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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You are now in the completion stage of your audit of the financial statements of Endgame Inc. for the period ended December 31, 2021. In relation to this, you reviewed relevant subsequent events up to April 15, 2022, the date financial statements were approved for issuance by Endgame Inc.'s Board of Directors. The following information are deemed relevant as a result of your review: A The company has a 10%, P2 million Notes Payable due on March 31, 2024. A debt covenant requires Endgame Inc. to maintain current assets at least equal to 150% of its current liabilities. On December 31, 2021, however, Endgame Inc. is in violation of this covenant. On December 31, 2021, Endgame. obtained a grace period for another year, that is up to December 31, 2022, from Avenger Bank, having convinced the bank that the company's normal current ratio of 2:1 will be reestablished by the end of the year. B. The company has another P5 million, 5-year, non-cancelable 13% bonds issued at face value on March…
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Calculate the liquidity ratios and current ratios?
Prepare and Interpret a complete ratio analysis for the years 2019 & 2020 operations using the following ratios: Current Ratio Total Asset Turnover Debt Ratio Operating Profit Margin Net Profit Margin Return on Assets Return on Equity Inventory Turnover Summarize your findings and make recommendations
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Splish Brothers Limited had the following statement of financial position for the current year, 2023: Current assets Investments Property, plant, and equipment Intangible assets Other assets SPLISH BROTHERS LIMITED Statement of Financial Position December 31, 2023 1. 2. $125,020 80,840 199,280 30,080 35,720 $470,940 Current liabilities Long-term liabilities Shareholders' equity $91,180 159,800 219,960 The following additional information is available and provides information regarding errors in classification which need to be corrected: to $470,940 Current Assets include the following: bank account with an overdraft balance of $14,100; inventory with a FIFO cost of $81,780 and a net realizable value of $79,900; accounts receivable of $62,040 less allowance for expected credit losses of $2,820. Investments include the following: a mortgage receivable from parent company $56,400, due in 2028; FV-NI investments held for trading with a cost of $9,400 and a fair value of $11,280; FV-OCI…
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