Answers
Answer:
1998, 1999, 2000:
Index value : -4.840, -4.840, -4.840
Days Receivable Index : 0.7243, 1.0546, 1.2562
Gross Margin Index : 0.5640, 0.4513, 0.2463
Asset Quality Index : 0.4293, 0.4300, 0.3116
Sales Growth Index : 1.3594, 1.1446, 2.2413
Depreciation Index : 0.1160, 0.1151, 0.0908
Selling & Admin Expense Index : 0.1962, 0.1650, -0.0716
Leverage Index : -0.2720, -0.2453, -0.3656
Total Accruals to Total Assets: -0.1491, -0.0285, -0.2709
Probability using norms-dist: 1.8% , 1.86%, 8.05%
Explanation:
Beneish's earning manipulation model is used to ascertain the probability of manipulation in the financial data. In this model ratio are calculated and then their index is identified to know an indication of possibility of fraud. In the given scenario the probability of manipulation is too high. The data is assessed through applying beneish model to understand actual financial position of the company.
Related Questions
Which of the following is the location where notes can be added?
An investment has an expected return of 11 percent per year with a standard deviation of 26 percent. Assuming that the returns on this investment are at least roughly normally distributed, how often do you expect to earn less than -15 percent?
The following is a comprehensive problem which encompasses all of the elements learned in previous chapters. You can refer to the objectives for each chapter covered as a review of the concepts. Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2014. The chart of accounts for Kelly Consulting is shown below:Cash 31 Kelly Pitney, Capital 12 Accounts Receivable 32 Kelly Pitney, Drawing 14 Supplies 33 Income Summary 15 Prepaid Rent 41 Fees Earned 16 Prepaid Insurance 51 Salary Expense 52 Rent Expense 18 Office Equipment 19 Accumulated Depreciation 53 Supplies Expense 21 Accounts Payable 54 Depreciation Expense 55 Insurance Expense 22 Salaries Payable 23 Unearned Fees 59 Miscellaneous ExpenseRequired: Journalize each of the May transactions using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the Post. Ref. column of the journal at this time.) For a compound transaction, if an amount box does not require an entry, leave it blank.
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Fixed Component per Month Variable Component per Job Actual Total for February Revenue $280 $39,250 Technician wages $8,400 $8,250 Mobile lab operating expenses $4,800 $31 $9,290 Office expenses $2,400 $3 $2,700 Advertising expenses $1,580 $1,650 Insurance $2,870 $2,870 Miscellaneous expenses $970 $1 $425 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $31 per job, and the actual mobile lab operating expenses for February were $9,290. The company expected to work 150 jobs in February, but actually worked 154 jobs.Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February.
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Answer:
Explanation:
2018 Financial Statement
Income Statement :
Amount of recognized revenue = 3/12 * $54,000
Cr Income statement $13,500
Dr Cash/ Bank Account $13,500
Balance Sheet :
Dr. Bank Account -$54,000
Cr Retained earning -$13,500
Cr Deferred Income -$40,500
Statement of Cash Flow :
Cr Operating income $13,500
Cr Increase in payable(deferred income) $40,500
Revenue to Recognize in 2019
Cr Income Statement $40,500
Dr. Deferred Income $40,500
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The quantitative assessment of the discrepancy between planned and actual behavior is known as variance analysis. This study is utilized to keep a corporationunder control by looking into areas where performance has been surprisingly bad.
Note:
Standard cost = SC
Actual cost = AC
Standar rate = SR
Actual rate = AR
Standard Quantity = SQ
Actual Quantity = AQ
Material Cost Varience = MCV
Material Rate Varience = MRV
Material Usage Variance = MUV
1) Computation of Material Cost Variance (MCV)
×
×
2) Computation of Material Rate Variance (MRV)
3) Computation of Material Usage Variance (MUV)
For more information regarding variance costing sums, refer to the link:
Answer:
A)1192 A
B) 192 A
C) 1000 A
Explanation:
The Question is to Compute Simba Company's Total, Price, and Quantity materials Variances
1) Computation of material Cost Variance
= The Standard Cost - The Actual Cost of the material
= 1,500 units x 2 pounds = 3000 pounds
Standard Cost = 3,000 pounds x $5 = $15,000
Therefore material variance = $15,000 - $16,192 = 1192A
2) The material Rate Variance or the Price Variance
= (Standard Rate - Actual Rate) Actual Quantity
= Actual Rae = $16,192 / 3200 = $5.06
Material Rate Variance = (5- 5.06) x 3,200
= 192 A
3) The material Usage Variance or Quantity variance
= (The Standard Quantity - Actual Quantity) Standard Rate
Standard Quantity = 1,500 Units x 2 Pounds = 3000 pounds
Material Usage Variance = (3,000-3,200) 5
= 1000 A
Answers
Answer:
6.47%
Explanation:
The computation of effective annual yield is shown below:-
Annual YTM = 6.37%
Semiannual YTM = 6.37% ÷ 2
= 3.185%
Effective Annual Yield = (1 + Semiannual YTM)^2 - 1
= (1 + 0.03185)^2 - 1
= 1.03185^2 - 1
= 1.0647 - 1
= 0.0647
or
= 6.47%
Hence, the effective annual yield is 6.47% i.e come after applying the above formula
Answers
Answer:
If the tax rate is 10% the better option is transaction 1 ($11,100 to 14,220)
IF the tax rate is 30% the better option is transaction 2 ($10,885 to 11,100)
Explanation:
We will compare the after tax cost for transaction two and check if it is better than 11,100 which will be the net cost for transaciton one
We must understad that the tax income deductible transacton provides a tax shield on the tax income, therefore his net effect is lower after considering taxes.
the rate will be think it as a discount to the pruchase price
at 10% income rate:
15,800 x ( 1 - 10% ) = 14,220
at 30% income rate
15,500 x ( 1 - 30% ) = 10,885
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Answer:
a) Maximum no. of shares that the company can issue
= Total Authorized Shares - Shares Outstanding
= 2100000 - 1400000
= 700,000
b) Number of shares to be issued to raise $44,000,000 at $55 per share
= 44,000,000 / 55
= 800,000
No, the firm would not be able to raise the needed fund.
c) The company will have to increase the number of authorized shares which would involve making amendments to its charter of incorporation. The amendments to the charter can be done only by vote of the existing shareholders.
Purchases (gross) 697,000
Freight-in 31,400
Sales revenue 924,000
Sales returns 73,200
Purchase discounts 12,100
Compute the estimated inventory at May 31, assuming that the gross profit is 40% of net sales
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Answer:
The estimated inventory at May 31 is $240,100
Explanation:
The gross profit is the difference between the sales revenue and the cost of good sold.
The gross profit percentage is the ratio of gross profit to net sales expressed as a percentage.
Net sales is the sales less returns and allowances. Similar to net sales is net purchases which is the gross purchase net the allowances and returns.
Net purchases = $697,000 - $12,100
= $684,900
Net sales = $924,000 - $73,200
= $850,800
Gross profit margin percent = gross profit/net sales
gross profit = 0.4 * $850,800
= $212,700
cost of goods sold = $850,800 - $212,700
= $638,100
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases + freight inward - cost of goods sold = closing balance
$161,900 + $684,900 + $31,400 - $638,100 = Estimated ending inventory
Estimated ending inventory = $240,100