a. Compute the following ratios for Crazy Eddie during the period 1984-1987. See balance sheet and income statement. (Show working) Gross profit ratio  Inventory Turnover  Day’s sales in inventory  Accounts receivable turnover  Day’s sales in accounts receivable  Accounts Payable Turnover Ratio  Long-Term Debt to Assets Ratio

In the normal course of performing their responsibilities, auditors often conduct audits or reviewsof the following:1. The computer operations of a large corporation to evaluate whether the internal controlsare likely to prevent misstatements in accounting and operating data.2. Financial statements for use by stockholders when there is an internal audit staff.3. A bond indenture agreement to make sure a company is following all requirements of thecontract.4. Internal controls at a casino to ensure the casino is in compliance with federal and stateregulations.5. Computer operations of a corporation to evaluate whether the computer center is beingoperated as efficiently as possible.6. Annual statements for the use of management.7. Operations of the IRS to determine whether the internal revenue agents are using theirtime efficiently in conducting audits.8. Statements for bankers and other creditors when the client is too small to have an auditstaff.9. Financial statements of a branch of…

We discussed a number of assertions about account balances, classes of transactions, and disclosures contained in financial statements. These assertions include existence and occurrence, rights and obligations, completeness, cutoff, valuation and disclosure.  When we gather audit evidence, we gather evidence to support financial statement assertions.    Required:   Describe how each of these assertions relates to Accounts Receivable. Conor & Evan, CPAs are the auditors for Mojito, Inc. In the course of the audit, Conor & Evan select a sample of Mojito’s customers from the Accounts Receivable subsidiary ledger and send letters to them asking for confirmation of the Accounts Receivable balances owed to Mojito, Inc. Describe which of the assertions will be supported by the evidence obtained from the confirmations sent to Mojito’s customers.  Explain how the evidence supports the assertion and, if it does not support the assertion, why not

The following is a statement in financial from president and CEO of Samba Bank on behalf of directors to Shareholders:   “As a result of strong liquidity position and its strategic direction, your bank’s medium to long term credit rating maintained as A (single A) whereas its short term rating remained as A-1 (A-One) as issued by JCR-VIS Credit rating Agency. These long and short term ratings, respectively, denote the low credit risk due to the adequate credit quality with reasonable protection…..”   Required: Explain in detail that how samba bank would have been able to achieve such high credit quality.