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3 years ago

What negative consequences might a company face if it fails to keep accurate financial records?

Business

1 answer:

RoseWind [281]3 years ago

5 0

Answer:

they can be audited

Explanation:

the government will step and and demand a record of all their revenue that they have not sent in and if their records doesn't match the records of the government they can be forced to shut down.

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Below are Company Y's financial statements:

kow [346]

Answer:

Company Y

The external financial needed is:

= $1,290.

Explanation:

a) Data and Calculations:

Company Y's financial statements:

Income Statement

Sales $7,900

Costs 5,500

Taxable income $2,400

Taxes (25%) 600

Net income $1,800

Balance Sheet

Current assets $3,900

Fixed assets 8,600

Total assets $12,500

Current liabilities $2,100

Long-term debt 3,700

Equity 6,700

Total liab. & equity $12,500

Projected Income Statement:

Sales $9,085 ($7,900 * 1.15)

Costs 6,325 ($5,500 * 1.15)

Taxable income $2,760

Taxes (25%) 690

Net income $2,070

Dividends = 40% $828

Retained earnings $1,242

Projected Balance Sheet

Current assets $4,485 ($3,900 * 1.15)

Fixed assets 9,890 ($8,600 * 1.15)

Total assets $14,375

Current liabilities $2,415 ($2,100 * 1.15)

Long-term debt 4,018 ($14,375 - 2,415 - 7,942)

Equity 7,942 ($6,700 + $1,242)

Total liab. & equity $14,375

Working capital = $2,070 ($4,485 - $2,415)

Capital expenditure = $1,290 ($9,890 - 8,600)

External financing needed = Net income minus (working capital plus capital expenditure)

= $2,070 - ($2,070 + 1,290)

= $1,290

7 0

3 years ago

Leh Inc. recently borrowed $275,000 from its bank at a simple interest rate of 9 percent. The loan is for nine months and, accor

Andreyy89

Answer:

Monthly payment =$32,618.05

Explanation:

To arrive at the monthly installment, we would calculate the total interest due on the loan for nine months, add it to the principal and then divided the sum by 9 months

The monthly installment

= (Principal + total interest for 9 months)/ number of months

Interest for 9 months

= 9%× 9/12 × 275,000

= $18,562.5

Monthly installment

= (275,000 + $18,562.5)/9

=32,618.05 per month

3 0

3 years ago

This test that albert chong and his colleagues carried out was most relevant for evaluating the

vladimir2022 [97]

This test that Albert Chong and his colleagues carried out was most relevant for evaluating the allocative efficiency of these postal services because the test was designed to measure how often and how quickly the letters sent were returned to sender.

8 0

3 years ago

Maple Industries has 7 percent bonds outstanding that mature in thirteen years. The bonds pay interest semiannually and have a f

levacccp [35]

Answer:

A. 6.75%

Explanation:

In this question, we use the Rate formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Present value = $1,021.16

Future value or Face value = $1,000

PMT = 1,000 × 7% ÷ 2 = $35

NPER = 13 years × 2 = 26 years

The formula is shown below:

= Rate(NPER,PMT,-PV,FV,type)

The present value come in negative

So, after solving this, the pretax cost of debt is 6.75% (3.38% × 2)

5 0

3 years ago

Shore Company reports the following information regarding its production cost. Units produced 36,000 units Direct labor $ 31 per

Sedaia [141]

Answer:

$73.86 per unit

Explanation:

The computation of the cost per unit under the absorption costing is as follows

= Direct material per unit + Direct labor per unit + variable overhead per unit + fixed overhead per unit

where,

Variable overhead cost per unit

= $288,000 ÷ 36,000 units

= $8 per unit

And, the fixed overhead cost per unit is

= $102,920 ÷ 36,000 units

= $2.86 per unit

So the cost per unit is

= $32 + $31 + $8 + $2.86

= $73.86 per unit

3 0

3 years ago