Financial Forensics Quiz 1: 7 July 2024 (May 2024 term)

D. Carson and F. Leggatt formed a partnership on June 1 to operate a shoe store. Carson contributed $50,000 cash and Leggatt contributed $50,000 worth of shoe inventory.
During the month of June, the following transactions took place:
a. Additional shoe inventory was purchased at a cost of $24,000 cash
b. Total cash sales for the month were $31,000. The inventory that was sold had a cost of $15,000 c. Carson withdrew $6,200 of cash drawings. Leggatt withdrew only $3,700 of cash drawings. d. The partnership borrowed $50,000 from the Third National Bank
e. Land and buildings were purchased at a cash cost of $25,000 and $50,000 respectively. Based on the above text answer the given sub questions:

What is the cash balance of the company as of June 1.

D. Carson and F. Leggatt formed a partnership on June 1 to operate a shoe store. Carson contributed $50,000 cash and Leggatt contributed $50,000 worth of shoe inventory.
During the month of June, the following transactions took place:
a. Additional shoe inventory was purchased at a cost of $24,000 cash
b. Total cash sales for the month were $31,000. The inventory that was sold had a cost of $15,000 c. Carson withdrew $6,200 of cash drawings. Leggatt withdrew only $3,700 of cash drawings. d. The partnership borrowed $50,000 from the Third National Bank
e. Land and buildings were purchased at a cash cost of $25,000 and $50,000 respectively. Based on the above text answer the given sub questions:

What is the Total Asset of the company as of June 30.

The Hosmer Company had June sales of $275,000. The cost of goods sold was $164,000 and other cash expenses were:
Rent: $3,300
Salaries: $27,400
Taxes: $1,375
Other: $50,240
Based on the above data, answer the given subquestions

What were the company’s Revenues

The Hosmer Company had June sales of $275,000. The cost of goods sold was $164,000 and other cash expenses were:
Rent: $3,300
Salaries: $27,400
Taxes: $1,375
Other: $50,240
Based on the above data, answer the given subquestions

What were the company’s Expenses

Kids' n Caboodle, a Children's clothing store, had the following receipts and disbursements for its first year of operations:

Receipts

Disbursements

The store has no accounts receivables (it accepts only cash or bank cards for payment). At year-end, an employee had earned INR 2,000, which the store had not paid yet. Also, at year-end, the store had not paid its most recent utility bill, which totaled INR 10,000.

(Mention the answer as negative followed by the absolute value if any one of the figures is/are negative, e.g., -1000)

Based on the above data, answer the given subquestions

What is the cash flow from activities related to Operations?

Kids' n Caboodle, a Children's clothing store, had the following receipts and disbursements for its first year of operations:

Receipts

Disbursements

The store has no accounts receivables (it accepts only cash or bank cards for payment). At year-end, an employee had earned INR 2,000, which the store had not paid yet. Also, at year-end, the store had not paid its most recent utility bill, which totaled INR 10,000.

(Mention the answer as negative followed by the absolute value if any one of the figures is/are negative, e.g., -1000)

Based on the above data, answer the given subquestions

What is the cash flow from activities related to Investment?

Kids' n Caboodle, a Children's clothing store, had the following receipts and disbursements for its first year of operations:

Receipts

Disbursements

The store has no accounts receivables (it accepts only cash or bank cards for payment). At year-end, an employee had earned INR 2,000, which the store had not paid yet. Also, at year-end, the store had not paid its most recent utility bill, which totaled INR 10,000.

(Mention the answer as negative followed by the absolute value if any one of the figures is/are negative, e.g., -1000)

Based on the above data, answer the given subquestions

What is the cash flow from activities related to Financing?

Kids' n Caboodle, a Children's clothing store, had the following receipts and disbursements for its first year of operations:

Receipts

Disbursements

The store has no accounts receivables (it accepts only cash or bank cards for payment). At year-end, an employee had earned INR 2,000, which the store had not paid yet. Also, at year-end, the store had not paid its most recent utility bill, which totaled INR 10,000.

(Mention the answer as negative followed by the absolute value if any one of the figures is/are negative, e.g., -1000)

Based on the above data, answer the given subquestions

What is the total change in cash balance of the company at the end of the year?

