[SOLVED] Access the financial statements for the year

> Some inventory errors are said to be self-correcting in that the error has the opposite financial statement effect in the period following the error, thereby correcting the original account balance errors. Required: Despite this self-correcting feature,

> Refer to the situation described in BE 5–6. How much will Leslie accumulate in three years by depositing $500 at the beginning of each of the next 12 quarters? Data from BE 5-6: Leslie McCormack is in the spring quarter of her freshman year of college.

> Assume that the opening balances in each of the accounts is zero except for cash, accounts receivable, and accounts payable that had opening balances of $65,000, $43,000, and $22,000, respectively.

> Hudson Company, which is both a wholesaler and a retailer, purchases its inventories from various suppliers. Additional facts for Hudson’s wholesale operations are as follows: a. Hudson incurs substantial warehousing costs. b. Hudson values inventory at

> EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submission by companies and others who are required by law to file forms with the U.S. Securities and Exchange Co

> Income statement and balance sheet information abstracted from a recent annual report of Wolverine World Wide, Inc., appears below: The significant accounting policies note disclosure contained the following: Inventories The Company used the LIFO method

> In 2020, the Moncrief Company purchased from Jim Lester the right to be the sole distributor in the western states of a product called Zelenex. In payment, Moncrief agreed to pay Lester 20% of the gross profit recognized from the sale of Zelenex in 2021.

> At the end of 2021, the Biggie Company performed its annual physical inventory count. John Lawrence, the manager in charge of the physical count, was told that an additional $22,000 in inventory that had been sold and was in transit to the customer shoul

> Happlia Co. imports household appliances. Each model has many variations and each unit has an identification number. Happlia pays all costs for getting the goods from the port to its central warehouse in Des Moines. After repackaging, the goods are consi

> The table below contains selected financial information included in the 2017 financial statements of Kohlâs Corporation and Dillards, Inc., two companies in the department store industry. Required: 1. Calculate the 2017 gross profit rat

> You were recently hired to work in the controller’s office of the Balboa Lumber Company. Your boss, Alfred Eagleton, took you to lunch during your first week and asked a favor. “Things have been a little slow lately, and we need to borrow a little cash t

> You are spending the summer working for a local wholesale furniture company, Samson Furniture, Inc. The company is considering a proposal from a local financial institution, Old Reliant Financial, to factor Samson’s receivables. The company controller is

> Search on the Internet for the 2016 annual report for Sanofi-Aventis. Find the accounts receivable disclosure note. Required: 1. Has Sanofi-Aventis factored or securitized accounts receivable? How do you know? 2. Assume that Sanofi-Aventis decided to inc

> Refer to the situation described in BE 5–4. Suppose the opportunity requires John to invest $13,200 today. What is the interest rate John would earn on this investment? Data from BE 5-4: John has an investment opportunity that promises to pay him $16,00

> McLaughlin Corporation uses the allowance method to account for bad debts. At the end of the company’s fiscal year, accounts receivable are analyzed and the allowance for uncollectible accounts is adjusted. At the end of 2021, the company reported the fo

> EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange C

> For each of the following independent situations, indicate whether there is an apparent internal control weakness, and, if one exists, suggest alternative procedures to eliminate the weakness. 1. John Smith is the petty cash custodian. John approves all

> You have recently been hired as the assistant controller for Stanton Industries, a large, publicly held manufacturing company. Your immediate superior is the controller who, in turn, is responsible to the vice president of finance. The controller has ass

> The following is an excerpt from Sam Antar, “Is Green Mountain Coffee Roasters Shuffling the Beans to Beat Earnings Expectations?” (Phil’s Stock World delivered by Newstex, May 9, 2011.) On May 3, 2011, Green Mountain Coffee Roasters (NASDAQ: GMCR) beat

> Hogan Company uses the net method of accounting for sales discounts. Hogan offers trade discounts to various groups of buyers. On August 1, 2021, Hogan factored some accounts receivable on a without recourse basis. Hogan incurred a finance charge. Hogan

> The table below contains selected financial information included in the 2016 financial statements of Tyson Foods Inc. and Pilgrimâs Pride Corp. Required: 1. Calculate the 2016 receivables turnover ratio and average collection period for

> You have been hired as a consultant by a parts manufacturing firm to provide advice as to the proper accounting methods the company should use in some key areas. In the area of receivables, the company president does not understand your recommendation to

> Jerry’s Ice Cream Parlor is considering a marketing plan to increase sales of ice cream cones. The plan will give customers a free ice cream cone if they buy 10 ice cream cones at regular prices. Customers will be issued a card that will be punched each

> Assume that Pfizer, a large research-based pharmaceutical company, enters into a contract with a start-up biotechnology company called HealthPro and promises to 1. Grant HealthPro the exclusive rights to use Pfizer’s Technology A for the life of its pate

> On September 30, 2021, Ferguson Imports leased a warehouse. Terms of the lease require Ferguson to make 10 annual lease payments of $55,000 with the first payment due immediately. Accounting standards require the company to record a lease liability when

