Chapter 3 ACT301
Discussion and response
Please answer the following discussion question and write a response to the other student. In
a positive way and directly at them. The other student post can also be used as an example
on how to write yours but of course in your own words and differently.
All chapter resources are attached and videos are below
Video https://youtu.be/xiwQh5E7JWQ
Video 2 https://youtu.be/iioRjTa2B4M
Problem adopted from Kieso Textbook 17e
Identify and discuss the weaknesses in classification and disclosure in
the single-step income statement above. You should explain why these
treatments are weaknesses and what the proper presentation of the
items would be in accordance with GAAP.
As an audit partner for Grupo and Rijo, you are in charge of reviewing
the classification of unusual items that have occurred during the
current year. The following material items have come to your attention.
1. A merchandising company incorrectly overstated its ending
inventory 2 years ago. Inventory for all other periods is correctly
computed.
2. An automobile dealer sells for $137,000 an extremely rare 1930 S
type Invicta which it purchased for $21,000 10 years ago. The
Invicta is the only such display item the dealer owns.
3. A drilling company during the current year extended the
estimated useful life of certain drilling equipment from 9 to 15
years. As a result, depreciation for the current year was materially
lowered.
4. A retail outlet changed its computation for bad debt expense from
1% to ½ of 1% of receivables because of changes in its customer
clientele.
5. A mining concern sells a foreign subsidiary engaged in uranium
mining, although it (the seller) continues to engage in uranium
mining in other countries.
6. A steel company changes from the average-cost method to the
FIFO method for inventory costing purposes.
7. A construction company, at great expense, prepared a major
proposal for a government loan. The loan is not approved.
8. A water pump manufacturer has had large losses resulting from a
strike by its employees early in the year.
9. Depreciation for a prior period was incorrectly understated by
$950,000. The error was discovered in the current year.
10.
A large sheep rancher suffered a major loss because the
state required that all sheep in the state be killed to halt the
spread of a rare disease. Such a situation has not occurred in the
state for 20 years.
11.
A food distributor that sells wholesale to supermarket chains
and to fast-food restaurants (two distinguishable classes of
customers) decides to discontinue the division that sells to one of
the two classes of customers. This represents a strategic shift in
the company’s business.
This is another students discussion please use as example but do not
answer same questions she did, pick something new please
1. A merchandising company incorrectly overstated its ending
inventory 2 years ago. Inventory for all other periods is correctly
computed.
This should be recorded as a Prior Period adjustment in the year the
error was founded as a Correction of Error. The weakness is that the
ending inventory balance is carried forth, so while all other periods are
correct, the inventory is based on an incorrect ending balance from two
years ago. The weakness lies in the process of calculating ending
inventory. Income statements from prior years would need to be
restated, according to our book on page 20 of Chapter 4. (Kieso,
02/2019).
8. A water pump manufacturer has had large losses resulting from a
strike by its employees early in the year.
The strike is considered unusual and infrequent, and should be
disclosed either in the income statement or in the notes of the financial
statements, according to our book on page 12 in Chapter 4 (Kieso,
02/2019). Since the loss is categorized as large, or material, then it is
shown in the Other expenses section of the income statement. The
weakness is that this loss reduced net income, and could distort income
for that year due to 1 material, unusual and infrequent event.
(Kieso, 02/2019) Kieso, D. E., Weygandt, J. J., Warfield, T. D. (2019).
Intermediate Accounting, 17th Edition. [VitalSource Bookshelf
10.2.0]. Retrieved from vbk://9781119503682
Chapter 5 ACT301
Discussion and response
Please answer the following discussion question and write a response to the other student. In
a positive way and directly at them. The other student post can also be used as an example
on how to write yours but of course in your own words and differently.
All chapter resources are attached and videos are below
Video https://youtu.be/YZyBSU6YdmM
Video 2 https://youtu.be/mZBjsIYrLvM
Video 3 https://youtu.be/X17bUV-EfIM
After carefully reviewing this week’s lecture materials (videos, PPT
lectures, and articles), please respond to the following question(s):
Problem adopted from Kieso Textbook 17e
The financial statements of P&G are presented in Appendix B. The
company’s complete annual report, including the notes to the financial
statements, is available online.
Refer to P&G’s financial statements and the related information in the
annual report to answer one or more of the following questions.
1. What alternative formats could P&G have adopted for its balance
sheet? Which format did it adopt?
2. Identify the various techniques of disclosure P&G might have
used to disclose additional pertinent financial information. Which
technique does it use in its financials?
3. In what classifications are P&G’s investments reported? What
valuation basis does P&G use to report its investments? How
much working capital did P&G have on June 30, 2017? On June
30, 2016?
4. What were P&G’s cash flows from its operating, investing, and
financing activities for 2017? What were its trends in net cash
provided by operating activities over the period 2015–2017?
Explain why the change in accounts payable and in accrued and
other liabilities is added to net income to arrive at net cash
provided by operating activities.
5. Compute P&G’s (1) current cash debt coverage, (2) cash debt
coverage, and (3) free cash flow for 2017. What do these ratios
indicate about P&G’s financial condition?
Note: Please post your original response by Wednesday and respond to
at least 2 peers by Sunday. In addition, follow APA guidelines and cite
at least 1 resource to support your discussions; be sure to include a
reference section at the end of your post.
This is another students discussion please use as example but do not
answer same questions she did, pick something new please
1. What alternative formats could P&G have adopted for its balance sheet?
Which format did it adopt?
P&G adopted report format, which lists Assets above Liabilities in the balance
sheet. According to the textbook (Kieso, 02/2019), the alternative would be to
list the Assets and Liabilities next to each other, but this takes up more page
space. Additionally, some balance sheets can be shown to deduct current assets
by current liabilities to calculate and show working capital. P&G does not do
this in their balance sheet.
(Kieso, 02/2019) Kieso, D. E., Weygandt, J. J., Warfield, T. D. (2019).
Intermediate Accounting, 17th Edition. [VitalSource Bookshelf
10.2.0]. Retrieved on November 1, 2022 from vbk://9781119503682
less
Book Information
https://login.vitalsource.com/?redirect_uri=https%3A%2F%2Fbookshelf.vitalsource.com%2Freader%2Fb
ooks%2F9781119503682%2Fepubcfi%2F6%2F74%5B%253Bvnd.vst.idref%253Da02%5D%21%2F4%5Ba0
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username [email protected]
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Chapter needed
Week 3 chapter 4
Week 4 chapter 18
Week 5 Chapter 5
Purchase answer to see full
attachment
Discussion and response
Please answer the following discussion question and write a response to the other student. In
a positive way and directly at them. The other student post can also be used as an example
on how to write yours but of course in your own words and differently.
All chapter resources are attached and videos are below
Video https://youtu.be/xiwQh5E7JWQ
Video 2 https://youtu.be/iioRjTa2B4M
Problem adopted from Kieso Textbook 17e
Identify and discuss the weaknesses in classification and disclosure in
the single-step income statement above. You should explain why these
treatments are weaknesses and what the proper presentation of the
items would be in accordance with GAAP.
As an audit partner for Grupo and Rijo, you are in charge of reviewing
the classification of unusual items that have occurred during the
current year. The following material items have come to your attention.
1. A merchandising company incorrectly overstated its ending
inventory 2 years ago. Inventory for all other periods is correctly
computed.
2. An automobile dealer sells for $137,000 an extremely rare 1930 S
type Invicta which it purchased for $21,000 10 years ago. The
Invicta is the only such display item the dealer owns.
3. A drilling company during the current year extended the
estimated useful life of certain drilling equipment from 9 to 15
years. As a result, depreciation for the current year was materially
lowered.
4. A retail outlet changed its computation for bad debt expense from
1% to ½ of 1% of receivables because of changes in its customer
clientele.
5. A mining concern sells a foreign subsidiary engaged in uranium
mining, although it (the seller) continues to engage in uranium
mining in other countries.
6. A steel company changes from the average-cost method to the
FIFO method for inventory costing purposes.
7. A construction company, at great expense, prepared a major
proposal for a government loan. The loan is not approved.
8. A water pump manufacturer has had large losses resulting from a
strike by its employees early in the year.
9. Depreciation for a prior period was incorrectly understated by
$950,000. The error was discovered in the current year.
10.
A large sheep rancher suffered a major loss because the
state required that all sheep in the state be killed to halt the
spread of a rare disease. Such a situation has not occurred in the
state for 20 years.
11.
A food distributor that sells wholesale to supermarket chains
and to fast-food restaurants (two distinguishable classes of
customers) decides to discontinue the division that sells to one of
the two classes of customers. This represents a strategic shift in
the company’s business.
