Answer:
There are issues with Revenue recognition, Accrual basis of accounting and Cash basis of accounting.
Explanation:
The ethical issues are important to handle with care in business. The accountant has used accrual basis accounting technique in order to apply for a loan. The revised financial statements are prepared with accrual concept so that the company is successful in procuring loan. The revenue should be recognized when performance obligation is completed and the required services are rendered. The accrual concept states that the transaction should be recorded when it occurs regardless when the cash is actually received. Daryl has been involved in unethical practice as he has instructed his accountant to prepare revised financial statements to portray that the company's performance is good. It is an intention to deceive bank in order to procure loan.
Answer:
3.69
Explanation:
We know,
The productivity in sales revenue/labor expense = 
Given,
Sales revenue = Units sold × Sale price per unit
Sales revenue = 1,217 units × $1,700
Sales revenue = $2,068,900
labor expense = Total labor hours × wage rate per hour
labor expense = 46,672 × $12
labor expense = $560,064
Putting the values into the formula, We can get,
The productivity in sales revenue/labor expense = 
The productivity in sales revenue/labor expense = 3.69
The answer is greater than cash inflows. The explanation behind this is cash flow gaps happen when cash outflows are greater than cash inflows. Cash flow budgets assist financial managers determine whether the business needs to seek outside sources of funds beyond sales to manage projected cash shortages.
Answer:
14.1%
Explanation:
Cash return on assets is the ratio of a company's operating cash flow to its average total assets. It shows how a company is generating cash flow from its assets and compares a company’s profitability with other companies.
Cash return on assets = operating cash flow / average total assets
Given that:
operating cash flows = $240,000
Average total assets = ($1.6 million + $1.8 million) / 2 = $1.7 million.
Therefore, Cash return on assets = $240000 / $1.7 million = 0.141 = 14.1%