> Horizon Corporation manufactures personal computers. The company began operations in 2016 and reported profits for the years 2016 through 2019. Due primarily to increased competition and price slashing in the industry, 2020’s income statement reported a

> The birth of the Internet in the 1990s led to the creation of a new industry of online retailers such as Amazon, Overstock.com, and PCM, Inc. Many of these companies often act as intermediaries between the manufacturer and the customer without ever takin

> EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange C

> An article published in Accounting Horizons describes various techniques that companies use to manage their earnings. Required: In your library, on the Internet, or from some other source, locate the article “How Are Earnings Managed? Evidence from Audit

> Southwest Airlines provides scheduled air transportation services in the United States. Like many airlines, Southwest leases many of its planes from Boeing Company. In its long-term debt disclosure note included in the financial statements for the year e

> Johnson & Johnson is one of the worldâs largest manufacturers of health care products. The companyâs July 2, 2017, financial statements included the following information in the long-term debt disclosure note: The

> Harvey Alexander, an all-league professional football player, has just declared free agency. Two teams, the San Francisco 49ers and the Dallas Cowboys, have made Harvey the following offers to obtain his services: 49ers: $1 million signing bonus payable

> GlaxoSmithKline Plc. (GSK) is a global pharmaceutical and consumer health-related products company located in the United Kingdom. The company prepares its financial statements in accordance with International Financial Reporting Standards. Below is a por

> The following events occurred during 2021 for various audit clients of your firm. Consider each event to be independent and the effect of each event to be material. 1. A manufacturing company recognized a loss on the sale of investments. 2. An automobile

> Each of the following situations occurred during 2021 for one of your audit clients: 1. An inventory write-down due to obsolescence. 2. Discovery that depreciation expenses were omitted by accident from 2020âs income statement. 3. The u

> On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $100 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. Determine the price of the bonds on

> Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine each of the following: 1. The topic number (Topic XXX) that addresses exit or disposal cost obligations. 2. The specific eight-digit Codification citation (XX

> Ralph Lauren Corporation is a global leader in the design, marketing, and distribution of premium lifestyle products, including men’s, women’s and children’s apparel. Below are selected financial statements taken from a recent 10-K filing. Required: Use

> Refer to the income statement of The Home Depot, Inc., in Illustration 4â2 of this chapter. Required: 1. Is this income statement presented in the single-step or multiple-step format? 2. What is the companyâs approxima

> Rice Corporation is negotiating a loan for expansion purposes and the bank requires financial statements. Before closing the accounting records for the year ended December 31, 2021, Riceâs controller prepared the following financial sta

> The fiscal year-end for the Northwest Distribution Corporation is December 31. The company’s 2021 financial statements were issued on March 15, 2022. The following events occurred between December 31, 2021, and March 15, 2022. 1. On January 22, 2022, the

> The balance sheet and disclosure of significant accounting policies taken from the 2017 annual report of Walmart Stores Inc. appear below. Use this information to answer the following questions: 1. Does Walmart separately report current assets versus lon

> You recently joined the auditing staff of Best, Best, and Krug, CPAs. You have been assigned to the audit of Clearview, Inc., and have been asked by the audit senior to examine the balance sheet prepared by Clearviewâs account. Required

> You recently joined the internal auditing department of Marcus Clothing Corporation. As one of your first assignments, you are examining a balance sheet prepared by a staff accountant. In the course of your examination you uncover the following informati

> EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submissions by companies and others who are required by law to file forms with the SEC. All publicly traded domes

> Refer to Case 2–1 above. Mr. Pitt has relented and agrees to provide you with the information necessary to convert his cash basis financial statements to accrual basis statements. He provides you with the following transaction information for the fiscal

> Refer to the situation described in BE 5–8. What amount did Canliss borrow assuming that the first of the five annual $10,000 payments was not due for three years? Data from BE 5-8: Canliss Mining Company borrowed money from a local bank. The note the c

> You have recently been hired by Davis & Company, a small public accounting firm. One of the firm’s partners, Alice Davis, has asked you to deal with a disgruntled client, Mr. Sean Pitt, owner of the city’s largest hardware store. Mr. Pitt is applying to

> Consider the question of whether the United States should converge accounting standards with IFRS. Required: 1. Make a list of arguments that favor convergence. 2. Make a list of arguments that favor nonconvergence. 3. Indicate your own conclusion regard

> A new client, the Wolf Company, asks your advice concerning the point in time that the company should recognize revenue from the rental of its office buildings under generally accepted accounting principles. Renters usually pay rent on a quarterly basis

> Assume that the FASB is considering revising an important accounting standard. Required: 1. What constraint applies to the FASB’s consideration of whether to require companies to provide new information? 2. In what Concepts Statement is that constraint d

> A friend asks you about whether GAAP requires companies to disclose forecasts of financial variables to external users. She thinks that information could be very useful to investors. Required: 1. What are the two primary qualitative characteristics of ac

