Prepare the Audit planning memo using the RAMP methodology. Quon Queso Inc. Statement of Earnings For the
Question:
Prepare the Audit planning memo using the RAMP methodology.
Quon Queso Inc. Statement of Earnings For the period ended December 31, 2016 | |
Revenue | 547,500 |
COGS | 191,625 |
Gross Profit | 355,875 |
Expenses | |
Advertising Expense | 27,375 |
Insurance Expense | 2,500 |
Property Taxes | 5,000 |
General and administrative expenses | 16,425 |
Salary | 202,575 |
Depreciation expense | 28,900 |
EBIT | 73,100 |
Interest expense | 13,232 |
EBT | 59,868 |
Income Tax Expense | 17,960 |
Net Income | 41,907 |
Quon Queso Inc. Statement of Retained Earnings For the period ended December 31, 2016 | |
Balance, December 31, 2015 | 0 |
Net profit | 41,907 |
Dividends | 25,000 |
Balance, December 31, 2016 | 16,907 |
Exhibit 1 (continued)
Quon Queso Inc. Balance Sheet As at December 31, 2016 | |
Assets | |
Current | |
Cash | 11,232 |
Inventory | 20,000 |
Non-Current | |
Bulding, net | 393,100 |
Equipment, net | 108,000 |
Total | 532,332 |
Liabilities | |
Current | |
Accounts payable | 5,000 |
Short-term debt | 20,171 |
Non-current | |
Longterm Debt | 410,253 |
Share Holders Equity | |
Common Shares | 80,000 |
R.E | 16,907 |
Total L + S.E | 532,332 |
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura