cases
i attached a document for case 7, just rewriting the answers
limit each case to 1 page answers
Week 3 Just for Feet (AC503) – Brenda Harris
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1.Prepare common-sized balance sheets and income statements for Just for Feet for the period 1996-1998. Also compute key liquidity, solvency, activity, and profitability ratios for 1997 and 1998. Given these data, comment on what you believe were the high-risk financial statement items for the 1998 Just for Feet audit
The following is a Balance sheet for Just for Feet in reference to the financial years ’96 to ‘98
| 98 | 97 | 96 | 98 | 97 | 96 | |
| Cash & Cash Equivalent | $12,412 | $82,490 | $138,785 | 1.8% | 18.4% | 36.9% |
| Marketable Securities | $33,961 | 9.0% | ||||
| Accounts Receivable | $18,875 | $15,840 | $6,553 | 2.7% | 3.5% | 1.7% |
| Inventory | $399,901 | $206,128 | $133,323 | 58.0% | 46.0% | 35.5% |
| Other Current Assets | $18,302 | $6,709 | $2,121 | 2.7% | 1.5% | 0.6% |
| Total Current Assets | $449,490 | $311,167 | $314,743 | 65.2% | 69.4% | 83.7% |
| Plant, Property & Equipment | $160,592 | $94,529 | $54,922 | 23.3% | 21.1% | 14.6% |
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