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bulgar [2K]
3 years ago
8

You have recently been hired as the assistant controller for Stanton Industries. Your immediate superior is the controller who,

in turn, reports to the vice president of finance. The controller has assigned you the task of preparing the year-end adjustments. For receivables, you have prepared an aging of accounts receivable and have applied historical percentages to the balances of each of the age categories. The analysis indicates that an appropriate balance for Allowance for Uncollectible Accounts is $180,000. The existing balance in the allowance account prior to any adjustment is a $20,000 credit balance. After showing your analysis to the controller, he tells you to change the aging category of a large account from over 120 days to current status and to prepare a new invoice to the customer with a revised date that agrees with the new aging category. This will change the required allowance for uncollectible accounts from $180,000 to $135,000. Tactfully, you ask the controller for an explanation for the change and he tells you, "We need the extra income; the bottom line is too low."
Required:
1. What is the effect on income before taxes of the change requested by the controller?
2. Discuss the ethical dilemma you face. Consider your options and responsibilities along with the possible consequences of any action you might take.
Business
1 answer:
Nata [24]3 years ago
5 0

Answer:

Answer is given below.

Explanation:

it is absolutely exploitative to adjust the maturing of the records receivable with no legitimate explanation so as to diminish the remittance made so as to expand the benefit and show an off base monetary record figures to the partners. The controller can't subjectively choose to change the records receivable to cut down the noncollectable records as at some point or another a similar will be found during review and a similar will be hailed off as a fake. The long haul results you would confront incorporate landing terminated from the position, having your authorized dropped in the event that you are CPA and may likewise confront lawful prosecutions. You should disclose to the controller that so as to simply introduce a decent benefit for the present year it can place into the danger for the future and put their vocation in question. Additionally, a similar won't be valued by the investors and the organization may go on free its altruism.

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Calculate the future value of $7,000 in four years at an interest rate of 8% per year.
OLga [1]

The Future value is $9523.42. Future value is the amount of money that, when invested now at an interest rate, will eventually grow to be.

<h3>What is the Future Value of Money?</h3>

Future value is the amount of money that, when invested now at an interest rate, will eventually grow to be.

Calculation of Future value

Present Value = $7,000     interest rate = 8%     Time = 4 years

FV = Future Value                PV = Present Value

FV=PV(1+i)ⁿ

FV= 7,000(1+0.8)⁴= $9,523.42

Thus, the Future Value of $7,000 for four years is $9523.42.

Learn more about Future Value here:

brainly.com/question/14860893

#SPJ1

4 0
2 years ago
Answer the question on the basis of the following data for the hypothetical nations of Alpha and Beta. Qs is domestic quantity s
bezimeni [28]

Question Completion:

Domestic Market for Steel, Alpha

Qs P Qd

60 5 10

40 4 20

30 3 30

20 2 40

10 1 50

Domestic Market for Steel, Beta

Qs P Qd

80 5 20

70 4 30

60 3 40

50 2 50

40 1 60

Answer:

Assuming that Alpha and Beta are the only two nations in the world, at the equilibrium world price:

Beta will export steel and Alpha will import steel.

Explanation:

a) Data and Calculations:

Domestic and World Market for Steel

Alpha                   Beta           World Market

Qs    P      Qd       Qs    P      Qd       Qs    P       Qd  

60    5        10       80    5       20      140    5       30

40    4       20       70    4       30       110     4       50

30    3       30       60    3       40       90     3       70

25   2.50  35       55    2.50  45       80    2.50  80

20   2       40       50    2       50        70    2       90

10   1       50        40    1        60       50     1       110

b) In the world market, equilibrium will occur at a price of $2.50, when the quantity supplied and demanded will be 80.  At this equilibrium price of $2.50, Alpha will supply 25 units, and Beta will supply 55 units.  Alpha will demand 35 units, and Beta will demand 45 units.  This implies that Beta will supply more than its demand for steel, while Alpha will supply less.  Therefore, Beta will export steel and Alpha will import steel.

4 0
3 years ago
Patrick, an attorney, is the sole shareholder of Gander Corporation, a C corporation. Gander is a personal service corporation w
Step2247 [10]

Answer:

Therefore, the Salary that Gander Corporation Pay Patrick during the Period without Negative Tax effects is $15,000.

Explanation:

Calculation of the Salary that Gander Corporation Pay Patrick during the Period:

December 1 through December 31 of the Current Year is One Month, They have to Pay 1/12 of the following year tax:

The salary for the deferral period (December 1 through December 31) must be at least proportionate to the employee’s salary received for the fiscal year.

Gander Corporation must pay the amount to Patrick during the Period December 1 through December 31, to permit the continued use of its fiscal year without negative tax effects is as follows,

$180,000 *1/12 = $15,000

4 0
3 years ago
Minden company introduced a new product last year for which it is trying to find an optimal selling price. marketing studies sug
fomenos
832,200 - 94 = 738.2 annual sales
3 0
3 years ago
Use the following information to calculate cash received from dividends: Dividends revenue $ 32,300 Dividends receivable, Januar
drek231 [11]

Answer:

$31,000

Explanation:

Calculation for the cash received from Dividend

Beginning dividends receivable + Dividend revenue - dividends paid = Ending dividends receivable

Hence,

Using this formula

Dividends paid = Beginging dividends receivable + dividend revenue - Ending dividends receivable

Let plug in the formula

= 3,100+32,300-4,400

=31,000

Therefore the amount of cash received from dividend will be $31,000.

Thus the dividend revenue is not the dividends which was received in cash, but instead it is the dividends which was earned during the period.

4 0
3 years ago
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