Reference no: EM133378606

Questions:

1. For the next ten years, you intend to save $6,000 per year. You will get 5%. In ten years, how much will you have? I want you to simply add the future value of each contribution rather than using the annuity formula. It's possible to assume that you start saving on day one. Future Value of the First, Second, Third, Fourth, Fifth, Sixth, Seventh, Eight, Ninth, and Tenth Total Please show your calculation for the first installment directly below. Let's say you want to save $8,000 per year for the next 15 years instead of $6,000 per year. How much will you have in 15 years with a 5% interest rate? Display your estimate for the initial payment.

2. Assume you need to save $6,000 each year for the following 20 years rather than 10 years. How much will you have in 20 years with a 5% interest rate? Display your estimate for the initial payment.

3. Let's say you want to save $7,500 annually rather than $6,000 over the next ten years. How much will you have in ten years with a 7% interest rate? Display your estimate for the initial payment.

4. Let's say you want to save $5,000 per year for eight years rather than ten. How much will you have at the end of eight years with a 3% interest rate? Display your estimate for the initial payment.

5. Let's say you want to save $10,000 per year instead of $6,000 for the next 12 years. How much will you have in 12 years with a 6% interest rate? Display your estimate for the initial payment.

Case Study: 6.Case Study: The Case of the Misreported Financial Statements

You are the Chief Financial Officer (CFO) of a medium-sized manufacturing company that has been in operation for over 30 years. The company's financial statements have been audited and found to be in compliance with generally accepted accounting principles (GAAP) for many years.

However, recently, you received an anonymous tip that the financial statements may have been misreported for the past two years. The tipster claimed that the company has been misstating its revenues and profits by overstating them.

Your initial investigation reveals that there were some errors in the revenue recognition policies, which were recognized only when a customer made a payment. This resulted in the company overstating its revenues and profits by about 10% each year for the past two years. You also found out that the company's cash flow had not been impacted by these errors.

You quickly bring this matter to the attention of the CEO, who expresses surprise and shock at these allegations. The CEO insists that he was unaware of the situation and that the company's financial statements have always been accurate.

Your job now is to conduct a thorough investigation and determine the extent of the misreporting. You will need to:

Review the company's accounting policies and procedures to identify any weaknesses that may have contributed to the errors in revenue recognition.
Analyze the company's financial statements for the past two years to determine the extent of the misreporting and calculate the impact on the company's financial performance.
Conduct interviews with key personnel involved in the financial reporting process to determine who was responsible for the misreporting and whether it was intentional or unintentional.
Work with external auditors to determine if there were any breaches of GAAP and if any restatements are required.
Develop a plan to rectify the misreporting and prevent similar errors from occurring in the future.
In your final report to the CEO, you must present your findings, including a detailed explanation of the extent of the misreporting, the causes of the errors, and recommendations for corrective actions. You must also address any legal and regulatory issues that may arise as a result of the misreporting and outline steps that can be taken to prevent similar errors in the future.