Macgiver brass is a brass plating firm with sales of 8

Assignment Help Accounting Basics

Reference no: EM13454402

MacGiver Brass is a brass plating firm with sales of $8 million and profits before taxes of $625,000. MacGiver has a loan outstanding at its local bank for working capital purposes. As the loan officer reviewing MacGiver's loan application, you are charged with making a recommendation as to whether the $608,000 loan should be renewed for another year. Upon reviewing MacGiver's most recent annual report, you find the following footnote: Under-absorbed overhead of $462,000 was prorated to inventories (2/3) and cost of goods sold (1/3). Required: a. How should you evaluate MacGiver's annual report in light of this footnote? In particular, how does this footnote affect your recommendation regarding the loan? b. In preparing for your meeting with MacGiver's president and chief financial officer, what questions do you want to ask regarding this footnote?

Reference no: EM13454402

Questions Cloud

When he receives a customers cheque for less than the full : advanced radio repairs make all sales on account. cash receipts arrive by mail. james opens the envelopes and separates

Is a wap required for all tsdfs which agency must approve : 1.is a wap required for all tsdfs? which agency must approve the wap as part of the permit application? what are the

What was the total financial and social impact of the 2008 : what was the total financial and social impact of the 2008 ice storm on eastern canada and north eastern united

Estimate the amount of the unadjusted cash balance per : the following data apply to superior auto supply inc. for may 2012.1.balance per the bank on may 31 8000.2.deposits in

Macgiver brass is a brass plating firm with sales of 8 : macgiver brass is a brass plating firm with sales of 8 million and profits before taxes of 625000. macgiver has a loan

The half-life of carbon 14 is 5700 years this is commonly : the half-life of carbon 14 is 5700 years. this is commonly used to date cultural artifacts such as fire pits eaten

What kind of organism is a sponge animal or plant any : a sponge is an animal with three different types of cells. it is an aquatic invertebrate that has no true tissues or

Explain how you impact environment do you think you impact : describe your final carbon footprint. classify where most of the carbon you generate comes from. considering all you

The case of the oily rags outside of the citys fleet : the case scenario assignments for this class will be found in unit iv scenarios 1 and 2 and unit viii scenarios 3 and

User Account

All Pages