Professional Simulation In this simulation, you are asked to address questions related to the statement of financial
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Professional Simulation In this simulation, you are asked to address questions related to the statement of financial position. Prepare responses to all parts.
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KWW Professional Simulation Statement of Financial Position Time Remaining 3 hours 10 minutes Directions Studios Your client, Lance Harvey, is preparing for a meeting with investors. He would like to provide appropriate Information about his company's financial position. Lance has provided the following accounts and balances at December 31, 2015, for Lance Harvey Company. Debit Credit Cash 50,000 Accounts Receivable (net) 38,500 Inventory 65,300 Equipment (net) 104,000 Patents 25,000 Notes and Accounts Payable 57,000 Non-Current Liabilities 100,000 Equity 125,800 282,800 282,800 Except for the following Items, all adjustments have been recorded in the accounts. 1. Cash Includes 200 petty cash and 20,000 In a fund designated for plant expansion in 2018. 2. The net accounts receivable is comprised of (a) accounts receivable 52,000 and (b) allowance for doubtful accounts 13,500. 3. Equipment had a cost of 132,000 and accumulated depreciation of 28,000. 4. Notes and Accounts Payable is comprised of the following: Accounts Payable 32,000, income Taxes Payable 3,000, and Note Payable 17,000, due June 30, 2016. 5. Non-current liabilities are 10-year bonds paying Interest at 9%, and maturing June 30, 2023. 6. Equity is comprised of Share Capital-Ordinary (1 par) 50,000, Share Capital-Premium 55,000, and Retained Earnings 20,900. Prepare a corrected classified statement of financial position for Lance Harvey Company at December 31, 2015. Directions o Lance received a call from a concerned Investor about the likelihood that Lance Harvey Company would declare bankruptcy. Compute the Altman Z-score and Interpret it for Lance in responding to this Investor. Sales for 2015 were 210,000; eamings before interest and taxes (EBIT) for 2015 is 14,000. The market value (MV) of equity for Lance Harvey Company is 225,000. Directions Stution Francia ent Barch Lance is proud of his reporting and disclosure practices. He provides the three primary financial statements along with a president's letter describing the company's accomplishments for the past year. He is wondering whether there are specific guidelines for presenting current and non-current assets and labilities, as well as the prescribed order and format for presenting items in the statement of financial position. Access the IFRS authoritative literature to advise Lance about these issues. (Provide text strings used in the search.) OMO
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Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
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Related Book For
Intermediate Accounting IFRS Edition
ISBN: 9781118443965
2nd Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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