The January 1 balance sheet of the Marvin company, an unincorporated business, is as follows:

The following transactions took place in January:
• Jan 4 – Goods were sold for INR 12,000 which had a cost of INR 7,000
• Jan 6 – To Increase inventory, Marvin placed an order with Star company for goods that would cost INR 7,000
• Jan 8 – Marvin received the goods ordered from star and agreed to pay INR 7,000 in 30 days • Jan 11 – Goods costing INR 1,500 was sold for INR 2,500 in cash
• Jan 16 – Goods costing INR 2,000 was sold for INR 3,400 on a 30-day credit
• Jan 26 - Marvin paid employees for the month INR 4,200 in cash
• Jan 29 - Purchased land for INR 20,000 in cash
• Jan 31 - Marvin purchased a two-year insurance policy for INR 2,800 in cash
Based on the above text answer the given sub questions:

What is the Total asset of the company as of Jan 7^(th)

The January 1 balance sheet of the Marvin company, an unincorporated business, is as follows:

The following transactions took place in January:
• Jan 4 – Goods were sold for INR 12,000 which had a cost of INR 7,000
• Jan 6 – To Increase inventory, Marvin placed an order with Star company for goods that would cost INR 7,000
• Jan 8 – Marvin received the goods ordered from star and agreed to pay INR 7,000 in 30 days • Jan 11 – Goods costing INR 1,500 was sold for INR 2,500 in cash
• Jan 16 – Goods costing INR 2,000 was sold for INR 3,400 on a 30-day credit
• Jan 26 - Marvin paid employees for the month INR 4,200 in cash
• Jan 29 - Purchased land for INR 20,000 in cash
• Jan 31 - Marvin purchased a two-year insurance policy for INR 2,800 in cash
Based on the above text answer the given sub questions:

What is the retained earnings of the company as of Jan 16^(th)

The January 1 balance sheet of the Marvin company, an unincorporated business, is as follows:

The following transactions took place in January:
• Jan 4 – Goods were sold for INR 12,000 which had a cost of INR 7,000
• Jan 6 – To Increase inventory, Marvin placed an order with Star company for goods that would cost INR 7,000
• Jan 8 – Marvin received the goods ordered from star and agreed to pay INR 7,000 in 30 days • Jan 11 – Goods costing INR 1,500 was sold for INR 2,500 in cash
• Jan 16 – Goods costing INR 2,000 was sold for INR 3,400 on a 30-day credit
• Jan 26 - Marvin paid employees for the month INR 4,200 in cash
• Jan 29 - Purchased land for INR 20,000 in cash
• Jan 31 - Marvin purchased a two-year insurance policy for INR 2,800 in cash
Based on the above text answer the given sub questions:

What is the Total Asset of the company as of Jan 31^(st)

The Pierson Company purchased a two-year fire insurance policy, paying the $30,000 premium in October 2011. The policy was dated October 1, 2011, and expired on September 30, 2013. With respect to this policy, what were the expenses applicable to 2011, 2012, 2013 and what was the asset value of the insurance as of December 31, 2011, 2012 and 2013?
Based on the above data, answer the given subquestions

Expenses in 2011 _____.

The Pierson Company purchased a two-year fire insurance policy, paying the $30,000 premium in October 2011. The policy was dated October 1, 2011, and expired on September 30, 2013. With respect to this policy, what were the expenses applicable to 2011, 2012, 2013 and what was the asset value of the insurance as of December 31, 2011, 2012 and 2013?
Based on the above data, answer the given subquestions

Expenses in 2012 _____.

The Pierson Company purchased a two-year fire insurance policy, paying the $30,000 premium in October 2011. The policy was dated October 1, 2011, and expired on September 30, 2013. With respect to this policy, what were the expenses applicable to 2011, 2012, 2013 and what was the asset value of the insurance as of December 31, 2011, 2012 and 2013?
Based on the above data, answer the given subquestions

Expenses in 2013 _____.

