total Liabilities (9,730) Net Assets
a
Company A's balance sheet and income statement for the fiscal year ending 2021 show the following: - Net Income: $15,000,000 - Total Assets: $75,000,000 - Total Revenue: $200,000,000 - Net Revenue: $50,000,000 You are the associate auditor on this client. Your senior auditor tells you that for Company A, 1.5% is the materiality judgement. Based on the appropriate benchmark identified in Question #1, determine the planning materiality. Show your work. Your work should look like: BENCHMARK AMOUNT x MATERIALITY JUDGEMENT = PLANNING MATERIALITY
1. Evaluation of the company financial statement.
Proper descriptive solution of both (a) and (b)
GALLAGHER CORPORATION Income Statement For the Year Ending December 31, 2021 Sales revenue 950,000 Less: Cost of Goods Sold 600,000 Gross Profit 350,000 Less Operating Expenses 250,000 100,000 Income from Operations Other revenues and expenses 15,000 (3,000) Gain on sale of investments Loss on sale of equipment 12,000 Income before taxes 112,000 Income taxes 45,000 Net Income $ 67,000 Additional Information 1. Equipment costing $10,000 was sold and was 60% depreciated. New equipment was also purchased during the year 2. Cash dividends were declared and paid. 3. Common stock was exchanged for Land. 4. Debt investments costing $35,000 were sold during the year. New debt investment were purchased during the year for $5,000. 5. Accounts receivable are shown net of the allowance for doubtful accounts, because there were no account write-offs during the year. 6. Operating expenses include: Depreciation Expense, $21,000, Amortization Expense, and Interest Expense, $3,300 Instructions: 1.…

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