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2 years ago

When conducting an independent audit the accountant is to evaluate a company's financial statements and?

1 answer:

3 0

A financial statement audit is the examination of an entity's financial information and accompanying exposures by a liberated auditor.

<h3>What is the main objective of the audit of financial statements?</h3>

The purpose of an audit of financial statements is to enable the auditor to communicate an opinion on whether the financial statements are prepared, in all material respects, by an applicable monetary reporting framework.

External auditors are accountable for auditing the company's financial statements and delivering reasonable assurance that they are presented fairly and following GAAP and that they recollect a true representation of the company's financial position and end of operations.

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Parks Corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. The

Virty [35]

Answer:

$4,355.26

Explanation:

The net present value is the present value of future cash flows expected from the project minus the initial investment outlay

initial investment outlay=working capital investment = -$10,000

Years 1-5 cash inflow=$2,000

Year 6 cash inflow=normal cash inflows+release of working capital

Year 6 cash inflow=$2,000+$10,000=$12,000

the present value of a future cash flow=cash flow/(1+r)^n

n is 1 for year cash inflow 2 for year 2 cash inflow, 3 for year 3 cash inflow and so on

NPV=-$10,000+$2,000/(1+10%)^1+$2,000/(1+10%)^2+$2,000/(1+10%)^3+$2,000/(1+10%)^4+$2,000/(1+10%)^5+$12,000/(1+10%)^6

NPV=$4,355.26

5 0

2 years ago

Levine Inc. is considering an investment that has an expected return of 15% and a standard deviation of 10%. What is the investm

zmey [24]

Answer: 0.67

Explanation:

From the question, we are informed that Levine Inc. is considering an investment that has an expected return of 15% and a standard deviation of 10%.

The investment's coefficient of variation will be the standard deviation divided by the expected return. This will be:

= 10/15

= 0.67

3 0

2 years ago

Dyckman Dealers has an investment in Thomas Corporation bonds that Dyckman accounts for as a trading security. Thomas Corporatio

gtnhenbr [62]

Answer:

$20,000

Explanation:

The small investment in equities and bonds must be valued at market value and must not be accounted for in-accordance with the speculation of the company. So the market value here is $20,000 and must be valued at this price irrespective of the management valuation.

5 0

3 years ago

Cool Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $ 2 comma 003 c

Scrat [10]

Answer:

Cost of Goods Sold Budget

October November

Cost of Goods Sold $1,568,000 $1,664,600

Inventory Budget

October November

Total $752,920 $772,800

Purchase Budget

October November

Budgeted Purchases $2,259,320 $2,397,880

Explanation:

Cost of Goods Sold Budget

Gross Profit Margin = 30% therefore Markup is 70%

October November December

Sales $2,240,000 $2,378,000 $2,520,000

Cost of Goods Sold (70%) $1,568,000 $1,664,600 $1,764, 000

Inventory Budget

October November

Base Amount $420,000 $420,000

Based on Sales (20%) $332,920 $352,800

Total $752,920 $772,800

Purchase Budget

October November

Budgeted Sales $2,240,000 $2,378,000

Add Budgeted Closing Inventory $752,920 $772,800

Total Purchases Needed $2,992,920 $3,150,800

Less Budgeted Opening Inventory ($733,600) ($752,920)

Budgeted Purchases $2,259,320 $2,397,880

September Closing Stock is October`s Opening Stock

Therefore September Closing Stock = $420,000 + $1,568,000 × 20%

= $733,600

6 0

2 years ago

A reliable source in your industry has informed you that some of your more aggressive competitors are planning to formulate agre

Rom4ik [11]

Black mail just dont fire them either blackmail them or make them sign a contract

7 0

3 years ago