A company must disclose any change in its inventory costing method in its financial statements.
Answer the following statement true (T) or false (F)
True
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Thermocore is a medium-sized company that produces wall paneling. Thermocore is a wholly-owned subsidiary of a holding company called Tempra-Sure, Inc Both Thermocore and Tempra-Sure, Inc are owned by the same individuals as principal shareholders
Thermocore has fallen on hard times due to a downturn in the construction industry in the primary market area the company serves. Sales of the company have declined and net losses have occurred for each of the last three years. The company is in dire need of cash but the owners of Tempra-Sure, Inc and Thermocore know that additional financing from a bank or other source is unlikely due to the company's weakened financial condition. The owners of Tempra-Sure, Inc and Thermocore believe that the downturn in construction will eventually reverse and that Thermocore will return to profitability when conditions improve. Based on these beliefs, the owners have proposed to the independent auditors a plan whereby the holding company (Tempra-Sure, Inc) would obtain a loan from a bank and then make an intercompany loan to Thermocore. Under this plan, the owners would sell their personal residences to Tempra-Sure, Inc. Lease agreements between Tempra-Sure, Inc and the owners would be drafted. These lease agreements would allow the owners to continue to occupy their homes. Title to the homes would pass to Tempra-Sure, Inc. Tempra-Sure, Inc would become involved in property management in addition to holding the stock of Thermocore. Tempra-Sure, Inc would have no additional properties other than the personal residences of the owners. The acquisition of additional properties by Tempra-Sure, Inc is unlikely. Required: Assume that you are the partner in the public accounting firm performing the audit of Tempra-Sure, Inc and Thermocore. Prepare your response to the owners of Tempra-Sure, Inc and Thermocore regarding the plan to obtain additional financing. Include references to the Conceptual Framework and underlying assumptions of accounting in your response.
Robinson Company reported a net loss of $23,000 during the year. Comparing beginning and ending balances, you determine the following: (1) accounts receivable increased by $8,000; and (2) accrued expenses payable increased by $5,000 . What was the amount of cash used in operating activities during the year?
a. $26,000 b. $36,000 c. $20,000 d. $10,000
Identify the adverb or adverbs in the sentence. My drawing of the gazebo in the town square is quite different from yours
A croissant shop produces two products: bear claws (B) and almond-filled croissants (C). Each bear claw requires 6 ounces of flour, 1 ounce of yeast, and 2 TS of almond paste
An almond-filled croissant requires 3 ounces of flour, 1 ounce of yeast, and 4 TS of almond paste. The company has 6600 ounces of flour, 1400 ounces of yeast, and 4800 TS of almond paste available for today's production run. Bear claw profits are 20 cents each, and almond-filled croissant profits are 30 cents each. What is the optimal daily profit? A) $380 B) $400 C) $420 D) $440