Read each case and specify which standard was violated
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A: The answer has been mentioned below.
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Q: Specify the threat associated with this case?
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Read each case and specify which standard was violated
Ademi is a partner in the firm of FF, a small firm offering investment advisory services. She assures a prospective client who has just inherited US$1 million that “we can perform all the financial and investment services you need.” FF is well equipped to provide investment advice but, in fact, cannot provide asset allocation assistance or a full array of financial and investment services.
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- Alyssa who is currently operating a machine shop is considering Dindin, an excellent employee, to be her partner. Unfortunately, Dindin could not afford to invest cash of P 500,000 which Alyssa needs to expand her business. As consultant, you asked Alyssa to answer some questions before giving an advice on whether Dindin should be taken in as partner. What is your present annual net income? P 450,000 Can you avail of a loan of P 500,000? Yes What bank and what is the interest rate? Land Bank @ 17% With the new equipment, how much additional income will it generate? P 450,000 In how many year are you going to pay the loan? 5 years How much are you willing to pay Dindin as salary or profit? P 160,000 You drafted the following information and filed it up: Net income…Alyssa who is currently operating a machine shop is considering Dindin, an excellent employee, to be her partner. Unfortunately, Dindin could not afford to invest cash of P 500,000 which Alyssa needs to expand her business. As consultant, you asked Alyssa to answer some questions before giving an advice on whether Dindin should be taken in as partner. Details : 1.What is your present annual net income? P 450,000 2. Can you avail of a loan of P 500,000? Yes 3. What bank and what is the interest rate? Land Bank @ 17% 4. With the new equipment, how much additional income will it generate? P 450,000 5. In how many year are you going to pay the loan? 5 years 6. How much are you willing to pay Dindin as salary or profit? P 160,000 next is what are the answers of the following questions? Net income with the new equipment Less (Minus) interest charge on loan liability Net income after the interest charge Less (Minus) share of Dindin in the profits Share…Jake is a financial adviser at a small firm that publishes an online financial blog for the benefit of clients and prospective clients. Jake's firm subscribes to a service from a large investment research firm that provides research on the securities of a variety of companies and the general investment outlook for different industry sectors. Jake often includes these research reports in the blog. Jake (Choose the best answer.) O (No answer given) O cannot misrepresent his capabilities by sharing research he has not produced. cannot plagiarize the reports by including them in the blog. O none of the choices. O must attribute the research to its source.
- Complete your calculations by filling in the highlighted cells. Note: the PV Annuity table is provided for you. Discuss if you think the cookie business should accept or reject the purchase of the new equipment and why.Additional information has come to your attention regarding the equipment purchase. One of the partner's brother owns the company that sells the equipment and insists the equipment is needed. Discuss any ethical concerns you see with this type of transaction. Cookie Business As the owner of the Cookie Business, you are considering the following investment: Purchase of new equipment $ 250,000.00 Expected annual increase in sales $ 48,017.50 Time frame 7 years Acceptable rate needed 9% Calculate the Internal Rate of Return: PV of annuity factor Internal rate of return Accept or rejectAlyssa who is currently operating a machine shop is considering Dindin, an excellent employee, to be her partner. Unfortunately, Dindin could not afford to invest cash of P 500,000 which Alyssa needs to expand her business. As consultant, you asked Alyssa to answer some questions before giving an advice on whether Dindin should be taken in as partner. What is your present annual net income? Can you avail of a loan of P 500,000? P 450,000 Yes Land Bank @ 17% P 450,000 What bank and what is the interest rate? With the new equipment, how much additional income will it generate? In how many year are you going to pay the loan? How much are you willing to pay Dindin as salary or profit? 5 years P 160,000 You drafted the following informatic and filed it up: Net income with the new equipment Less (Minus) interest charge on loan liability Net income after the interest charge Less (Minus) share of Dindin in the profits Share of Alyssa in the net income Net income the business is currently…Assume: You are a financial adviser and are approached by a married couple, Tom, and Rita Brown. Both are 71 years old and Australian citizens by birth. While they live in Melbourne, their only son who is financially independent lives in Canberra. The following information is an extract of data you gathered as part of the fact-finding exercise during an initial client consultation with them: The couple has approached you to find out if they are eligible for age pension. list of assets for the current financial year Assets Amounts Income Home (Principal Residence) $700,000.00 Home Contents and Cars $57,000.00 Investment Property- net rental income of $7,000 $255,000.00 17,000.00 Bank account- interest Rate of 2% 50,000.00 1,000.00 Shares Portfolio 341,000.00 11,935.00 You are required to provide calculations for the means test (asset and the Income test) and use this to suggest old age pension…
