Explain how assets, liabilities and net worth fit together.
Discussion Post Explain how assets, liabilities and net worth fit together.
Tag: liabilities
Identify three other procedures Johnson is likely to perform specifically for the pur- pose of identifying undisclosed contingencies to help her obtain evidence about the presentation audit objective.
Elizabeth Johnson, CPA, has completed the audit of notes payable and other liabilities for Valley River Electrical Services and now plans to audit contingent liabilities and commitments. a. Distinguish between contingent liabilities and commitments and explain why both are important in an audit. b. Identify three useful audit procedures for uncovering contingent liabilities that Johnson […]
What is your conclusion about the financial statements if the audit findings are not corrected by Westmoreland management before you issue the audit report?
The following items were discovered during the December 31, 2019, audit of the financial statements of Westmoreland Corporation: 1. The company’s financial statements did not include an accrual for bonuses earned by senior management in 2019 but payable in March 2020. The aggregate bonus amount was $125,000. 2. Equipment originally costing $725,000 that was fully […]
Explain the determinants of net working capital and the cash conversion cycle. How can these strategies be used in Saudi Arabian companies? Why is working capital so important to a firm when the presence of credit and leverage tend to be utilized more? What advantage does a highly liquid firm have over a highly leveraged firm? Explain.
Working capital management involves managing the firm’s liquidity, which—in turn—involves managing the firm’s investments in current assets and in the use of current liabilities. Explain the determinants of net working capital and the cash conversion cycle. How can these strategies be used in Saudi Arabian companies? Why is working capital so important to a firm […]
Home Depot, a home improvement supply store, issued $2 billion in debt in late 2016. What is the main difference between debt and other liabilities, like accounts payable?
1. Increased leverage allows companies to control more assets and increase their ROE. What’s bad about leverage? A. It reduces productivity, which can decrease overall ROE. B. Leverage-based profits are not cash-based and are ignored by finance. C. Leverage multiplies losses, too, as it increases a company’s risk D. There is nothing bad about leverage—using […]
Explain why they are contracting out these services and mention the pros and cons if they decide to transport their good/services internally.
1.From your experience and by conducting research online and/or in person and explain why an organization should outsource their transportation activities. Provide an example of an organization within Jacksonville, FL who is currently contracting out their transportation services. Explain why they are contracting out these services and mention the pros and cons if they decide […]
Why do most investors prefer to hold a diversified portfolio of securities as opposed to placing all of their wealth in a single asset?
1- Why do most investors prefer to hold a diversified portfolio of securities as opposed to placing all of their wealth in a single asset? Given the following financial data, compute: a. Return on equity. b. Quick ratio. c. Long-term debt to equity. d. Fixed-charge coverage. Assets: Cash $ 2,500 Accounts receivable 3,000 Inventory 6,500 […]
What is the value of the investment today? What is the interest on interest earned on this investment?
Finance Question A company had cash and marketable securities worth $200,000 accounts payables worth $51,000, inventory of $1,501,500, accounts receivables of $5,288,128, short-term notes payable worth $220,000, other current liabilities of 100,000, and other current assets of $121,800. Calculate the company net working capital and describe how managers manage the firm working capital. Your parents […]
What was Tropical Clinics dollar growth in assets during 2021? What was Tropical Clinics growth rate in assets during 2021? What was Tropical Clinics growth in equity?
Answer question 1 and 2 showing your calculations / formulas. Assignments submitted without calculations will receive a zero grade. Tropical Clinic had total assets of $500,000 and an equity balance of $350,000 at the end of 2020. At the end of 2021, Tropical Clinic had $570,000 in assets and $375,000 in equity. What was Tropical […]
Disruptive technologies: when do firm capabilities become liabilities, and vice versa? Discuss
Disruptive technologies Disruptive technologies: when do firm capabilities become liabilities, and vice versa?