This posting shows to to determine ship methods from ratios.
Not what you're looking for?
Many firms recognize revenus at the point of shipment. This provides an incentive to accelerate revenues by shipping goods at the end of the quarter. Consider two companies, one of which ships its product evenly throughout the quarter, and the second which ships all its products in the last two weeks of the quater. Each company's customers pay thirty days after receiving shipment. Using accounting ratios, how can you distinguish these companies?
Purchase this Solution
Solution Summary
The solution discusses how to determine a company's shipping methods based on their accounting ratios.
Solution Preview
The actual income statements would appear no different when comparing the two companies. The company that pushes sales out during the last two weeks of the quarter will have a higher accounts receivable balance, and a brief analysis of the A/R account would show that there is a more even, stable A/R pattern for ...
Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.