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 Topic: just started and stuck !! ( Topic Closed)
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graymoss27
Newbie
Joined: 02 Jul 2010
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Posts: 6
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| Posted: 05 Jul 2010 at 04:03 | IP Logged
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"Fenco Corporation's stock price recently collapsed on
news that its chief financial officer resigned. It seems
the company had deliberately failed to follow generally
accepted principles in an attempt to support a 30% income
growth rate. The company announced that it would be
restating the 20X7 results. Information about Fenco's
financial condition and stock price follow:
"
Reported Annual Net Income Reported Assets
ReportedLiabilities Reported Stockholders' Equity
Stock Price Per Share
Dec. 31, 20X4 &n bsp; $25,00,000 $76,00,000
$38,00,000 $38,00,000 $20.20
Dec. 31, 20X5 &n bsp; 32,75,000 98,04,000
27,29,000 70,75,000 35.00
Dec. 31, 20X6 &n bsp; 43,23,000 1,36,27,560
22,29,560 1,13,98,000 60.75
Dec. 31, 20X7 &n bsp; 55,76,670 1,89,42,308
19,67,638 1,69,74,670 98.90
Jan. 31, 20X8 n/a n/a n/a n/a
21.50
"The following information is necessary to correct 20X7's
data.
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"As of December 31, 20X7, Fenco's CFO withheld adjusting
entries for accruals relating to wages, utilities, and
similar items. The total of such items amounted to
$855,000.
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"During the year, Fenco presold certain services to its
clients. All such sales were booked as revenues, even
though $625,000 had not been ""earned"" as of the end of
20X7.
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"Fenco purchased $3,000,000 of equipment on July 1, 20X7.
These assets had a 5-year life and no salvage value.
Fenco neglected to depreciate these assets during 20X7.
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"Fenco began 20X7 with $50,000 in a Prepaid Rent account.
The rent related to 20X7, but no adjusting entry was
recorded in this account during 20X7.
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"Fenco offered customer rebates for services delivered in
20X7. As of the end of 20X7, Fenco owes $135,000 in
rebates. The rebates will not be processed before
February, 20X8. The CFO indicated that no entry was
necessary before actual payment.
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(a) Determine the correct amounts to report for 20X7
(net income, and assets, liabilities, and equity). &nbs p; &nbs p; &nbs p;
(b) Is the collapse in stock price justified, and
what pressures might a CFO face to participate in a
scheme to manipulate income? ; ; ;
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now!now!now!
Regular
Joined: 06 May 2010
Online Status: Offline
Posts: 119
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| Posted: 09 Jul 2010 at 14:39 | IP Logged
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Please ask in the main FAR section at the top portion of the page - it seems no one visits these sections down at the very bottom.
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indian2020
Newbie
Joined: 27 Aug 2010
Location: India
Online Status: Offline
Posts: 2
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| Posted: 27 Aug 2010 at 07:24 | IP Logged
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I'm sorry, but if she is telling you who she likes and who she hates you
are definitely in "the friend zone" This can be a good thing though,
don't get discouraged. This means she trusts you, and the foundation for
a relationship is trust, so you've got that going for you. From what
you've told me it doesn't sound like she likes you, but once you've
decided how you feel about her then you can make a move if that is what
you so choose. If you like her then start flirting with her, you have to
opportunity coming up so if you know that you like her before you go on
this trip (or even during) then make an effort to talk to her, hang out
with her, and just be around her. There you go, good luck
________________________________
Accident Cover | Life Cover
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