ACCT 11 Sept - motive as to why he has made this recommendation The possibility of my partner pulling a scam to earn a greater profit is shallow and

ACCT 203 Professor Williams Page 39 PB 1-1 1. Net income = 270,000 – (180,500 + 27,150) = 62,350 2. Ritertong Corporation Income Statement For the Year Ended April 30, 2007 (millions of U.S. dollars) Assets Cash $ 39,150 Accounts Receivable 27,500 Inventories 135,000 Property, Plant and Equipment 108,000 Total Assets 309,650 Liabilities Accounts Payable 57,800 Notes Payable 3,500 Total Liabilities 61,300 Stockholder’s Equity Contributed Capital 186,000 Total Liabilities and Stockholder’s Equity 186,000 1. My position on this proposal would have to be very skeptical. My partner which had recently been doing the audit has claimed he has found a close tie to the family which can do the audit for a cheap price; yet, their may be an ulterior

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Unformatted text preview: motive as to why he has made this recommendation. The possibility of my partner pulling a scam to earn a greater profit is shallow and will not be overlooked. 2. In this instance I believe that my partner is not being very loyal to the company and looking to gain more profit than my other partner and me. Therefore, it would be in my best interest to turn down the offer and recommend that we put forth the extra money to make sure that the numbers are done correctly, without any bias’, and everyone earns their fair share of the company....
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