List three environmental factors affecting Cando.

List three situational factors surrounding Cando.

List three accounting issues that the firm must resolve. Call them Issues 1, 2 and3 .

What are the alternatives available for Issue 1?

Which alternative do you recommend for Issue1? Justify your answer.

What are the alternatives available for Issue 2?

Which alternative do you recommend for Issue2? Justify your answer.

What are the alternatives available for Issue 3?

Which alternative do you recommend for Issue3? Justify your answer.

What are two restrictions that are in place for the accounting policies that Cando may follow?

Are Cando's investments in line with their strategic goals?

Adopt the rolc of the company's accountant and analyze the financial reporting issues. Cando Communications (CC) is a public company that owns and operates 10 broadevision stations and several specialty cable channels, 10 newspapers (including the International and many other non-daily publications. It has a 57.6\% economic interest in Australia TV (in (ralia) and a 29.9% interest in Ulster TV (in Northern Ireland). According to the notes to the annual financial statements, the company owns approximately of the shares and all the convertible and subordinated debentures of Australia TV. The convertdebentures are convertible into shares that would represent 50% of the company's total issued hares at the time of conversion. In total, including the debentures, the investment in Australia TV ricids a distribution that is equivalent to 57.5% of all distributions paid by Australia TV. CC has a contractual right to be represented on the board of directors and has appointed three of the board's 12 members. Although the company has tried to influence the decisions made by Ulster TV management, it has been unsuccessful and does not have any representation on the board of directors. Investments represent approximately $150 million (about 5% of total assets). Even though revenues were up by 15%, net income was only $8 million for the year, down from $50 million the prior year