ACC303 Comprehensive Problem-Student Instructions
Instructions to Students
This assignment must be done independently-at home.

Ingalls Corporation is in the process of negotiating a loan for expansion purposes. The books and records have never been audited, and the bank has requested that an audit be performed. Ingalls has prepared the following comparative financial statements for the years ended December 31, 20x4, and 20x3. Ingalls Corporation is in the Athletic Sportswear Industry and their business is merchandising. You have been asked to review the statements to ensure its accuracy and freedom from errors and omissions. During your audit, some of the findings included the following facts: * An analysis of collections and …show more content…

December 31, 20x4 December 31, 20x3
Assets
Current Assets:
Cash $ 163,000 $ 82,000
Accounts Receivables 392,000 296,000
Allowance for doubtful accounts (37,000) (18,000)
Investment in available –for-sale securities 78,000 78,000
Inventory 207,000 202,000 Total Current Assets $ 803,000 $ 640,000
Property, plant & equipment Equipment $ 167,000 $ 169,500 Accumulated depreciation (121,600) (106,400)
Total property, plant and equipment $ _45,400 $ _63,100_ Total Assets $ 848,400 $ 703,100 Liabilities and Shareholders’ Equity