The Pierson Company purchased a two-year fire insurance policy, paying the $30,000 premium in October 2011. The policy was dated October 1, 2011, and expired on September 30, 2013. With respect to this policy, what were the expenses applicable to 2011, 2012, 2013 and what was the asset value of the insurance as of December 31, 2011, 2012 and 2013?
Based on the above data, answer the given subquestions

Asset value as of 31^(st) December 2011 _____.

The Pierson Company purchased a two-year fire insurance policy, paying the $30,000 premium in October 2011. The policy was dated October 1, 2011, and expired on September 30, 2013. With respect to this policy, what were the expenses applicable to 2011, 2012, 2013 and what was the asset value of the insurance as of December 31, 2011, 2012 and 2013?
Based on the above data, answer the given subquestions

Asset value as of 31^(st) December 2012 _____.

The Pierson Company purchased a two-year fire insurance policy, paying the $30,000 premium in October 2011. The policy was dated October 1, 2011, and expired on September 30, 2013. With respect to this policy, what were the expenses applicable to 2011, 2012, 2013 and what was the asset value of the insurance as of December 31, 2011, 2012 and 2013?
Based on the above data, answer the given subquestions

Asset value as of 31^(st) December 2013 _____.

What is the cost of goods sold for the company given the following information:

A company purchased machinery worth ₹ 7,50,000 on January 2nd from a vendor. The company paid 50% of the amount in cash, and the remaining 50% was taken on credit from the vendor for 30 days. How many changes must be made to the balance sheet to account for this transaction?

Sold goods worth ₹ 86,000 for ₹ 98,000. A cash discount of 10% was offered to the customer if payment is settled immediately. The customer took advantage of the offer and transferred the amount immediately through internet banking. What will be the value of the sale?

Total salaries accrued for the month is ₹ 65,000, but only 50% of it was paid at the end of the month and the rest was outstanding. The expenses on salaries in the income statement for the month is _____

The Bee company shows the following account amounts:

Determine how much cash was generated from sales during 2010

Which of the following would not appear in the investing section of the statement of cash flows?

At the end of the financial period, how would an excess payment of taxes beyond its obligation be presented in the financial statements?

The owner of small business has asked you to prepare a statement that will show him where his firm's cash came from and how it was used this year. He gives you the following information based on the cash account in his general ledger:

In addition, the following is available from the company records

• Sales were INR 61,410 for the year
• Accounts Payable decreased by a net of INR 2,760 during the year
• Inventory balance remained constant throughout the year

Based on the above data, answer the given subquestions

What is the amount that was received as a part of the sales that was done previously and not as a part of this year?

The owner of small business has asked you to prepare a statement that will show him where his firm's cash came from and how it was used this year. He gives you the following information based on the cash account in his general ledger:

In addition, the following is available from the company records

• Sales were INR 61,410 for the year
• Accounts Payable decreased by a net of INR 2,760 during the year
• Inventory balance remained constant throughout the year

Based on the above data, answer the given subquestions

What is the cash flow from Investment activities?

The owner of small business has asked you to prepare a statement that will show him where his firm's cash came from and how it was used this year. He gives you the following information based on the cash account in his general ledger:

In addition, the following is available from the company records

• Sales were INR 61,410 for the year
• Accounts Payable decreased by a net of INR 2,760 during the year
• Inventory balance remained constant throughout the year

Based on the above data, answer the given subquestions

What is the cash flow from Operations?

The owner of small business has asked you to prepare a statement that will show him where his firm's cash came from and how it was used this year. He gives you the following information based on the cash account in his general ledger:

In addition, the following is available from the company records

• Sales were INR 61,410 for the year
• Accounts Payable decreased by a net of INR 2,760 during the year
• Inventory balance remained constant throughout the year

Based on the above data, answer the given subquestions

What is the cash flow from Financing activities?

The owner of small business has asked you to prepare a statement that will show him where his firm's cash came from and how it was used this year. He gives you the following information based on the cash account in his general ledger:

In addition, the following is available from the company records

• Sales were INR 61,410 for the year
• Accounts Payable decreased by a net of INR 2,760 during the year
• Inventory balance remained constant throughout the year

Based on the above data, answer the given subquestions

What is the cash balance at the end of the year?