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Volgvan
3 years ago
7

Murphy & Johnson is a privately owned manufacturer of small motors for lawnmowers, tractors, and snowmobiles. The components

of its financial statements are (1) income before taxes = $21 million, (2) total assets = $550 million, and (3) total revenues = $775 million.
a) Determine overall materiality and determine tolerable misstatement. Justify your decisions.
Business
1 answer:
Gennadij [26K]3 years ago
6 0

Answer:

Auditing:it enables business managers,consultants,investors,regulatory agencies and creditors to take right decision on financial aspects of the entity,auditing also ensures that the financial information pertaining to he entity is reliable,credible,relevant and time bound.

Explanation:

Murphy & Johnson is a privately-owned company, we should use 5% of net income before taxes. => Planning Materiality = $21 million × 5% = $1.05 million. The planning materiality is not an extremely high number, so we will use 50% to help determine tolerable  misstatement,  as   it   is   a  safer  value   to  use  when  calculating   tolerable  misstatements because it has a lower risk. => Tolerable Misstatement = $1.05 million × 0.50 = $525,000.

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Marathon sports equipment company projected sales of 79 comma 000 units at a unit sales price of $ 14 for the year. actual sales
pentagon [3]

Answer:

$26,000

Explanation:

The Sales volume variance can be calculated using the following formula:

Sales Volume Variance = Actual Sales ($) - Budgeted Sales ($)

Or you can also use the following formula:

Sales Volume Variance = (Actual Sales Units - Budgeted Sales Units) * Budgeted price per unit

Here

Actual Sales ($) is 77000 unit at $14 budgeted sales price per unit which means total sales in dollars was $1,078,000.

Budgeted Sales ($) is 79000 unit at $14 budgeted sales price per unit which means total budgeted sales in dollars was $1,104,000.

Sales Volume Variance = $1,078,000 - $1,104,000 = $26,000

3 0
3 years ago
Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee. The government purchase
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Answer:

Pakistan's GDP is 13.81 trillions of rupees.

Explanation:

GDP = C + I + G + NX

Here:

C = 10.50

I = 1.30

G= 2.80

NX =  (1.30 - 2.09) = -0.79

GDP = 10.50 + 1.30 + 2.80 - 0.79

GDP = 13.81

8 0
3 years ago
Which loan type requires you to make loan payments while you’re attending school?
boyakko [2]
I think it's <span>none of the above.</span>
7 0
3 years ago
__________ plans are pay-for-performance plans that put a small amount of base pay at risk, in exchange for the opportunity to e
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Answer:

The correct answer to the following question will be "Variable Play Plan".

Explanation:

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Therefore, the Variable Play Plan is the right answer.

6 0
4 years ago
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Answer: institutional advertising      

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