None Consultants notify management of Discount Pharmaceuticals that a stroke medication poses a potential health hazard. Counselindicates a product recall is probable and is estimated to cost the company $12.75 million.Required:How will this affect the company's income statement and balance sheet this period?Note: Enter your answers in dollars, not in millions (i.e., $5.5 million should be entered as $5,500,000). Amounts to be deductedshould be indicated by a minus sign.AssetsBalance SheetStockholders' EquityLiabilitiesCommon StockRetainedEarningsRevenuesIncome StatementExpensesNet Income

Income statement:The income statement is the statement or the record that is prepared by the company…

Answered: Consultants notify management of…

Business/Professional Ethics Directors/Executives/Acct

8th Edition

ISBN:9781337485913

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Chapter8: Subprime Lending Fiasco-ethics Issues

Section: Chapter Questions

Problem 8.1EC

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Consultants notify management of Discount Pharmaceuticals that a stroke medication poses a potential health hazard. Counsel indicates a product recall is probable and is estimated to cost the company $13.00 million. Required: How will this affect the company's income statement and balance sheet this period? Note: Enter your answers in dollars, not in millions (i.e., $5.5 million should be entered as $5,500,000). Amounts to be deducted should be indicated by a minus sign. Assets Balance Sheet Stockholders' Equity Liabilities Common Stock Retained Earnings Revenues Income Statement Expen
Consultants notify management of Discount Pharmaceuticals that a stroke medication poses a potential health hazard. Counsel indicates a product recall is probable and is estimated to cost the company $10.00 million. Required: How will this affect the company's income statement and balance sheet this period? Note: Enter your answers in dollars, not in millions (i.e., $5.5 million should be entered as $5,500,000). Amounts to be deducted should be indicated by a minus sign. Assets Balance Sheet Stockholders' Equity Liabilities Revenues Common Stock Retained Earnings Income Statement Expenses Net Income
Consultants notify management of Discount Pharmaceuticals that a stroke medication poses a potential health hazard. Counsel indicates that a product recall is probable and is estimated to cost the company $8 million. How will this affect the company’s income statement and balance sheet this period?
Consultants notified management of Goo Goo Baby Products that a crib toy poses a potential health hazard.Counsel indicated that a product recall is probable and is estimated to cost the company $5.5 million. How willthis affect the company’s income statement and balance sheet this period?
Consultants notified management of Goo Goo Baby Products that a crib toy poses a potential health hazard. Counsel indicated that a product recall is probable and is estimated to cost the company $3.3 million. How will this affect the company’s income statement and balance sheet this period?
Ethical Considerations. In the process of closing thecompany books, you encounter a problematic transaction. One of the company’s customers was invoicedtwice for the same project materials, resulting in a$1,000 overcharge. You immediately notify the controller, whose response is, “Let it go, it happens often.It’ll probably balance out on some future transaction.”What should you do now?
You have just been hired as a financial manager for BEE Inc. Management has provided you with the information below and has asked you to provide a brief explanation for each of the following questions. Your answer must be a minimum of one sentence and no longer than two or three sentences. One word answers or an answer of "good" or "bad" only will receive zero marks. 2021 2020 2019 Current ratio .99 1.32 1.69 Total debt ratio 0.540 0.495 0.489 Profit Margin 0.10 0.11 0.14 Inventory Turnover 2.60 3.14 4.18 a. Based on the results of the past three years, how is the company doing in regards to their ability to pay their short-term debts? Please refer to the specific ratio you would point out to management that backs up your answer. b. The benchmark industry average for the debt ratio is ,490. What does this mean for BEE Inc.? c. The benchmark industry average for the profit margin is .15. What advice would you give…
USM records $120,000 of sales in the month of December 2020. USM estimates that $10,000 of returns of December sales will eventually be returned. As of December 31, 2020, $2,000 of returns have been processed. Assuming zero balance in the refund liability account, what is the effect of the entry necessary at December 31 to record estimated returns? Omit the cost of sales entry. Group of answer choices: a,) Decrease revenues and increase liabilities for $8,000 b.) Decrease revenues and increase liabilities for $10,000 c.) Increase expenses and Increase Liabilities for $8,000 d.) Increase expenses and Increase Liabilities for $10,000 e.) None of the above
the supervisor tells you to change the aging category of a large account from over 120 days to current status and prepare a new invoice to the customer with the revised date and that agrees with the new category this will change the required allowance of uncollectible accounts from $180,000 to $135,000. Identify the key internal and external stakeholders. what are the negative impacts that can happen if you do not follow the instructions of the supervisor?
Do not copy from bartleby. Otherwisw i will give you dislike When DeSoto Water Works purchased equipment at the end of 2020 at a cost of $64,000, the company debited Buildings and credited Cash $64,000. The error was discovered in 2021. Prepare the journal entry DeSoto will use to correct the error. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 Record entry to correct error. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal
Sid Berhad year end is 31 December 2020. The accountant of Sid Berhad has asked for your opinion on the accounting treatment of the following items: (v) One of Sid Berhad’s product has suffered some bad publicity as a result of a customer claiming to have harm his health condition. The customer filed a court case in December 2020 claiming damages of RM100,000. Sid’s lawyer advised the company that the most probable outcome is that the company will have to pay the customer RM80,000. Required: Advise Sid Berhad’s accountant on the accounting treatments for all the above- mentioned items. Your answer shall make reference to relevant MFRS Standards.
As the accountant for Clean Air Controls, you attend a meeting with the sales managers to discuss credit policies. At the meeting, you report that bad debts expense for the year is estimated to be $85,000 and account receivables at year end is $1,500,000 less a $57,000 allowance for doubtful accounts. Arthur Levitt, a sales manager, asks why bad debts expense and the allowance are not the same amount. Required 1. Write a professional email explaining this concept to Arthur. The company estimates bad debts expense as 3% of sales.

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