Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN: 9781285190907
Author: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher: Cengage Learning
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Chapter 6, Problem 21PC
a.
To determine
Discuss the way in which Corporation I would treat its restructuring charges in the assessment of current profitability and the prediction of future earnings.
b.
To determine
Discuss the reason for the balance of the “accrued restructuring” is limited to employee-related costs.
c.
To determine
Describe the effect on net income of each inventory in the “accrued restructuring balance” account reconciliation.
d.
To determine
Discuss the way in which Country U GAAP and IFRS differ on the rules used to compute the restructuring charge.
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In its most recent annual report, Sunrise Enterprises reported current assets of $1,090,000 and current liabilities of $602,000.Required:Determine for each of the following transactions whether the current ratio, and each of its twocomponents, for Sunrise will increase, decrease, or have no change: (1) sold long-term assets forcash, (2) accrued severance pay for terminated employees, (3) wrote down the carrying value ofcertain inventory items that were deemed to be obsolete, and (4) acquired new inventory by signingan 18-month promissory note (the supplier was not willing to provide normal credit terms).
From the following particulars prepare a claim for loss of profits under the Consequential Loss Policy.
Date of Fire:
June 30, 2013
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Particulars
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Standing charges for the accounting year ending March 31, 2013
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Chapter 6 Solutions
Financial Reporting, Financial Statement Analysis and Valuation
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