> Auditors often earn considerable fees from a company for examining (auditing) its financial statements. In addition, it’s not uncommon for auditors to earn additional fees from the company by providing consulting, tax, and other advisory services. Requir

> One of your friends is a financial analyst for a major stock brokerage firm. Recently she indicated to you that she had read an article in a weekly business magazine that alluded to the political process of establishing accounting standards. She had alwa

> The purpose of this case is to introduce you to the information available on the website of the Securities and Exchange Commission (SEC) and its EDGAR database. Required: Access the SEC home page on the Internet. The web address is www.sec.gov. Answer th

> The purpose of this case is to introduce you to the information available on the website of the International Accounting Standards Board (IASB). Required: Answer the following questions. 1. The IASB has how many board members? 2. In what city is the IASB

> Refer to the situation described in BE 4–8. Assume instead that the estimated fair value of the segment’s assets, less costs to sell, on December 31 was $7 million rather than $10 million. Prepare the lower portion of the 2021 income statement beginning

> In prior chapters, you applied Tableau to examine a data set and create calculations to compare two companies’ financial information. In this case, you continue in your role as an analyst conducting introductory research into the relative merits of inves

> To prepare for this case, you will need to download Tableau to your computer. If you have not completed any of the prior data analytics cases, follow the instructions listed in the Chapter 1 Data Analytics case to get set up. You will need to watch the v

> In the Chapter 1 and Chapter 2 Data Analytics Cases, you applied Tableau to examine a data set and create charts to compare our two (hypothetical) publicly traded companies: Discount Goods and Big Store. In this case, you continue in your role as an anal

> In the Chapter 1 Data Analytics Case, you applied Tableau to examine a data set and create bar charts to compare ten-year trends in operating cash flows and net income for our two (hypothetical) publicly traded companies: Discount Goods and Big Store. In

> This case introduces you to data analysis in a very basic way by allowing you to quickly extract, visualize, and compare financial data over a span of ten years for two (hypothetical) publicly traded companies: Discount Goods and Big Store. For this case

> In the Data Analytics Cases in previous chapters, we applied Tableau to examine two (hypothetical) publicly traded companies: GPS Corporation and Tru, Inc. regarding various aspects of their earnings performance and financial position. In this case, you

> In the Data Analytics Cases in the previous chapter, you used Tableau to examine two (hypothetical) publicly traded companies: GPS Corporation and Tru, Inc. regarding the return on stockholders’ equity. This time, you investigate two aspects of the relat

> In the Data Analytics Cases in the previous chapter, you used Tableau to examine two (hypothetical) publicly traded companies: GPS Corporation and Tru, Inc. regarding changes in the funded status of their pension plans during the previous ten years as we

> In the Data Analytics Cases in the previous chapter, you used Tableau to examine a data set and create charts to examine two (hypothetical) publicly traded companies: GPS Corporation and Tru, Inc., to examine the effect of the Tax Cuts and Jobs Act of 20

> Refer to the situation described in BE 4–7. Assume that the semiconductor segment was not sold during 2021 but was held for sale at year-end. The estimated fair value of the segment’s assets, less costs to sell, on December 31 was $10 million. Prepare th

> In the Data Analytics Cases in the previous chapter, you used Tableau to examine a data set and create charts to examine two (hypothetical) publicly traded companies: GPS Corporation and Tru, Inc. as to their pattern of leasing facilities, their transiti

> In the Data Analytics Cases in prior chapters, you used Tableau to examine a data set and create charts to compare two (hypothetical) publicly traded companies, Big Store and Discount Goods. In this chapter, you will examine GPS Corporation and Tru, Inc.

> In the Chapter 13 Data Analytics Cases, you used Tableau to examine a data set and create charts to compare our two (hypothetical) publicly traded companies: Discount Goods and Big Store as to their liquidity - their ability to pay short-term debts as th

> In the Chapter 3 Data Analytics Cases, you used Tableau to examine a data set and create charts to compare our two (hypothetical) publicly traded companies, Discount Goods and Big Store, as to their liquidity - their ability to pay short-term debts as th

> In the Chapter 11 Data Analytics Case, you used Tableau to examine a data set and create calculations to compare the relative age of two companies’ assets. In this case you continue in your role as an analyst conducting introductory research into the rel

> In the Chapter 10 Data Analytics Case, you used Tableau to examine a data set and create calculations to compare two companies’ fixed-asset turnover. In this case you continue in your role as an analyst conducting introductory research into the relative

> In the Chapter 3 Data Analytics Case, you applied Tableau to examine a data set and create calculations to compare two companies’ profitability. For the case in this chapter, you continue in your role as an analyst conducting introductory research into t

> In this case you are seeking to gain insight into the relative demand for the company’s products in various regions of the country and various states in which it sells. Your focus is on assessing the company’s inventory management relative to regional an

> In prior chapters, you used Tableau to examine a data set and create calculations to compare two companies’ financial information. In this case you are seeking to gain insight into the relative profitability of a company in various regions of the country

> Air France-KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are provided in Connect. This ma

> On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $10 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. The book val

> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material also is available under the Investor Relations li