Buff Tech, Inc. sells computer components and plans to borrow some money to expand. The company has a 12/31 year-end. After reading about earnings management (refer back to Chapter 4), Bucky, the owner has decided he should try to accelerate some sales to improve his financial statement ratios. He has called his best customers and asked them to make their usual January purchases and take delivery of the goods by December 31. He told the customers he would allow them until the end of February to pay for the purchases, just as if they had made the purchases in January.

Note: For revenue recognition purposes, the performance obligation was satisfied by 12/31.

Question:

What are the ethical implications of this plan? What ratios will be improved by accelerating these sales? What about future implications?

QUESTION 6 For a borrower in a (c,c') graph, the optimal consumption bundle is O to the left of the endowment point. 0 to the right of the endowment point. 0 on the endowment point. 0 dependent on other factors. Part 1 (0.2 point) x Feedback See Hint A consumer receives an endowment of $200.00 this period and $800.00 next period. Currently the interest rate is 11.00%. The present value of the endowment is $ 1088.00 . (Give your answer to two decimals.) Part 2 (0.4 point) Feedback 0 See Hint Suppose that instead, the endowment is $240.00 this period and $1040.00 next period. Suppose that the interest rate is still 11.00%. Now the present value of the endowment is $ @ 1154.4 . (Give your answer to two decimals.) With the new endowments, the consumer is @ wealthier Part 3 (0.4 point) Feedback See Hint Now suppose that the endowment is $150.00 in the first period and $775.00 in the second period. The interest rate is still 11.00%. Now the present value of the endowment is $ @ 860.25 . (Give your answer to two decimals.) With the new endowments, the consumer is poorerProblem 1 .2 The following bank reconciliation is presented for Pau Company for the month of November 2016: Balance per bank statement, 11/30/16 Php 180,400 Add: Deposit in transit Php 41,500 Erroneous bank charge 15,000 56,500 236,900 Less: Outstanding checks 78,200 Balance per books, 11/30/16 Php 158,700 Data for the month of December 2016 follow: Per bank : December deposits/credits Php 261,000 December charges/debits 224,200 Balance December 31, 2016 217,200 All items that were outstanding as of November 30 cleared through the bank in December, including the bank charge. In addition, Php25,000 in checks were outstanding as of December 31, 2016.C. (2) Journalize the entry to record the receipt of payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DONT CREDIT ASSETS LIABILITIES EQUITY Check My Work 2 more Check My Work uses remaining-