Accounting assignments

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From the report, we have calculated the first year break-even points for the first years. Basically, the audit report is the written option which is made mainly for the financial statements as it is written by following the basic format. This kind of report follows the financial statements of an organization by following some basic rules. This kind of report provides the best opinion on the reliability of the monetary statements. After being finalized all the monitorial issues, it provides the perfect evaluation which is known as the auditor’s report. It is mandatory from an accredited auditor. It explains the reliability of the organization regarding the organizational monetary statements.

After reviewing the PPMC report, we can notice the errors which are given below:

· In the first paragraph, there two errors which are,

Safe harbor statement under the private securities litigation act of 1995.

Changes in assumptions or changes in other factors affecting such statements.

· The second error is regarding the second sentence in the first paragraph. From the sentence, it seems that the report is written by referring to the projected statements though it is not the conventional accounting term.

· There is also an error in the third sentence as it states to the corporate house. Here the first word is appeared to be the name of the firm which is written in the capital but the second one is not.

· In the last sentence, there is a use of ‘risk’ which is done in the introductory paragraph. The plural form is not correct.

· Another thing is important is here, that in that report the overall total for the commissions, marketing and sales are seemed to be the wrong place due to the error of the typing.

By analyzing the Audit report, we can make the summarization of the present.

We have seen the error regarding the location of it. In the introductory paragraph, the last sentence is wrong and the word ‘risk’ is not correct here. The form should be plural. The overall sentence will be ‘You should independently investigate and fully understand all risks before making investment decisions.’

The errors are also found in the substance part of the report:

· In the report, there the ‘accordance’ is being mentioned. But generally, there should not be any GAAP prerequisites according to the financial statements. The statements should be existed by referring to the statement ‘Projected Statements of Net Income’. For this reason, this sentence is not correct as it misleads the thought.

· Again in the note 6 of the report, the transpositions errors can be shown. So the financial statements should be mentioned properly. The third quarter in the columns of 15% becomes ostensible. It means $5382, 000should be$5832,000.

Table 1 is given below:

	J	F	M	A	M	J	J	A	S	O	N	D
Stores	1200	2400	3600	4800	6000	7200	8400	9600	10800	12000	13200	14400
*200 carts	200	200	200	200	200	200	200	200	200	200	200	200
Total Carts	240000	480000	720000	960000	1200000	1440000	1680000	1920000	2160000	2400000	2640000	2880000
*Revenue per Cart	$6.75	$6.75	$6.75	$6.75	$6.75	$6.75	$6.75	$6.75	$6.75	$6.75	$6.75	$6.75
Total Revenue	1620000	3240000	4860000	6480000	8100000	9720000	11340000	12960000	14580000	16200000	17820000	19440000
Variable Cost	4	4	4	4	4	4	4	4	4	4	4	4
Contribution Margin	660000	1320000	1980000	2640000	$3300000	3960000	4620000	5280000	5940000	6600000	7260000	7920000
Fixed Costs	-	-	-	120000	120000	120000	240000	240000	240000	360000	360000	360000
NOI	660000	1320000	1980000	2520000	3180000	3840000	4380000	5040000	5700000	6240000	6900000	7560000

Table 2 is given below:

KR	2774	Kroger
ABS	2200	Alberton's
SWY	1300	Safeway
AH	781	Ahold
SVU	3420	SUPERVALU
WINN	1056	Winn-Dixie Store
PUSH	1115	Publix Super Market
GAPTQ	Nil	Great Atlantic & Pacific
SFS	250	Smart & Final
IMKTA	200	Ingles Markets
BSI	180	Blue Square-Israel
PTMK	Nil	Pathmark
RDK	52	Ruddick
WFM	434	Whole Foods Market
WMK	164	Weis Markets
MARSA	117	Marsh Supermarkets
NAFC	53	Nash Finch
FRSH	400	Fresh Brands
OATS	6	Wild Oats Markets
SPTN	2100	Spartan Stores
EGLEQ	Nil	Eagle Food Centers
DJI	30	Gristede’s Foods
VLGEA	1	Village Super Market
FSM	10	Foodarama Supermarkets
ARDNA	4500	Arden Group
Total	21143

Lastly, form our calculation, we have analyzed the value of the breakeven point in terms of carts is 430,323 and the breakeven point in terms of the stores is 2152.