88 | Shown above are some of the key ratios for Crazy Eddie during the period 1984-1987. Some of the red flags these ratios reveal include the steady decline of inventory turnover rates from 1984-1987 which could indicate lost sales, excess inventory, or ineffective buying. Another red flag is the accounts receivable turnover figures. The drop from 116.78 in 1986 to 32.5 in 1987 is most likely a result of the poor credit policies Crazy Eddie had in place for its customers. 2.) Several audit
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………9 Issues 1. Compute key ratios and other financial measures for Crazy Eddie during the period 1984-1987. Identify and briefly explain the red flags in Crazy Eddie’s financial statements that suggested the firm possess a higher-than-normal level of audit risk. 2. Identify specific audit procedures that might have led to the detection of the following accounting irregularities perpetrated by Crazy Eddie personnel: (a) the falsification of inventory count sheets, (b) the bogus debit
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Crazy Eddie The major schemes involved were the overstatement of inventory and the understatement of accounts payable. The overstatement of inventory was accomplished by preparing inventory count sheet for items that did not exist. In order to fix a drop in same-store sales Antar would record transshipping transactions as retail sales of individual sales. This meant that inventory would not be credited for the total number actually sold. It would inflate selected operating units in addition to overstating
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I believe that Daniels is responsible for reporting the error to Peter. From the ethical reasoning perspective, I would attempt to identify the harms and benefits of whether informing my superior about potential error versus not informing them. The consequences of not reporting his mistake to Peter in projecting sales would be severe, not only for Daniels but also for entire Lynchberg Manufacturing. First, if the demand does not increase beyond the projected level later, Daniel would lose his job
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Case Study: CRAZY EDDIE 1-6 1. Key Ratios: 1987, 1986, 1985, 1984 Liquidity Ratios: Current Ratio: 2.4062, 1.3985, 1.5626, 0.9287 Quick Ratio: 1.4044, 0.5982, 0.7680, 0.1499 Solvency Ratios: Debt to Assets Ratio 0.6837 0.6643 0.6359 0.8298 Times Interest Earned 3.6169 30.3927 28.2877 14.9253 Long-Term Debt to Equity 2.1617 1.9786 1.7462 4.8755 Activity Ratios: Accounts Receivable Turnover 32.5026, 116.7711 49.7515, 52.7208 Inventory Turnover Ratio: 4.98, 3.55, 1.89, 1.95 Looking
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Crazy Eddie, Inc. Question 1 Key ratios and other financial measures: |Pro Forma Balance Sheet Ratio |1984 |1985 |1986 |1987 | | |Account Receivable |7.12% |4.18% |1.77% |3.68% | | |Merchandise Inventories |63.83% |40.51% |47.16% |36.99% | | |Account Payable
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Bivariate Analysis in SPSS: The Correlation Coefficient (Textbook Resources: Norusis, pages 431-432 and 486-488) Please use the data file, Customer_Survey_Modified, for the following examples. I. An Overview of the Correlation Coefficient • measure of the co-variation or degree of association between two variables (Are two variables related to one another and, if so, what is the direction and strength of this relationship?) • can be calculated for interval and ratio variables
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Society written by Jerry Hannan (performed by Eddie Vedder) The song society is a melancholic song representing Chris Mccandles (Alex Supertramp) journey through his rediscovered life. The song focuses on materialism shaping your identity. The songs theme is strengthen by the fact that the song only is performed by Eddie Vedders humming voice and the strumming guitar. The ebb and flow of Vedder’s voice, paired with the decrescendos and crescendos of the wave-like guitar, reflected the tug
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w. wi l ey .c om/ c o l le ge / aak CASE 5-1 Barkley Foods Joyce Stevenson, the manager of marketing research for Barkley Foods, had just left an emergency meeting with the firm’s president. An opportunity to buy an established line of gourmet (high-quality/high-priced) frozen dinners had arisen. Because there were other interested buyers, a decision had to be made within three or four weeks. This decision depended on judgments about the future prospects of the gourmet frozen dinner
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To grandma Dear grandma. I write this letter to you because I am sad and you are one of the only persons I really trust and you always understand me. As you know there has always been struggles between us Catholics and the protestants, and they have never been nice to us. So now I am in a school where we are not separated, we go to classes as if we all were the same, and that is fine I think and there are no problems when we first are in the school. But the problem is; on our way to school, the
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