- You work as an accountant for a small land development company that desperately needs additionalfinancing to continue in business. The president of your company is meeting with the manager of alocal bank at the end of the month to try to obtain this financing. The president has approached youwith two ideas to improve the company’s reported financial position. First, he claims that because abig part of the company’s value comes from its knowledgeable and dedicated employees, you shouldreport their “Intellectual Abilities” as an asset on the balance sheet. Second, he claims that by reporting the company’s land on the balance sheet at its cost, rather than the much higher amount that realestate appraisers say it’s really worth, the company is understating the true value of its assets.Required:1. Thinking back to Chapter 1, why do you think the president is so concerned with the amountof assets reported on the balance sheet?2. What accounting concept introduced in Chapter 2 relates to the…Jane, an ambitious entrepreneur, is looking to expand her successful start-up business after one year of operation. To secure funds for this venture, she decides to approach a bank for a loan. However, the bank requests financial statements to assess the viability of her business and its ability to repay the loan. Challenge: Jane is unfamiliar with the specific financial reports required and their significance in the loan application process. She seeks guidance on which reports are essential and why they play a crucial role in demonstrating her business's financial health. Please provide a memo for her and discuss her challenge with recommendation." 11Please help me by showing your solution in good accounting form. Thank you! Guardians Fund Managers Company sells two licenses to XYZ Company on September 1, 20x6. First in exchange for P400,000, the company provides XYZ with a copy of its proprietary investment management software, which the company does not anticipate updating and which XYZ can permanently use. Second, in exchange for P360,000, the company provides XYZ with a three-year right to market the company’s financial advisory services under the name of Guardians, which the company advertises on an ongoing basis. How much revenue will the company recognize in 20x6 under this arrangement?
- Kampfire, Inc., a very successful manufacturer of camping equipment, is considering going public next month to raise funds to help finance the company’s futuregrowth. The financial manager of Kampfire has approached the investmentbanking firm at which you work seeking help with its decision. Your boss askedyou to explain the nature of the U.S. financial markets and the process of issuingequity to the financial manager. To help with this task, your boss has asked youto answer the following questions in explaining the U.S. financial system to thefinancial manager:a. What is a financial market? How are financial markets differentiated frommarkets for physical assets?b. Differentiate between money markets and capital markets.c. Differentiate between a primary market and a secondary market. If Microsoftdecided to issue additional common stock and an investor purchased 1,000shares of this stock from the underwriter, would this transaction be a primarymarket transaction or a secondary market…John Mesa, CFA, is a portfolio manager in the Trust Department of BigBanc. Mesa has been asked to review the investment portfolios of Robert and Mary Smith, a retired couple and potential clients. Previously, the Smiths had been working with another financial advisor, WealthMax Financial Consultants (WFC). To assist Mesa, the Smiths have provided the following background information. Family: We live alone. Our only daughter and granddaughter are financially secure and independent. Health: We are both 65 years of age and in good health. Our medical costs are covered by insurance. Housing: Our house needs major renovation. The work will be completed within the next 6 months, at an estimated cost of $200,000. Expenses: Our annual after-tax living costs are expected to be $150,000 for this year and are rising with inflation, which is expected to continue at 3 percent annually. Income: In addition to income from the Gift Fund and the Family Portfolio (both described below), we…there are 5 seperate scenarios by the way. Thank you! #1. Tana Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare a bid to audit Allnet’s financial statements. In discussing the audit fee, Allnet’s management suggests a fee range in which the amount depends on the reported profit of Allnet. The higher its profit, the higher will be the audit fee paid to Thorne’s firm. Required1. Identify the parties potentially affected by this audit and the fee plan proposed.2. What are the ethical factors in this situation? Explain.3. Would you recommend that Thorne accept this audit fee arrangement? Why or why not?4. Describe some ethical considerations guiding your recommendation. ______________________________________________________________________________________ #2 Amy Martin is a student who plans to attend approximately four professional events a year at her college. Each event necessitates payment of $100…