Laura's Ad Agency accounts receivable totaled $451,000 on February 28, 2011. An aging summary of receivables at this date follows: End of Month Amount February 2011 $250,000 January 2011 100,000 December
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What irregularities should a fraud examiner look for within a firm where inventory or fixed assets are present or in the accounts receivable area of a firm?
"I would not sell to these companies without a letter of credit. That would just be adding more risk on top of risk. It is risky enough conducting business outside of a person's country; not adding a letter of credit would not be a smart idea." What if you were a small company and obtaining a letter of credit for each cus
It is the second Monday night in October and it is now 3AM. You cannot sleep. You are the CFO of Marysville General Hospital, a 300 bed community hospital in the Midwest. Your hospital Board meets at noon on the second Tuesday of each month. You have a truly awful report to give the Board and you are dreading it more than an
Please attached Hershey Asset Management 2008 Tootsie Roll Asset Management 2008 Total Asset Turnover = Sales/Total Asset Total Asset Turnover = Sales/Total Asset 5,132,768 / 3,634,719 = 1.412 496,016 /812,092 = 0.611 Average Collection Period(ACP) Ave
Please concisely explain the options a company has to convert its receivables to cash.
See attached for better formatting.... BeleVu supplies showed the following selected adjusted balances at its December 31, 2010 year end: Accounts Receivable Dec.31/10 Balance 498,000 Allowance for Doubtful Accounts 16,680 Dec.31/10
Accounting Cash Flows for Intermediate Accounting 11. MC053 Peterson Company has the following items at year-end: Cash in bank $30,000 Petty cash 500 Short-term paper with maturity of 2 months 8,200 Postdated checks 2,100 Peterson should report cash and cash equivalents of a. $30,000. b. $30,500. c. $38,70
Explain three options a company can use to convert its receivables to cash. 100 words
A. If a firm buys under terms of 3/15, net 45, but actually pays on the 20th day and still takes the discount, what is the nominal cost of its nonfree trade credit? b. Does it receive more less credit than it would if it paid within 15 days?
The Thompson Corporation projects an increase in sales from $1.5 million to $2 million, but it needs and additional $300,00 of current assets to support this expansion. Thompson can finance the expansion by no longer taking discounts, thus increasing accounts payable. Thompson purchases under terms of 2/10, net 30, but can de
A partner company to American Intellectual Union (AIU), Universal Credit Inc., would like to examine the required sample size needed to be able to estimate the mean dollars that each card holder will spend each month. It would like to be within plus or minus $10 of the true mean with a 98% confidence level. The standard deviatio
Kay's House of Sound sells 520 musical instruments a year at an average price per instrument of $580. All sales are credit sales with terms of 2/10, net 25. Hogan's has found that 78 percent of its customers take advantage of the discounted price. What is the amount of the firm's average accounts receivables?
Prospective employers can conduct a credit check along with a background check to determine employment eligibility. Do you feel this is good business practice or an invasion of privacy? Justify your answer with at least three reasons.
Can you help me get started on this assignment? For a company accounts receivables balances as a percentage of a March's sales are 95% of March's sales, 55% of February's sales, and 20% of January's. If this pattern continues, what is the estimated percentage of cash flows from April sales, March sales, February, and Janua
Webster Lighting Ltd. began operations on December 1st of last year and is preparing their budgets for the upcoming quarter (January, February and March). After reviewing past receipt patterns you have found the following collection pattern: In the month of sale 40% In the first month after the sale 30% In the second month
The trial balance before adjustment for sinatra company shows the following balances DR - Accounts Rec. 82,000 DR - Allowance for doubtful accounts 1,750 CR - Sales 430,000 1. To obtain additional cash, Sinatra factors without recourse 20,000 of accounts receivable with Stills Finance. The finance charge is 10% of the a
Cash conversion cycle American Products is concerned about managing cash efficiently. On the average, inventories have an age of 90 days, and accounts receivable are collected in 60 days. Accounts payable are paid approximately 30 days after they arise. The firm has annual sales of about $30 million. Assume there is no difference in the investment per dollar of sales in inventory, receivables, and payables; and a 365-day year. a. Calculate the firm's operating cycle. b. Calculate the firm's cash conversion cycle. c. Calculate the amount of resources needed to support the firm's cash conversion cycle. d. Discuss how management might be able to reduce the cash conversion cycle.
Cash conversion cycle American Products is concerned about managing cash efficiently. On the average, inventories have an age of 90 days, and accounts receivable are collected in 60 days. Accounts payable are paid approximately 30 days after they arise. The firm has annual sales of about $30 million. Assume there is no differ
Write a paper to review McDonald's most recent financial reports, such as management comments, and footnotes to financial statements, to explain how each current account has affected cash management strategies.
Colburn Inc. is considering a lock box system. The firm has analyzed its credit receipts and determined the following: Average time checks are in mail -3 days Average internal check processing time-3 days Average time to clear the banking system -2 days Total credit sales - 180 million Average check --$10,000 Colburn funds
Jimmy Jack, Inc. is considering relaxing its credit standards in order to meet a competitor's change in credit policy. As a result of the proposed change, sales during the coming year are expected to increase 15%, from 5,000 cars to 5,750 cars, the average collection period is expected to increase from 35 days to 45 days, and ba
Cleaning Maids Inc. is considering shortening its credit period from 30 days to 20 days and believes, as a result of this change, its average collection period will decrease from 36 days to 30 days. Bad debt expenses are also expected to decrease from 1.2% to 0.8% of sales. The firm is currently selling 300,000 units but believe
Define the factoring of accounts receivables. How does factoring affect cash management? Explain the difference between factoring and accounts receivable financing.
What is the cost of not taking the suppliers' discounts? Reed's purchased about 80% of its purchases on terms of 3/10, net 60 and did not take cash discounts offered by the suppliers. Accounts are now 40 days past due. Cost of goods - 1,42870.2 67.0 (industry standard).
Industries has sales in 2006 of $40M 20 percent of which were cash. Clovis normally carries 45 days of credit sales in accounts receivable, what are its average accounts receivable balances? (assume a 365 day year) William Oil Company had a return on stockholders' equity of 18 percent during 2006. Its total asset turnover wa
Indicate whether each of the following accounts normally has a debit or cresit balance. a. common stock b. retained earnings c. certificate of deposit d. interest expense e. accounts receivable f. interest revenue g. insurance expense h. interest payable i. cash j. dividends k. unearned revenue l. operating expense
You have been pricing a compact disk player in several stores. 3 stores have the identical price of $300. Each storecharges 18% APR, has a 30 day grace period, and sends out bills on the 1st of the month. On further investigation, you find that store A calculates the finance charge by using the average daily balance method, stor
Bobby is trying to decide between 2 credit cards. One has no annual fee and an 18% interest rate,and the other has a $40 annual fee and and 8.9% interest rate. Should he take the card that's free or the one that costs $40?
Gorman Inc. has arranged a $10,000,000 revolving credit agreement with a group of banks. The firm paid an annual commitment fee of 0.5% of the unused balance of the loan commitment. On the used portion of the revolver, it paid 1.5% above prime for the funds actually borrowed on a simple interest basis. The prime rate was 9% duri
Optical Supply Company offers credit terms of 2/10, net 60. If Optical Supply is considering a change in its credit terms to one of those indicated below, explain whether the change should increase or decrease sales. (a) 2/10, net 30; (b) net 60; (c) 3/15, net 60; (d) 2/10, net 30,