River Runners, Inc. reported the following information in its ...

[geoffrey]

River Runners, Inc. reported the following information in its financials for the year ended December 31, 2012:
 
  Dividends  3,000
  Net Income 45,000
  Total expenses 50,000
  Retained earnings - beginning balance Jan. 1, 2012 30,000
  Accounts receivable 20,000
 
  1. What were the company's revenues?
  2. How much of the past profits have been kept by the company as of December 31?
  3. How much do customers owe River Runners as of December 31, 2012?

Question 2

According to the COSO Fraudulent Financial Reporting 1998- 2007 update:
 a. The most common fraud scheme used was improper revenue recognition.
  b. Most companies engaged in fraudulent activities were able to recover and resume operations.
  c. CEO's and CFO's were named by the SEC for involvement in approximately 50 of fraud cases.
  d. All of the above.

[jesse.fleming]

Answer to Question 1

1. 95,000 revenue = 45,000 + 50,000
2. 122,000 = 30,000 + 95,000  3,000
3. 20,000

Answer to Question 2

A

[geoffrey]

YES! Correct, THANKS for helping me on my review

[ktidd]

Gracias!