This is another students discussion please use as example but do not
answer same questions she did, pick something new please
1. A merchandising company incorrectly overstated its ending
inventory 2 years ago. Inventory for all other periods is correctly
computed.
This should be recorded as a Prior Period adjustment in the year the
error was founded as a Correction of Error. The weakness is that the
ending inventory balance is carried forth, so while all other periods are
correct, the inventory is based on an incorrect ending balance from two
years ago. The weakness lies in the process of calculating ending
inventory. Income statements from prior years would need to be
restated, according to our book on page 20 of Chapter 4. (Kieso,
02/2019).
8. A water pump manufacturer has had large losses resulting from a
strike by its employees early in the year.
The strike is considered unusual and infrequent, and should be
disclosed either in the income statement or in the notes of the financial
statements, according to our book on page 12 in Chapter 4 (Kieso,
02/2019). Since the loss is categorized as large, or material, then it is
shown in the Other expenses section of the income statement. The
weakness is that this loss reduced net income, and could distort income
for that year due to 1 material, unusual and infrequent event.
(Kieso, 02/2019) Kieso, D. E., Weygandt, J. J., Warfield, T. D. (2019).
Intermediate Accounting, 17th Edition. [VitalSource Bookshelf
10.2.0]. Retrieved from vbk://9781119503682
Chapter 5 ACT301
Discussion and response
Please answer the following discussion question and write a response to the other student. In
a positive way and directly at them. The other student post can also be used as an example
on how to write yours but of course in your own words and differently.
All chapter resources are attached and videos are below
Video https://youtu.be/YZyBSU6YdmM
Video 2 https://youtu.be/mZBjsIYrLvM
Video 3 https://youtu.be/X17bUV-EfIM
After carefully reviewing this week’s lecture materials (videos, PPT
lectures, and articles), please respond to the following question(s):
Problem adopted from Kieso Textbook 17e
The financial statements of P&G are presented in Appendix B. The
company’s complete annual report, including the notes to the financial
statements, is available online.
Refer to P&G’s financial statements and the related information in the
annual report to answer one or more of the following questions.
1. What alternative formats could P&G have adopted for its balance
sheet? Which format did it adopt?
2. Identify the various techniques of disclosure P&G might have
used to disclose additional pertinent financial information. Which
technique does it use in its financials?
3. In what classifications are P&G’s investments reported? What
valuation basis does P&G use to report its investments? How
much working capital did P&G have on June 30, 2017? On June
30, 2016?
4. What were P&G’s cash flows from its operating, investing, and
financing activities for 2017? What were its trends in net cash
provided by operating activities over the period 2015–2017?
Explain why the change in accounts payable and in accrued and
other liabilities is added to net income to arrive at net cash
provided by operating activities.
5. Compute P&G’s (1) current cash debt coverage, (2) cash debt
coverage, and (3) free cash flow for 2017. What do these ratios
indicate about P&G’s financial condition?
Note: Please post your original response by Wednesday and respond to
at least 2 peers by Sunday. In addition, follow APA guidelines and cite
at least 1 resource to support your discussions; be sure to include a
reference section at the end of your post.
This is another students discussion please use as example but do not
answer same questions she did, pick something new please
1. What alternative formats could P&G have adopted for its balance sheet?
Which format did it adopt?
P&G adopted report format, which lists Assets above Liabilities in the balance
sheet. According to the textbook (Kieso, 02/2019), the alternative would be to
list the Assets and Liabilities next to each other, but this takes up more page
space. Additionally, some balance sheets can be shown to deduct current assets
by current liabilities to calculate and show working capital. P&G does not do
this in their balance sheet.
(Kieso, 02/2019) Kieso, D. E., Weygandt, J. J., Warfield, T. D. (2019).
Intermediate Accounting, 17th Edition. [VitalSource Bookshelf
10.2.0]. Retrieved on November 1, 2022 from vbk://9781119503682
less
Book Information
https://login.vitalsource.com/?redirect_uri=https%3A%2F%2Fbookshelf.vitalsource.com%2Freader%2Fb
ooks%2F9781119503682%2Fepubcfi%2F6%2F74%5B%253Bvnd.vst.idref%253Da02%5D%21%2F4%5Ba0
2-body-0001%5D&brand=bookshelf.vitalsource.com
username [email protected]
Password [email protected]
Chapter needed
Week 3 chapter 4
Week 4 chapter 18
Week 5 Chapter 5
Purchase answer to see full
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