Identify and explain the deficiencies in the statement prepared by the company’s accountant.

Identify and explain the deficiencies in the statement prepared by the company’s accountant.

Week 1 Assignment

Exercise 3-18 p. 152

The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventories. The December 31, 2011, balance sheet revealed the following:

Required:

Determine the following 2011 balance sheet items: 

Exercise 3-20 p. 152

Most decisions made by management impact the ratios analysts use to evaluate performance. Indicate (by letter) whether each of the actions listed below will immediately increase (I), decrease (D), or have no effect (N) on the ratios shown. Assume each ratio is less than 1.0 before the action is taken. 

Judgment Case 3-5 p. 161

You recently joined the internal auditing department of Marcus Clothing Corporation. As one of your first assignments, you are examining a balance sheet prepared by a staff accountant

Required:

Identify and explain the deficiencies in the statement prepared by the company’s accountant. Include in your answer items that require additional disclosure, either on the face of the statement or in a note.