Valuation of inventory

Assignment Help Corporate Finance
Reference no: EM1348178

1. Accounts officers at Xerox corporation discovered that significant errors have been made in the valuation of inventory and are worried that it might have significant impact on the net income and earnings per share. What are the possible top three effects of the errors on net income? What could have been the top two reasons behind incorrect valuation of the inventory?

2.The net income of Reliable Provision company decreased sharply during 2007. Clay Rollins, owner of the store, anticipates the need for a bank loan in 2008. Late in 2007, he instructed the accountant to record a $70,000 sale of recreational gear to the Smith family, even though the goods will not be shipped from the manufacturer until January 2008. Rollins told the accountant not to make the following adjusting entries:

Salary owed to employees: $1,000

Expired prepaid insurance: $500

Is income overstated or understated? Why did Rollins take these actions? Are they ethical? Give reasons for your answer. As a friend, what advice would you give the accountant?

Reference no: EM1348178

What is relative internal weight on underprivileged group

What is the net present value (NPV) of the project? Does the project satisfy the Kaldor-Hicks criterion and what is the relative internal weight on the underprivileged group?

Show the journal entry to record the equipment purchase

Compute the present value of the note, rounded to the nearest dollar, using Southtowns typical interest rate of 6 percent. Show the journal entry to record the equipment purch

Explain the difference between total risk and market risk

Explain the difference between total risk, diversifiable risk, and market risk. How might the desire for diversification of individual retirement funds affect the structure of

Develop a budget estimate for effort

Develop a schedule, including picking up the stakes, printing the signs and assembling them. Present this schedule as a Gannt Chart and when should you be through, if you star

Compute the four liquidity ratio for doctors smith and brown

Using the data on pages 373 and 374 in your textbook (Baker & Baker, 3rd Edition), compute the 4 liquidity ratios for Doctors Smith and Brown. What do the liquidity ratios m

Calculate the projects irr and npv

The initial investment in working capital is $2,000,000. Note that the company will terminate the project in year six. Then calculate the project's IRR and NPV if the project

State the appropriate null and alternative hypotheses

State the appropriate conclusion (Reject the null hypothesis, there is not significant evidence that the mean traveltime is less than 25 minutes. or Reject the null hypothesis

Calculate the standard deviation of returns

Calculate the expected return over the 4 year period of each of the three alternatives and calculate the standard deviation of returns over the 4 year period for each of the t


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd