Scott Herndon Case Summary

operating results (see Exhibit 1). He was pleased to see that sales and net income were

7. Distribution network Contracted Support standard out is $50,830, actual output is $50,460. This is a favorable variance of -$370. This is a selling expense that is lower due to lower sales. 8. Administrative Salaries standard output $170,000, actual output is $171,000. This is an unfavorable variance of $1000. This increase is due to the Competition Bikes efforts to increase sales. Overtime was authorized to work on advertising campaign. 9. Executive Compensation standard output is $220,000, actual output is $218,000. This is a favorable variance of -$2000. This variance is due to an executives not taking a bonus due to lower sales. 10. Employment taxes standard output $29,835, actual output $29758. This is a favorable variance of -$77. This variance is due to an employee furlough because of low sales.

MTI is experiencing a net loss in 2010. The net income has fluctuated significantly from 2009 to 2010, thus the net income or operating profit are not appropriate bases to determine materiality on.

First, raw data will be presented based on the findings found on Hertz’s 10-K annual form, as well as diving further into specific key ratios following the raw data.

What were the factors that caused actual quarterly income to be less than budgeted? What was the quantitative effect of each of these factors?

Some of the significant changes I found on the income sheet were revenue which decreased by 8 million dollars in 2015 compared to 2014. SG&A expenses increased by .9% for the year. How-ever gross profit decreased by .3% in 2015. Also net income for the year decreased by -2.5% per-cent.

If, at year end, 2 months have elapsed, what adjusting entry do you record? 2,000 A. Prepaid Legal Expense Legal Expense 2,000 2,000 B. Legal Expense Prepaid Legal Expense 2,000 Legal Expense 3,000 C. Prepaid Legal Expense 3,000 12,000 D. Prepaid Legal Expense Cash 12,000 [10]BASIC BANK10 - COAE 010 On September 1, your firm incurs a routine $82 expense, mistakenly recording it as follows: Office Expense Accounts Payable 28 28

The cash flow situation started falling from the end of year 12. The company should have known from this.

With reference to the financial ratios of HTC in Exhibit 1a, over five years (2004 to 2008), its average net profit margin was 18.8%, return on assets 34.2%, and return on equity

Fraser, L. M., & Ormiston, A. (201). Understanding financial statements (9th ed.). Upper Saddle River, NJ: Prentice Hall.

The largest percentage decrease on Lockheed Martin’s income statement is ‘Other Operating Expense’, or the ‘Other Unallocated’ ac-count. This account includes FAS/CAS adjustment (Non-GAAP pension plans measures specifically allowed to defense contractors and U.S. government agencies), stock-based compensation, and other costs. A positive number here represents an offset between the GAAP FAS pension expense account and the Non-GAAP CAS pension e-pense account, which lowered the cost of pensions payable, as well as a profit in operations other than the five major business segments.

April year-to-date recurring NOI was $192.2 Million (M), favorable to budget by $26.6M, and favorable to FY15 year-to-date by $22.8M

The net income was negative from 1989 to 1991. The net income is negative due to the depreciation costs. Operating

Total profit show a positive increase from 18% in 2013 to 31% in 2015, far reaching the brothers’ preference of $1.1 M in 2015, Appendix 3 showed $1.4 M net profit

The data from the report present that FPH’s performance in financial year 2014 is excellent. The company has maintained the rising trend of operation revenue. The operating profit is reported to be $623.4 million. This number is 12% higher than prior financial year. Additionally, the net profit after tax was 97.1million, which has an increase of 26% on previous year.