Putting the final touches on the paperwork for Drano Plumbing was Damon Davis. The net profit, he thought, would be $50,000. He added up the columns on the balance sheet and discovered that the credit column was worth $30,000 and the de
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Putting the final touches on the paperwork for Drano Plumbing was Damon Davis. The net profit, he thought, would be $50,000. He added up the columns on the balance sheet and discovered that the credit column was worth $30,000 and the debit column was $400,000, respectively. What was the most probable cause of the inconsistent results? What should he do to determine the issue's origin if this wasn't the cause of the issue?
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- Damon Davis was working on a spreadsheet for the Drano Plumbing Company. He calculated that the net profit would be $50,000. He totaled the columns on the Balance Sheet as follows: debit, $400,000; and credit, $300,000. What was the most likely cause of this disparity? If this was not the case, how should he go about determining the cause of the error?Damon Davis was concluding Drano Plumbing's paperwork. He predicted a $50,000 net profit. When he tallied up the columns on the Balance Sheet, he found that the debit column amounted to $400,000 and the credit column amounted to $300,000. What was the most likely source of the result discrepancy? If this was not the source of the problem, how might he continue to identify its origin?Damon Davis was creating the Drano Plumbing Company's spreadsheet. According to his estimates, the net revenue would be $50,000. Who knows what the most probable cause of this mismatch was, but his Total Balance Sheet Columns showed a deficit of $400,000 and a credit of $300,000, which he summed together and calculated as follows: Why shouldn't this be the case, and what should he do to locate the issue's root cause?
- Damon Davis was putting the finishing touches on the paperwork for Drano Plumbing at the time of this writing. A net profit of $50,000, he predicted, would be generated. Upon tally of the balance sheet's columns, it became clear to him how much money was in the negative column ($400,000) and how much money was in the credit column ($300,000). What was the most likely cause of the mismatch in results, according to you? If this was not the source of the problem, what should he do next in order to determine the source of the issue?Ethical Considerations. In the process of closing thecompany books, you encounter a problematic transaction. One of the company’s customers was invoicedtwice for the same project materials, resulting in a$1,000 overcharge. You immediately notify the controller, whose response is, “Let it go, it happens often.It’ll probably balance out on some future transaction.”What should you do now?Hi, I was hoping you could double check my work on this? I have attached a picture of the answers I put on my first attempt of the question but after looking into it more, I think I see where I went wrong but wanted to know if you could look over it to see if I did it correctly and if my values are correct?So the first entry should be 'sales' instead of cash with the value of 6,696,700 and the gross profit would then be 2,977,500.Next, the income from operations would be 1,676,400 and finally the net income would be 1,666,250.Is this right?
- You are employed as an accountant for Innovative Computing. Your company is in the process of signing a large contract with an electronics components supplier. You have a friend who works for the electronics components supplier, and you were told the company having trouble paying bills. You ask to review the financial statements of the supplier. 1. Which financial statements would you find most helpful to determine the creditworthiness of the supplier? What information from the financial statements would you use to either support or disprove your friend’s claims? 2. What are the four basic financial statements? What is their purpose and what does each one tell you about a company? 3. How are the four financial statements interrelated? Which line items are used to prepare other statements? 4. In your opinion, explain which financial statement you think is the most important?Seeing your success, one of your friends, Greg Kommens, opened a cinnamon roll shop. He wants to buy one of your mixers, but he cannot afford to pay for the mixer for 30 days. Greg gave you a set of his most recent financial statements. What calculations should you make with the data from these statements, and what questions should you ask him after you have analyzed the statements? How will this information help you decide if you should extend credit to Greg?” Is there an alternative other than extending credit to Greg for 30 days?” “You are thinking seriously about being able to have your customers use credit cards. What are some of the advantages and disadvantages of letting your customers pay by credit card?” The following transactions occurred in June through August 2021. June 1 After much thought, you sell a mixer to Greg on credit, terms n/30, for $985 (cost of mixer $510). 30 Greg calls you. He is unable to pay the amount outstanding for…James Madison was brought in as assistant to Computron’s chairman, who had the task of getting the company back into a sound financial position. Madison must prepare an analysis of where the company is now, what it must do to regain its financial health, and what actions to take. Your assignment is to help her answer the following questions, using the recent and projected financial information shown next. Provide clear explanations, not yes or no answers. Why are ratios useful? What three groups use ratio analysis and for what reasons?
- Pls show me how to calculate each one. and show me full detail explanations. Dont JUST give me the answers. I need formulas and explanation. Thats more important than the solutions. Please I really need help. I failed both of my tests on accounting. I just dont get it. It's so hard. List all the advertising, selling, expenses and what is the operating profit. I mainly need help with that. Below is a list of balances for Sandals Inc. for the year ending December 31, 2020. All balances are in thousands of dollars. Sandals Inc. follows IFRS. Assume a tax rate of 20%. Exclude the presentation of earnings per share for this question. Unlimited common shares are authorized and 2,700 have been issued and are currently outstanding.The notes payable is payable over 5 years and $4,000 will be paid by December 31, 2021. Account Title Balance Accounts Payable $9,800 Accounts Receivable $12,900 Accumulated Depreciation $1,200 Advertising Expense $1,200 Cash $19,900 Cash Dividends…Assume that you are the controller of a business that provides legal services to clients. Suppose that the company has had a tough year, so the revenues have been lagging behind, based on previous years’ standards. What would you do if your boss (the chief executive officer [CEO] of the company) asked to reclassify a transaction to report loan proceeds of $150,000 as if the cash came from service fee revenue from clients instead. Would following the CEO’s advice impact the company’s accounting equation? How would reclassifying this one transaction change the outcome of the balance sheet, the income statement, and the statement of retained earnings? Would making this reclassification change the perception that users of the financial statements would have of the company’s current year success and future year potential? Write a memo, detailing your willingness (or not) to embrace this suggestion, giving reasons behind your decision. Remember to exercise diplomacy, even if you must dissent…James Madison was brought in as assistant to Computron’s chairman, who had the task of getting the company back into a sound financial position. Madison must prepare an analysis of where the company is now, what it must do to regain its financial health, and what actions to take. Your assignment is to help her answer the following questions, using the recent and projected financial information shown next. Provide clear explanations, not yes or no answers. Calculate the debt ratio, liabilities-to-assets ratio, times-interest-earned, and EBITDA coverage ratios. How does Computron compare with the industry with respect to financial leverage? What can you conclude from these ratios?
