Loose-leaf For Auditing & Assurance Services: A Systematic Approach
11th Edition
ISBN: 9781260687637
Author: William F Messier Jr, Steven M Glover Associate Professor, Douglas F Prawitt Associate Professor
Publisher: McGraw-Hill Education
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Chapter 8, Problem 8.27P
To determine
Concept Introduction:
Audit sampling: sampling is the method of selecting few items to check from the entire population under examination. Auditors apply sampling method while performing their
the
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3-7. (Working with an income statement and balance sheet) Prepare a balance sheet and
income statement for Kronlokken Company from the following scrambled list of
items.
a. Prepare a common-sized income statement and a common-sized balance
sheet. Interpret your findings.
Depreciation expense
$66,000
Cash
225,000
Long-term debt
334,000
Sales
573,000
Accounts payable
102,000
General and administrative expense
79,000
Buildings and equipment
895,000
Notes payable
75,000
Accounts receivable
153,000
Interest expense
4,750
Accrued expenses
7,900
Common stock
289,000
Cost of goods sold
297,000
Inventory
99,300
Taxes
50,500
Accumulated depreciation
263,000
Prepaid expenses
14,500
Taxes payable
53,000
Retained earnings
262,900
||
x3-3. (Preparing an income statement) Prepare an income statement and a common-
sized income statement from the following information.
MyLab
Sales
Cost of goods sold
General and administrative expenses
Depreciation expenses
Interest expense
Income taxes
$525,000
200,000
62,000
8,000
12,000
97,200
3-9. (Working with a statement of cash flows) Given the following information, prepare LO3
a statement of cash flows.
Increase in accounts receivable
Increase in inventories
Operating income
Interest expense
Increase in accounts payable
Dividends
$25
30
75
25
25
15
20
Increase in net fixed assets
23
Depreciation expense
Income taxes
12
17
Beginning cash
20
Increase in common stock
Chapter 8 Solutions
Loose-leaf For Auditing & Assurance Services: A Systematic Approach
Ch. 8 - Prob. 8.1RQCh. 8 - Prob. 8.2RQCh. 8 - Prob. 8.3RQCh. 8 - Prob. 8.4RQCh. 8 - Prob. 8.5RQCh. 8 - Prob. 8.6RQCh. 8 - Prob. 8.7RQCh. 8 - Prob. 8.8RQCh. 8 - Prob. 8.9RQCh. 8 - Prob. 8.10RQ
Ch. 8 - Prob. 8.11MCQCh. 8 - Prob. 8.12MCQCh. 8 - Prob. 8.13MCQCh. 8 - Prob. 8.14MCQCh. 8 - Prob. 8.15MCQCh. 8 - Prob. 8.16MCQCh. 8 - Prob. 8.17MCQCh. 8 - Prob. 8.18MCQCh. 8 - Prob. 8.19MCQCh. 8 - Prob. 8.20MCQCh. 8 - Prob. 8.21PCh. 8 - Prob. 8.22PCh. 8 - Prob. 8.23PCh. 8 - Prob. 8.24PCh. 8 - Prob. 8.25PCh. 8 - Prob. 8.26PCh. 8 - Prob. 8.27PCh. 8 - Prob. 8.28PCh. 8 - Prob. 8.29PCh. 8 - Prob. 8.30PCh. 8 - Prob. 8.31P
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