How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Manal Elkhoshkhany Your Own Question

Manal Elkhoshkhany
Manal Elkhoshkhany, Tutor
Category: Homework
Satisfied Customers: 9476
Experience:  More than 5000 online tutoring sessions.
3708793
Type Your Homework Question Here...
Manal Elkhoshkhany is online now
A new question is answered every 9 seconds

For BusinessTutor E24-2 (Post-Balance-Sheet Events) For

Resolved Question:

<p>For: BusinessTutor: E24-2 (Post-Balance-Sheet Events) For each of the following subsequent (post-balance-sheet) events, indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to the financial statements, or (c) neither adjust nor disclose. ______ 1. Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end. ______ 2. Introduction of a new product line. ______ 3. Loss of assembly plant due to fire. ______ 4. Sale of a significant portion of the company’s assets. ______ 5. Retirement of the company president. ______ 6. Prolonged employee strike. ______ 7. Loss of a significant customer. ______ 8. Issuance of a significant number of shares of common stock. ______ 9. Material loss on a year-end receivable because of a customer’s bankruptcy. ______ 10. Hiring of a new president. ______ 11. Settlement of prior year’s litigation against the company. ______ 12. Merger with another company of comparable size. *E24-4 (Ratio Computation and Analysis; Liquidity) As loan analyst for Utrillo Bank, you have been presented the following information. Toulouse Co. Lautrec Co. Assets Cash $ 120,000 $320,000 Receivables 220,000 302,000 Inventories 570,000 518,000 Total current assets 910,000 1,140,000 Other assets 500,000 612,000 Total assets $1,410,000 $1,752,000 Liabilities and Stockholders’ Equity Current liabilities $ 305,000 $ 350,000 Long-term liabilities 400,000 500,000 Capital stock and retained earnings 705,000 902,000 Total liabilities and stockholders’ equity $1,410,000 $1,752,000 Annual sales $ 930,000 $1,500,000 Rate of gross profit on sales 30% 40% Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. In as much as your bank has reached its quota for loans of this type, only one of these requests is to be granted. Instructions Which of the two companies, as judged by the information given above, would you recommend as thebetter risk and why? Assume that the ending account balances are representative of the entire year. CA24-2 (Disclosures Required in Various Situations) Rem Inc. produces electronic components for sale to manufacturers of radios, television sets, and digital sound systems. In connection with her examination of Rem’s financial statements for the year ended December 31, 2007, Maggie Zeen, CPA, completed field work 2 weeks ago. Ms. Zeen now is evaluating the significance of the following items prior to preparing her auditor’s report. Except as noted, none of these items have been disclosed in the financial statements or notes. Item 1 A 10-year loan agreement, which the company entered into 3 years ago, provides that dividend payments may not exceed net income earned after taxes subsequent to the date of the agreement. The balance of retained earnings at the date of the loan agreement was $420,000. From that date through December 31, 2007, net income after taxes has totaled $570,000 and cash dividends have totaled $320,000. On the basis of these data, the staff auditor assigned to this review concluded that there was no retained earnings restriction at December 31, 2007. Item 2 Recently Rem interrupted its policy of paying cash dividends quarterly to its stockholders. Dividends were paid regularly through 2006, discontinued for all of 2007 to finance purchase of equipment for the company’s new plant, and resumed in the first quarter of 2008. In the annual report dividend policy is to be discussed in the president’s letter to stockholders. Item 3 A major electronics firm has introduced a line of products that will compete directly with Rem’s priXXXXX XXXXXne, now being produced in the specially designed new plant. Because of manufacturing innovations, the competitor’s line will be of comparable quality but priced 50% below Rem’s line. The competitor announced its new line during the week following completion of field work. Ms. Zeen read the announcement in the newspaper and discussed the situation by telephone with Rem executives. Rem will meet the lower prices that are high enough to cover variable manufacturing and selling expenses but willpermit recovery of only a portion of fixed costs. Item 4 The company’s new manufacturing plant building, which cost $2,400,000 and has an estimated life of 25 years, is leased from Ancient National Bank at an annual rental of $600,000. The company is obligated to pay property taxes, insurance, and maintenance. At the conclusion of its 10-year noncancellable lease, the company has the option of purchasing the property for $1. In Rem’s income statement the rental payment is reported on a separate line. Instructions For each of the items above discuss any additional disclosures in the financial statements and notes that the auditor should recommend to her client. (The cumulative effect of the four items should not be considered)</p><p> </p><p>I'd like to get it back by Sat evening Thx</p>
Submitted: 4 years ago.
Category: Homework
Expert:  Manal Elkhoshkhany replied 4 years ago.

Hello kunede

 

When is the deadline for this please?

Customer: replied 4 years ago.
Can I get both back on Sat after 6 pm. Thx
Expert:  Manal Elkhoshkhany replied 4 years ago.
Manal Elkhoshkhany, Tutor
Category: Homework
Satisfied Customers: 9476
Experience: More than 5000 online tutoring sessions.
Manal Elkhoshkhany and 6 other Homework Specialists are ready to help you
Customer: replied 4 years ago.
I clicked the accept button but nothing happening?
Expert:  Manal Elkhoshkhany replied 4 years ago.

That is strange kunede

 

It did not go through though so I will post this reply as an answer so that you see the accept button, let us see if this works

 

 

Manal Elkhoshkhany, Tutor
Category: Homework
Satisfied Customers: 9476
Experience: More than 5000 online tutoring sessions.
Manal Elkhoshkhany and 6 other Homework Specialists are ready to help you
Customer: replied 4 years ago.

OK. I sorry just got back in town late lastnight. Can you help me with another one?

 

  • 1. The net increase (decrease) in cash reported on the statement of cash flows should reconcile the beginning and ending cash balances reported in the comparative balance sheets.

 

  • 2. Cash payments for operating expenses are computed by subtracting an increase in prepaid expenses and a decrease in accrued expenses payable from operating expenses.

 

  • 3. Of the following questions, which one would not be answered by the statement of cash flows?
  • a. Where did the cash come from during the period?
  • b. What was the cash used for during the period?
  • c. Were all the cash expenditures of benefit to the company during the period?
  • d. What was the change in the cash balance during the period?

 

  • 4. Which of the following would be classified as a financing activity on a statement of cash flows?
  • a. Declaration and distribution of a stock dividend
  • b. Deposit to a bond sinking fund
  • c. Sale of a loan receivable
  • d. Payment of interest to a creditor

 

  • 5. In reporting extraordinary transactions on a statement of cash flows (indirect method), the
  • a. gross amount of an extraordinary gain should be deducted from net income.
  • b. net of tax amount of an extraordinary gain should be added to net income.
  • c. net of tax amount of an extraordinary gain should be deducted from net income.
  • d. gross amount of an extraordinary gain should be added to net income.

 

  • 6. The following information on selected cash transactions for 2008 has been provided by Simpson Company:

Proceeds from sale of land $160,000

Proceeds from long-term borrowings 400,000

Purchases of plant assets 144,000

Purchases of inventories 680,000

Proceeds from sale of Simpson common stock 240,000

What is the cash provided (used) by investing activities for the year ended December 31, 2008, as a result of the above information?

  • a. $16,000
  • b. $256,000.
  • c. $160,000.
  • d. $800,000.

 

  • 7. Bell Corp.'s comparative balance sheet at December 31, 2008 and 2007 reported accumulated depreciation balances of $800,000 and $600,000, respectively. Property with a cost of $50,000 and a carrying amount of $38,000 was the only property sold in 2008. Depreciation charged to operations in 2008 was
  • a. $188,000.
  • b. $200,000.
  • c. $212,000.
  • d. $224,000.

 

  • 8. Net cash flow from operating activities for 2008 for Fordham Corporation was $300,000. The following items are reported on the financial statements for 2008:

Cash dividends paid on common stock 20,000

Depreciation and amortization 12,000

Increase in accounts receivables 24,000

Based on the information above, Fordham's net income for 2008 was

  • a. $312,000.
  • b. $296,000.
  • c. $264,000.
  • d. $256,000.

