The impact on assets and liabilities in terms of absolute dollar impact and percentage change if the company makes the most conservative choices. Given information: For the year 2016, the balance sheet of the company is given, whose ending balance is $177,100. The CFO of the company must make some adjustments before finalizing the financial statements. The adjustment of bad debts will vary between $1,000 and $3,000. The adjustment of inventory will vary between $2,500 and $3,750. The adjustment of impairment loss on PPE will vary between $0 and $5,000. The adjustment of impairment loss on noncurrent investment will vary between $250 and $750. The adjustment for litigation expense will vary between $2,000 and $10,000. The adjustment of deferred tax asset will vary between $0 and $5,000. Adjustment of unearned revenue will vary between $0 and $5,000.
The impact on assets and liabilities in terms of absolute dollar impact and percentage change if the company makes the most conservative choices. Given information: For the year 2016, the balance sheet of the company is given, whose ending balance is $177,100. The CFO of the company must make some adjustments before finalizing the financial statements. The adjustment of bad debts will vary between $1,000 and $3,000. The adjustment of inventory will vary between $2,500 and $3,750. The adjustment of impairment loss on PPE will vary between $0 and $5,000. The adjustment of impairment loss on noncurrent investment will vary between $250 and $750. The adjustment for litigation expense will vary between $2,000 and $10,000. The adjustment of deferred tax asset will vary between $0 and $5,000. Adjustment of unearned revenue will vary between $0 and $5,000.
Definition Definition Items on the balance sheet that are created when the tax paid is more than tax considered on the income statement. Deferred tax assets result from overpayment and advance payment of taxes. They are recorded on the assets side of the balance sheet. A deferred tax asset results in the reduction of a future tax payment and is beneficial to the company. It arises when the profit as per tax laws is more than the profit as per books of accounts.
Chapter 6, Problem 1JC
a.
To determine
The impact on assets and liabilities in terms of absolute dollar impact and percentage change if the company makes the most conservative choices.
Given information:
For the year 2016, the balance sheet of the company is given, whose ending balance is $177,100. The CFO of the company must make some adjustments before finalizing the financial statements. The adjustment of bad debts will vary between $1,000 and $3,000. The adjustment of inventory will vary between $2,500 and $3,750. The adjustment of impairment loss on PPE will vary between $0 and $5,000. The adjustment of impairment loss on noncurrent investment will vary between $250 and $750. The adjustment for litigation expense will vary between $2,000 and $10,000. The adjustment of deferred tax asset will vary between $0 and $5,000. Adjustment of unearned revenue will vary between $0 and $5,000.
b.
To determine
The impact on assets and liabilities in terms of absolute dollar impact and percentage change if the company makes the least conservative choices.
c.
To determine
The impact on the current ratio and debt to equity ratio of the given adjustments in most and least conservative choices.
d.
To determine
To explain: Whether management will take care about the choices related to given adjustments.
John Appraisals is appraising a commercial office building for refinancing. The company is using the expected future revenue method of determining the value of the building today. Assume the building is fully leased and expected to remain that way. Annual rental revenue is $197,000 per year. The expected life of the building is 20 years. Assuming an annual return of 20%, what is the current value of the office building?
What is the amount of current liabilities?
Kindly help me with this question general Accounting