RSM426H1 Lecture Notes - Lecture 5: Promissory Note, Interest Rate
Document Summary
User: andre lenz (president and shareholder of eyes), other shareholders of eyes (family members), bank, osi. Hook: purchase price of osi, combined debt-to-equity ratio of both eyes and bno cannot exceed 2:1. Gaap: prepare a report that, explains "what happens to the both eyes" and bno"s financial results for the fiscal year that has just ended" July 31, 2006: prepare a memo about any important taxation matters come across that eyes should be aware of, including treatment for tax purposes of transactions pertaining to the restructuring of the operations of bno. Osi management misrepresentation, andre believes eyes can deduct 50% of the loss against the amount. Eyes owe osi m, maybe make it as notes payable to osi. August 1, 2005: bno refunded k and sold for k. July 31, 2006: bno refunded k and sold for . 5k (50%) Sales returns = 6% of annual external sales. No provision for sales returns is provided for in bno"s f/s.
