User Account

All Pages

What are important to analyze as part of the audit

Assignment Help Accounting Basics
Reference no: EM132836475

Assume that in 2021 the line of outdoor products has not been going well and the company had to obtain additional funding in 2021 from two major banks to fund research and development as well as inventory production. The company chose to take out a $20 million loan with interest expense of $1 million per year and with the full principal payment due in 10 years. The second debt was a short term note of $5 million that is due back to the lender at the end of 2022 with a one-time payment of $6.5 million.

Other key financial statements data for 2021 was the following:

Problem 1: As the auditor, what type of ratio(s) are most affected by the additional bank funding? Why?

Problem 2: What are two specific ratios that you think are important to analyze as part of the audit? Why?

Reference no: EM132836475

Questions Cloud

What is dick and carey instructional design model : 1). What is Dick and Carey Instructional Design Model? 2). How can this model be apply instructions?
Describe legislative framework of a common european asylum : Describe the legislative framework of a Common European Asylum System (CEAS) and the various actors involved. Discuss to what degree one can talk about CEAS
Define the leading causes of safety and health accidents : Define the leading causes of safety and health accidents and how they may be prevented
Programming languages are vulnerable to type of attack : What is the difference of low and remote inclusion? What programming languages are vulnerable to this type of attack.
What are important to analyze as part of the audit : Assume that in 2021 the line of outdoor products. What are two specific ratios that you think are important to analyze as part of the audit? Why?
Business continuity plan and disaster recovery plan : What are the differences between a business continuity plan and a disaster recovery plan?
What is corporate social responsibility : Chose a public corporation that you are well aware of and that has a positive record of policies and practices of Ethics, Responsibilities and Sustainability.
How will the consolidated tax liability be allocated : How will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3? If the Parent group has consented to the relative taxable
Discuss the regulatory compliance requirements : Discuss the regulatory compliance requirements that the "Tesco" has to meet and the corresponding security, privacy, and records management functions

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate the before-tax profit needed to achieve

Calculate the before-tax profit needed to achieve an after-tax target of $480,000. What if Olivian had a 35 percent tax rate?

  Kade gulliver turned 20 years old today his grandfather

kade gulliver turned 20 years old today. his grandfather established a trust fund that will pay mr. gulliver 60000 on

  Prepare the journal entries related to the bonds

Prepare the journal entries related to the bonds the Bloomington made for the period April 1, 2014 through December 31, 2015

  What would your analysis show

If a bartender can somehow accumulate extra liquor, and does not register the extra drinks, which of these activities could be spotted by the analytical methods we studied?

  Determining bayesian probability

Yearly anutomobile inspections are required for residents of the state of Pennsylvania.Suppose that 18% of all inspected cars in Pennsylvania have problems that need to be corrected.

  Methods of determining the bad debt expense

Which of the following methods of determining bad debt expense does not properly match expense against revenue?

  Firm demand curves downward sloping

Why are both industry and firm demand curves downward sloping in monopoly market structure?

  Indicate the type of adjustment prepaid expenses accrued

moteki company accumulates the following adjustment data at december 31.indicate the type of adjustment prepaid

  How operations would appear if new equipment is purchased

New equipment has come onto the market that would allow Morton Company to automate a portion of its operations. Variable expenses would be reduced by $7.50.

  Type of cultural shock

If you were to send your top managers to these countries, what type of cultural shock should they expect? How would you help them alleviate this stress? Provide a few examples from each country.

  Discuss concept of overhead in terms of flexible budgeting

Discuss the concept of overhead in terms of flexible budgeting, overhead cost variances and how each relates to a manager's ability to control various aspects.

  Complete a schedule that shows the net cash flow

Messner Co. reported $140,620 of net income for 2012. Complete a schedule that shows the net cash flow from operating activities using the indirect method

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd