During the time of Mr. Eldridge’s unemployment he did not make child support payments. In January 2008, Mrs. Eldridge filed a motion with the court that entered the divorce decree, seeking an order forcing Mr. Eldridge to pay a total of $7,000 in missed child support payments. Mr. Eldridge countered with a petition to modify his child support obligation. The petition requested that he be excused from having to pay the obligations that accrued during his ten month unemployment period. The court ordered Mr. Eldridge to pay half of the amount due, totaling $3,500 and excused him from the remainder of the balance, due to the factor the Mr. Eldridge was unemployed during the months that the child support was being accrued.
Restatement of Financial Results ACC/537 This paper reviews the restatement of financial results of Kodiak Energy, Inc. for the fiscal quarter ended September 30, 2007 and the year ended December 1, 2007. The company was forced to issue a restatement because of financial accounting errors in measurement and in the application of Generally Accepted Accounting Principles in the September 2007 acquisition of the Thunder River assets. On the original financial statement, Kodiak Energy reported issuing seven million common stocks of its company in order to acquire assets owned by Thunder River Energy. In their 10-k and 10-Q statements, Kodiak Energy reported a value of $2 per share at the time of the transaction. However, an investigation by the Securities and Exchange Commission (SEC) revealed
Judgment Case 8-1 Riding the Merry-Go-Round Chapter 8 Requirement: In retrospect, can you identify any advance warning at the date of the financial statements of the companys impending bankruptcy? Merry-Go-Round was a major clothing company in the 1990’s. This company was beginning to struggle a little but thought they could turn things around by acquiring Chess King, a rival clothing chain. In the First half of 1993 the company lost $544,000 compared to the first half of 1992 where they had earned $13.5 million. (Spiceland, Sepe, & Nelson, 2013, p.468).
In October 2005 Delphi Corporation filed voluntary petitions to declare Chapter 11 bankruptcy. Delphi was a Fortune 500 company at this time and the bankruptcy filing ranked at the 9th largest in US history. It was important for Delphi to file for bankruptcy rather than negotiate reorganization with their various claimants because of the protection a Chapter 11 filing provides. Under the Chapter 11 Bankruptcy code, a corporate entity that goes into bankruptcy is granted an automatic stay. An automatic stay provides the bankrupt company with protection as it halts any collection efforts of various claimants while management work on designing and effectively implementing a plan of reorganization (POR).
Sadly, this company had a lot of factors working against them when the quarter came to an end. The reason that companies budget is to help ensure that money is being spent properly and to help track where future profits and losses may occur. The unexpected decrease in revenue can be factored into many different areas. One main factor of loss is due to the internet being down for 7 days causing the company to potentially have lost 7.7 percent of it’s customers and an estimated $10,00 in profit for this quarter. Factor number two is the company offering free shipping to orders over $100.
Harold Holmes, the new banker in charge of the Reed account requests to see company books and after examining what Reed presented, decided to deny the increase in the Reed credit line. Additionally, Reed owes the bank in excess of $100,000 which Holmes has requested payment within 30 days. Holmes suggested changes Reed could make to make his business profitable again and be able to stay on top of debt. These changes included hiring a consultant to overlook the financial and inventory aspects of the business, and reducing inventory and account receivables to the industry average. Upon reviewing the balancer sheet, Holmes suggested accounts receivable being considerably reduced, since this was an area which was controllable.
The next step is to use the function (in this case) =SUM (H5+G5) and copy down to 52 weeks. Model lost revenue due to breakdown When going through the problem finding the amount of copies sold per day, copies lost and revenue I then found the estimated revenue lost per year by dividing the revenue by 365 days, which gave me the average lost revenue. The questions that James, Ernie and Terri is, per Taylor III, B 2011: “Perform this manual simulation for JET Copies and determine the loss of revenue for 1 year.” (Pg. 679) If the loss of revenue were $12,000 or more they would purchase the backup copier. In this case the loss is under their specified amount so therefore they will not need the back up copier.
negative 2500 $.The company needs to raise about 40,000 $ as the ending cash balance for the month of July is negative 40,000 $. The Company can get a short term loan for 40,000 $ which can be repaid in October. 2. Even though the Company started with a Capital of 250,000 $ it still ends up with a zero bank balance. This is because the increase in the collections of Accounts Receivable from customers is not sufficient to recover the total disbursements (variable production cost and the fixed cost).
The equal probability of the copier breaking down before or after is the average time between breakdowns. So z^2/36 = 1/2. Solving gives z = 4.243 weeks. The uniform distribution for the number of copies sold per day, standard number of copies sold will be the average of the high and low estimates, which is 5000 copies per day. At 10 cents each, the expected revenue of $500 per day, and the amount will be lost while the copier is broken.
The National Endowment for Financial Education estimates that 70 percent of Americans who suddenly accumulate large sums of money will be broke within the next few weeks (DeLucca). There is a lack of accountability for athletes. Sportspersons that gross millions have a tendency to spend recklessly. In the documentary “Broke”, former athletes speak of reckless spending that made them poor. One athlete explained how he bought $30,000 earrings, and did not think twice about it.