Question

The following is the complete set of financial statements prepared by Oberlin Corporation:
Statement of Income and Retained Earnings
For the Fiscal Year Ended August 31, 2016
Balance Sheet
August 31, 2016
Continue to the next page.
Notes to Financial Statements:
1. Goodwill is not being reviewed for impairment. The goodwill was acquired in 2016
2. The amount, Due to Grant Inc. is contingent upon the outcome of a lawsuit which is currently pending. The amount of loss, if any, is not expected to exceed $300,000.
Required:
Identify and explain the deficiencies in the presentation of Oberlin’s financial statements. There are no arithmetic errors in the statements. Organize your answer as follows:
1. Deficiencies in the statement of income and retained earnings
2. Deficiencies in the balance sheet
3. General comments
If an item appears on both statements, identify the deficiencies for each statement separately.


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  • CreatedOctober 05, 2015
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