 

  • 9. The indirect method adjusts net income for items that affected reported net income but did not affect cash.

 

  • 10. Cash receipts from customers are computed by adding a decrease in accounts receivable to revenue from sales.

 

and also: I need a guideline of Full Disclosure paper" Answer Q2 in ch 24 -Explain the need for full disclosure in financail reort. Indentify possible consequrnces o failing to properly disclose certain items in financial statement.

 

I'll sign in again after1pm. Thx in advance

Expert:  Manal Elkhoshkhany replied 4 years ago.
sure :)
Expert:  Manal Elkhoshkhany replied 4 years ago.
THIS ANSWER IS LOCKED!
You can view this answer by clicking here to Register or Login and paying $3.
If you've already paid for this answer, simply Login.
Manal Elkhoshkhany, Tutor
Category: Homework
Satisfied Customers: 9476
Experience: More than 5000 online tutoring sessions.
Manal Elkhoshkhany and 6 other Homework Specialists are ready to help you
Customer: replied 4 years ago.
<p>Can you let me know if I accepted all questions that posted?</p><p>Can you please help me out little more. The Full disclosure needs at least 700 words. Can you give me more point (something more to talk about) or requirement of the disclosure to add it in the report. Thx</p>
Expert:  Manal Elkhoshkhany replied 4 years ago.

Hello kunede

 

The following post has not been accepted:

 

http://www.justanswer.com/questions/3oy77-for-businesstutor-e5-12-preparation-of-a-balance-sheet

 

As for the full disclosure question, you can add to my solution (which you need to reword as well), you can list the benefits and importance of full disclosure which is listed in the book on P. 1282 through 1284

 

Thank you

Customer: replied 4 years ago.
I can't open the link above?
Expert:  Manal Elkhoshkhany replied 4 years ago.

I tried opening it and it opens fine kunede. Anyway, if you click "My Questions" tab above, you will see the post that starts with "For BusinessTutor E5-12 ", that is the one that you have not accepted. I am also not sure why when you click accept nothing happens, I checked with management and I have been posting solutions and nobody had problems like that at all. I am not sure if there is a problem with your pc

 

Thank you

Customer: replied 4 years ago.
got it!!!! Thx

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4520
    More than 5000 online tutoring sessions.
< Last | Next >
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4520
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/LI/lindaus/2012-6-10_04811_IMG20120609164157.64x64.jpg Linda_us's Avatar

    Linda_us

    Finance, Accounts & Homework Tutor

    Satisfied Customers:

    3121
    Post Graduate Diploma in Management (MBA)
  • http://ww2.justanswer.com/uploads/ComputersGuru/2010-02-13_051118_Photo41.JPG LogicPro's Avatar

    LogicPro

    Engineer

    Satisfied Customers:

    3035
    Expert in Java C++ C C# VB Javascript Design SQL HTML
  • http://ww2.justanswer.com/uploads/lanis/2009-4-1_233717_phput9xef_c1pm.jpg Lani S.'s Avatar

    Lani S.

    Tutor

    Satisfied Customers:

    2457
    Registered Nurse, Internet Researcher, Private Tutor
  • http://ww2.justanswer.com/uploads/chooser77/2009-08-18_162025_Chris.jpg Chris M.'s Avatar

    Chris M.

    M.S.W. Social Work

    Satisfied Customers:

    2341
    Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
  • http://ww2.justanswer.com/uploads/JawaadAhmed/2009-6-27_12137_SIs_SHadi.jpg F. Naz's Avatar

    F. Naz

    Chartered Accountant

    Satisfied Customers:

    1975
    Experience with chartered accountancy
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg Bizhelp's Avatar

    Bizhelp

    CPA

    Satisfied Customers:

    1873
    Bachelors Degree and CPA with Accounting work experience
 
 
 

Related Homework Questions