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Answera:
The Performance materiality for Current Assets
The Performance materiality for current Assets = Total Current
Assets x 6% x 1/4
=(Cash and cash equivalents + Accounts Receivable + Prepaids +
Inventory) x 6% x 1/4
=(800000+125000+175000+100000) x 6% x 1/4
=$1200000 x 6% x 1/4
=$18000
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Based on past experience with a client, an auditor determined performance materiality for current assets should...
114" Based on past experience with a client, an auditor determined performance materiality for current assets...
114" Based on past experience with a client, an auditor determined performance materiality for current assets should be calculated at 1/4 of total materiality (7% of total current assets) and noncurrent assets should be calculated at 1/3 of total materiality (4% of total noncurrent assets). Calculate performance materiality for current assets based on the following: Cash and cash equivalents Land Accounts receivable Prepaids Building Fixtures and equipment Inventory Leasehold improvements $900,000 200,000 150,000 150,000 400,000 500,000 100,000 100,000 O $22,750...
Based on past experience with a client, an auditor determined performance materiality for fixed assets should...
Based on past experience with a client, an auditor determined performance materiality for fixed assets should be calculated at 1/4 of total materiality (5% of total gross fixed assets). Calculate performance materiality based on the following: Fixed assets (gross) at 1/1/2017 $1,000,000 Capital expenditures 250,000 Dispositions 200,000 Accumulated depreciation at 1/1/2017 400,000 Accumulated depreciation at 12/31/2017 370,000 $8,500 $7,500 $15,625 $13,125
Calculate the current ratio, quick ratio, long-term debt/total assets, times interest earned, and fixed cost coverage...
Calculate the current ratio, quick ratio, long-term debt/total
assets, times interest earned, and fixed cost coverage using the
picture below.
X2 X3 X4 $2,500,000 3.200,000 3,500,000 4,000,000 1.900.000 2400.0002.700.000 3200.000 800,000 400,00D 25,000 200,000 10.000 20.000 30.000 60.000 15,000 107,500 COST OF GOODS SOLD GROSS PROFIT SELLING & ADMINISTRATIVE EXPENSE DEPRECIATION LEASES MISCELLANEOUS EXPENSE 600,000 400,000 800,000 800,000 400,000 160,000 190,000 138,700 25,000 175,000 170,000 89,000 EARNINGS BEFORE INTEREST & TAXES INTEREST EARNINGS BEFORE TAXES TAXES (35%) NET INCOME DIVIDENDS...
20.You are evaluating audit results for assets in the audit of Stevens Manufacturing. You set the...
20.You are evaluating audit results for assets in the audit of Stevens Manufacturing. You set the preliminary judgment about materiality at $70,000. The account balances, tolerable misstatement, and estimated overstatements in the accounts are shown next: Account Account balance Tolerable Misstate Est. of Total overstatement Cash $25,000 $2,500 $2,000 Account Rec. $600,000 $15,000 $40,000 Inventory $1,250,000 $25,000 ? Other assets $125,000 $7,500 $24,000 Total $2,000,000 $50,000 ? a. Assume you tested inventory amounts totaling $600,000 and found $8,000 in overstatements....
Updated Question Question: 14-7 Performance measure: Information from the 2010 form 990 and the 2010 annual...
Updated Question
Question: 14-7 Performance measure: Information from the 2010
form 990 and the 2010 annual report for feeding america, follows.
Use the following information to complete the exercise. A. Compute
the following performance measures using the Form 990 data
presented and comment on what information they convey to a
potential donor whit out comparing them to prior years or other
comparable agencies. 1 .Current ratio- liquidity 2.
Revenues/expenses going concern 3. Program expenses/total expenses-
program effectiveness 4. Fund-raising expenses/public...
Note the industry average ratios below: A/R days (based on average balances) = 57 days A/P days (based on average balances) = 23 days Current ratio (based on ending balance) = 1.8x Based on Acme’s A...
Note the industry average ratios below:
A/R days (based on average balances) = 57 days
A/P days (based on average balances) = 23 days
Current ratio (based on ending balance) = 1.8x
Based on Acme’s A/R days, A/P days and Current ratios for the
nine months ending September 30, 2017, which of the following
conclusions is most accurate? Assume 273 days in the nine months
ending September 30, 2017 and 365 days in the year.
Compared to the industry average:...
2. Balance sheet The balance sheet provides a snapshot of the financial condition of a company....
2. Balance sheet The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company’s financial condition and performance. Blue Hamster Manufacturing Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information...
Comparative Balance Sheets For 20X1 and 20X2 Year-End Year-End Assets 20X1 20X2 Current assets: Cash $...
Comparative Balance Sheets For 20X1 and 20X2 Year-End Year-End Assets 20X1 20X2 Current assets: Cash $ 70,000 $100,000 Accounts receivable (net) 300,000 350,000 Inventory 410,000 430,000 Prepaid expenses 50,000 30,000 Total current assets 830,000 910,000 Investments (long-term securities) 80,000 70,000 Plant and equipment 2,000,000 2,400,000 Less: Accumulated depreciation 1,000,000 1,150,000 Net plant and equipment 1,000,000 1,250,000 Total assets $1,910,000 $2,230,000 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 250,000 $ 440,000 Notes payable 400,000 400,000 Accrued expenses 70,000 50,000...
ASSETS 2016 2017 Current Assets: Cash and cash equivalents $125,000 $200000 Short-term investments $575 $600 Accounts...
ASSETS 2016 2017 Current Assets: Cash and cash equivalents $125,000 $200000 Short-term investments $575 $600 Accounts receivable $1500 $1700 Inventories $135 $150 Total Current Assets $127210 $202450 Investments: $800 $850 Property & Equipment: Medical equipment $600 $650 Office equipment $250 $800 Total $850 $1450 Accumulated depreciation ($126) ($135) Total Assets: $128734 $204615 LIABILITIES & EQUITY Current Liabilities: Salaries $175000 $225000 Benefits $1750 $2500 Accrued expenses $1100 $1200 Bad debt $375 $1500 Total current liabilities $178225 $230200 Long-Term Debt $1500 $1500...
I need help with the statement questions please. 2. Balance sheet Aa Aa The balance sheet...
I need help with the statement questions
please.
2. Balance sheet Aa Aa The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company's financial condition and performance. Green Caterpillar Garden Supplies Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For...
114" Based on past experience with a client, an auditor determined performance materiality for current assets should be calculated at 1/4 of total materiality (7% of total current assets) and noncurrent assets should be calculated at 1/3 of total materiality (4% of total noncurrent assets). Calculate performance materiality for current assets based on the following: Cash and cash equivalents Land Accounts receivable Prepaids Building Fixtures and equipment Inventory Leasehold improvements $900,000 200,000 150,000 150,000 400,000 500,000 100,000 100,000 O $22,750...
Calculate the current ratio, quick ratio, long-term debt/total
assets, times interest earned, and fixed cost coverage using the
picture below.
X2 X3 X4 $2,500,000 3.200,000 3,500,000 4,000,000 1.900.000 2400.0002.700.000 3200.000 800,000 400,00D 25,000 200,000 10.000 20.000 30.000 60.000 15,000 107,500 COST OF GOODS SOLD GROSS PROFIT SELLING & ADMINISTRATIVE EXPENSE DEPRECIATION LEASES MISCELLANEOUS EXPENSE 600,000 400,000 800,000 800,000 400,000 160,000 190,000 138,700 25,000 175,000 170,000 89,000 EARNINGS BEFORE INTEREST & TAXES INTEREST EARNINGS BEFORE TAXES TAXES (35%) NET INCOME DIVIDENDS...
Updated Question
Question: 14-7 Performance measure: Information from the 2010
form 990 and the 2010 annual report for feeding america, follows.
Use the following information to complete the exercise. A. Compute
the following performance measures using the Form 990 data
presented and comment on what information they convey to a
potential donor whit out comparing them to prior years or other
comparable agencies. 1 .Current ratio- liquidity 2.
Revenues/expenses going concern 3. Program expenses/total expenses-
program effectiveness 4. Fund-raising expenses/public...
Note the industry average ratios below:
A/R days (based on average balances) = 57 days
A/P days (based on average balances) = 23 days
Current ratio (based on ending balance) = 1.8x
Based on Acme’s A/R days, A/P days and Current ratios for the
nine months ending September 30, 2017, which of the following
conclusions is most accurate? Assume 273 days in the nine months
ending September 30, 2017 and 365 days in the year.
Compared to the industry average:...
I need help with the statement questions
please.
2. Balance sheet Aa Aa The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company's financial condition and performance. Green Caterpillar Garden Supplies Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For...
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