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Problem 1: The gross profit method is not valid when:
a) There is substantial increase in the quantity of inventory during the year.
b) There is substantial increase in the cost of inventory during the year.
c) The gross margin percentage changes significantly during the year.
d) All ending inventory is destroyed by fire before it can be counted.
Problem 2: On August 15, a company sold goods for which it received a note bearing the market rate of interest on that date. The four-month note was dated July 15. The note principal, and with all interest, are due on November 15. When the note was recorded on August 15, which of the following accounts increased?
a) Unearned discount
b) Interest receivable
c) Prepaid interest
d) Interest revenue
Financial Statement Analysis and Preparation
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Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.
This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited
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Prepare general journal entries to record the transactions, assuming use of the periodic inventory system
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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