Questions On Financial Statement

Submitted By cyclonus77
Words: 546
Pages: 3
Open Document
All numbers reported in millions
Total Assets: 6385.9
Total Liabilities: 2703.6
Total Equity: 3682.3
Total Liabilities and Equity: 6385.9
Total Assets = Total Liabilities including Equity.
Total Liabilities = 2703.6 = 42.3%
Total Assets 6385.9

Problem 2:
a) Part of the Chief Executive’s job is to certify that the financial statements are true and correct and no fraud or misrepresentation took place while reporting on the financial health of the company. Steve Jobs is also certifying that the numbers reported in the Financial Statements are accurate and the organization followed the specified laws and procedures in establishing and maintaining internal controls over financial reporting and auditing.
b) Prior to the enactment of the Sarbanes Oxley act, companies like Enron and Arthur Anderson committed fraud regarding the financial health of the organization. Congress felt that holding the CEO/CFO personally liable for the accuracy of Financial Statements would lead to stricter financial and internal controls within the organization.
c) Once they sign these documents, the CEO and CFO are personally liable for the accuracy and truthfulness of the Financial Statements. Criminal and other proceedings can be initiated against them if proof is found that these officers were involved in financial malpractice or fraud. Also, there’s the risk of getting fired and the negative impact on future employment opportunities.
Problem 3:
Income Statement:
Sales……………………..30,000
Wages Expense……..12,000
Net Income-----------18,000

Balance Sheet:
Cash…………………………………………….0.0
Accounts Receivable……………...30,000
Total Assets………………..…………30,000 Wages Payable…………………….. 12,000
Retained Earnings………………… 18,000
Total Liabilities & Equity….……30,000

Problem 4:
Income Statement:

Revenue (sale) (4000+14000)……..…18000
Operating Expenses:
Office rent……………………………………….3200
Salary………………………………………………4800
Net Income (Loss)…………………….….10000

Problem 5: Sales A/c C.O.G.S SG&A R.E 3087.8
R.E 14880.2 R.E 8926.7

Interest expense Income Tax expense R.E 346.3 R.E 721.1

Retained Earnings

C.O.G.S 8926.7 Sales 14880.2 SG&A 3087.8 R.E Bal 8122.4 Interest exp 346.3 Income Tax exp 721.1 Closing balance (B/S) 9920.70 23002.60 23002.60

Problem 6:
1) Debit Bank 10,000
Credit Stock/Capital 10,000
Assets (Bank) have gone up by 10k but the liability (stock) has also
Show More

Related Documents: Questions On Financial Statement

Essay about Problem Set 1

608 Office Hours: Mondays 2.30–5.00pm email: debraj.ray@nyu.edu, homepage: http://www.econ.nyu.edu/user/debraj/ Webpage for course: click on “Teaching”, and then on the course name. Econ-UA 323 Development Economics Outline of Answers to Problem Set 1 (1) A traded good is one that can be bought and sold through the international market. A nontraded good cannot. Of course, these are extreme descriptions of reality, and some goods may be partially but not fully tradeable. Equilibrium exchange…

Words 1328 - Pages 6

5414 Problem Set 1 Quality Essay

Problem Set #1 - Quality Directions: This assignment is to be completed individually. Please type your responses and submit a Word file and supporting Excel file to the Assignments section of Scholar. Label the files Lastname_PS1. The Word file should contain answers to the questions, with copies of graphs, diagrams, etc. imbedded. The Excel file is for me to look at in support of your responses. 1. Express Air is plagued by inefficiencies and poor service. Below is a check sheet used to assimilate…

Words 733 - Pages 3

Mechanical Engineering Design 1: Problem Set 1 Essay

Problem 1-7 Referencing Figure 1-2 from page 14 of the textbook, the cost % to grind a steel part to a tolerance of +/-0.0005 is 270 and the cost to turn it to a tolerance of +/-0.003 is 60. Grinding versus turning cost is 270/60 = 4.5 times. Problem 1-9 In my approach to this problem I used a base of 1.00 so that it would be easier to work with when computing my final answer. I came up with the following values for my equation: Load: 1.10 Strength: 0.85 Area: (0.95)2 Using Equation 1-1 from page…

Words 449 - Pages 2

GRAPH ALGORITHMS Essay

representation of a set of objects where some pairs of objects are connected by links.  The interconnected objects are represented by mathematical abstractions called vertices, and the links that connect some pairs of vertices are called edges.  Set of dots : Vertices(Nodes or points)  Joining lines or curves : Edges(Arcs or lines)  A graph is a set of objects called points or vertices connected by links called lines or edges Definition: Graph   G is an ordered triple G:=(V, E, f)  V is a set of nodes…

Words 794 - Pages 4

Case Study On Unit Fractions

fraction strips, drawn pictorial area models on paper). They identify and count equal parts as 1 half, 1 fourth, 1 third, 1 sixth, and 1 eighth in unit form before an introduction to the unit fraction (3.NF.A.1). In Topic B, students compare unit fractions and learn to build non‐unit fractions with unit fractions as basic building blocks (3.NF.A.3d). This parallels the understanding that the number 1 is the basic building block of whole numbers. In Topic C, students practice comparing unit fractions…

Words 3409 - Pages 14

Ex 7 Essay

Integer Programming Problem (HOMEWORK) Course book Exercise 11.1 (a),(b) and (d) Consider the problem max x1 + 2x2 s.t. −3x1 + 4x2 ≤ 4 3x1 + 2x2 ≤ 11 2x1 − x2 ≤ 5 x1 , x2 ≥ 0 x1 , x2 integer Use a figure to answer the following questions. (a) What is the optimal cost of the linear programming (LP) relaxation? What is the optimal cost of the integer programming problem? (b) What is the convex hull of the feasible set of the integer programming problem? (d) Solve the problem by Branch & Bound.…

Words 1450 - Pages 6

How to Be a Good Project Manager Essay

managers (PM) and the basic problems facing such a position. In fact, Posner suggests the idea that these approaches are interconnected and hence the primary successful PM’s characteristics are those that would help PM the most to overcome the basic problems facing his/her activities. 1-What primary characteristics distinguish the very successful project managers from the more mediocre…

Words 928 - Pages 4

Essay on Lol - the meaning

Spring 2012 Problem Set 3 Learning Objectives: The main objective of this assignment is to start looking at using some engineering tools to understand some hazards better and improve safety. After successfully completing this assignment, you should be able to Apply the principles of electric current flow to assess and prevent injuries from electricity, and Use some standard guidelines to prevent cutting, crushing, or other injuries from equipment. Before attempting Problem Set 3: 1. View Lectures…

Words 347 - Pages 2

Essay about idk idk idk

How to use the Math Essentials Textbook (rev 1/13) Begin reading on the first page of your unit. As you read through the material in the text, look over the Examples as you come to them, and do the PRACTICE exercises on paper (PRACTICE exercises are located beside the Examples, in the margin of the page). Do them neatly in your notebook, and show your work. The correct answers to the PRACTICE exercises are located at the bottom of the page, in the margin. After completing the PRACTICE…

Words 402 - Pages 2

Essay on burkhour reading exploration

Name Anthony Hatzlhoffer Program English Period ½ A Reading Exploration for The Scarlett Letter 1-4 Summary In chapter one, the set is introduced and there is a significance of a rose bush near the prison door. In chapter two we are introduced to Hester and her problem. We are also introduced to how Hester is a self-reliant woman and choses to accept her punishment of bearing the child. In chapter three, Hester is put on trial and sees that her husband is not away, but that…

Words 1628 - Pages 7