Solutions for the Biltrite Bicycles Inc. Case Module I - Assessment of Inherent Risk 2 Module II – Assessment of Control Risk 16 Module III - Control Test: Sales Processing 28 Module IV - PPS Sampling: Factory Equipment Additions 30 Module V - Accounts Receivable Aging Analysis 34 Module VI - Sales and Purchases Cutoff Tests 41 Module VII - Search for Unrecorded Liabilities 46 Module VIII - Dallas Dollar Bank Reconciliation 48 Module IX- Analysis of Interbank Transfers 51 Module X -
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patents against infringement supporting the stable cash flow projections) 4. Excess cash of 95.1 million that can be used as a source of funds 5. Tax rate of 48% and net interest expenses are inflows instead of outflows without the LBO – implying value can be created by levering up and utilizing the interest expenses through the associated income tax shield 6. Potential reduced taxable income due to increased deductions for amortization‚ depreciation and cost of goods sold as a result of the write-up
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pumps were reduced and selling expenses increased to meet competition and keep the plant operating at capacity. Second-quarter results for the current year‚ which follows‚ typify recent experience. ONTARIO PUMP COMPANY Income Statement Second Quarter (in thousands) R-Pump F-Pump S-Pump Total Sales $4‚800 $2‚700 $2‚700 $10‚200 Cost of goods sold 3‚144 2‚310 2‚850 8‚304 Gross margin $1‚656 $ 390 $ (150) $ 1‚896 Selling and administrative expenses 1‚110 555 405
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accrual-basis income statement revealed the following data: Sales $1‚200‚000 Cost of goods sold $800‚000 selling and administrative expenses $250‚000 Depreciation expense $70‚000 Income taxes $30‚000 Dividends declared and paid during 19X2 $100‚000 ABC purchased $100‚000 of equipment for cash on August 14. (There was no interest expense.) I. An overall risk profile of the company based on current economic and industry issues that it may be facing. II. Current company
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families‚ and the local community. The weather had been beautiful‚ the referees had been fair‚ and the local hotels and restaurants had profited from the influx of people. Nevertheless‚ Rivaldo knew that the Craddock Cup was in trouble. Tournament expenses continued to rise‚ while corporate sponsorships remained difficult to obtain. CYSL had founded the Craddock Cup‚ in part‚ to fund a field-acquisition program for the league‚ with the expectation that the tournament would generate at least $6‚000
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Debra J. Lawrence LA6525017 Management 190-SP Entrepreneurship Business Plan BUSINESS PLAN Buster’s Retail Store 1501 Maple St P.O. Box 2534 Tacoma‚ Washington 98453 * INTRODUCTION * DESCRIPTION * PURPOSE * OWNER/EMPLOYEES * FINANCIALS * SALES FORCAST * PRO FORMA STATEMENT * MARKETING * OPERATIONS * LEGAL/SUNDRY * MAJOR CHALLENGES Introduction and brief description of the venture a. Buster’s is currently a small store operating
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KANSAS CITY ZEPHYRS BASEBALL CLUB: A BASEBALL ACCOUNTING DISPUTE The controversy between the owners and players concerning how to account the expenses is crucial to understand if the company could be profitable and then able to meet players’ requirements. In this case three problems are under the scrutiny of the arbiter: roster depreciation‚ player compensation and the transfer pricing of related party operation‚ thus issues regarding the stadium cost. Players and owners are struggling against
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of goods | 185 000 | Depreciation – office equipment | 12 000 | Depreciation – vehicles | 8 000 | Other operating expenses | 25 000 | Administrative expenses | 10 000 | Distribution expenses | 15 000 | Interest paid | 12 000 | Salaries and wages (50% admin‚ 50% distribution) | 30 000 | Income tax expense | 29 000 | | | | - | IFNS 401‚ FACC412‚ FACC 403 and FINREP 411: 2009 Mod 1‚ SUPP Additional information
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Introduction to budget A budget is a financial plan for business‚ prepared in advance. It is defined by cima as ‘a plan expressed in money’. Cash flow forecasting is the process of estimating cash inflows and cash outflows over a period of time‚ usually for a period of 1 year. Cash Budget is the process of estimating cash inflows and cash outflows over a period of time‚ usually prepared monthly. Cash flows is the amount of money flowing into and out of a business over a period of time. Cash inflows
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Xyberspace Consulting‚ Inc. Laura Barnes finished her chicken fajita and looked out upon Town Lake‚ shimmering under the fierce Texas sun. She had recently relocated to Austin from Silicon Valley to head up the Accounting Department for Xyberspace‚ a rapidly growing technology-consulting firm. Only two weeks on the job‚ she was being asked to resolve a controversy within the company. The controversy centered on the allocation of the costs associated with the company’s Training and Education Service
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