Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - Sunny Engineering Application company sells solar power swimming pool heaters. Sunny contracts 100% of the work to other companies. As Sunny is a new company its balance sheet has total assets of $78000 including $24000 of "stock subscriptions receivable". The largest asset is $42000 worth of "unrecovered development costs." The equity side of the balance sheet is made up of $78000 of "Common stock sub-subscribed".
The company is contemplating a public offering to raise $1 million. The shares to be sold to the public for $1 million will represent 40% of the then-issued and outstanding stock. There is two officer- employees of the company, Mike Whale and Willie Float, former officers of Canadian Brass Co. Float is being sued by the SEC for misusing funds raised by Canadian Brass in a public offering. The funds were used as compensatory balances for loans to Physics Inc. The Physics Inc. was controlled by Float and its predecessor for Sunny Energy Applications.
Canadian Brass is being sued by the SEC for reporting improper (exaggerated) income. Float was chief executive at that time. Many organizations are engaged in researching the feasibility of using solar energy. Most of the organizations are considerably larger and financially stronger than Sunny Engineering Company. The company has not been granted any patents that would serve to protect it from the competitor.
Required -
1. What potential risks may be present in this engagement?
2. What specific auditing and accounting problems appear to exist?
3. What additional information do you feel you need to know about the company?
4. Do you believe the engagement should be accepted or rejected? Why?
Speculate about whether the product or service fits within the capabilities of the company based on your research from previous modules
If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds? (A negative answer should be indicated by a minus sign.
A firm has average total assets of $800,000 and average total liabilities of $200,000. If profit after tax is $120,000, what is its return on shareholders funds
Calculate the present value of Ashly's lease payments as of January 1, 2019.On January 1, 2019, Ashly Farms leased a hay baler from Agrico Company.
Pretty Lady Cosmetic Products has an average production process time of 40 days. Estimate the average length of the firm
How that asset is valued is a very important issue for both the company and others outside the company (i.e. government (IRS)).
Medical Supply Company uses a cash receipts journal, a cash payments journal, a sales journal, a purchases journal, and a general journal
The recoverable amount of the entity was calculated to be $1,560,000. Prepare the journal entry for any impairment loss at 30 June 2021
The last payment is on month 36. Build the amortization table. What month will you make your last payment? How much will the last payment be?
Due to an airplane accident while flying back from Thunder Bay on business, Mr. Brooks was seriously injured and confined to a hospital for two full months
Zimmer Company completed its first year of operations on December 31, 2017. Its initial income statement showed that Zimmer had sales revenue of $198,000.
Marner Manufacturing Inc. (MMI) has decided to acquire, What should MMI do to acquire the machine? Borrow funds to purchase the machine or lease the machine.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd