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Accounts Receivable (Credit) Management

Credit Management: usefulness of criteria

Discuss the usefulness of following criteria for credit management 1) Terms of sale 2) The promise to pay 3) Credit analysis 4) The credit decision 5) Collection policy

Taxation Credits

Kevin and Sue have two children, ages 8 and 14. They spend $6,200 per year on eligible employment related expenses for the care of their children after school. Kevin and Sue each earns a salary of $30,000. What is the amount of the credit for child and dependent care expenses?

Available Credit

What is the difference between having available credit, some debt, and some cash vs. no debt, no available credit, and very little cash, because you have always paid all debts with cash?

Types of spontaneous financing

What are some types of spontaneous financing that are available to organizations? Which of these types is used by your organization? Is it important for an organization to establish a line of credit? Why or why not?

Management: Accounts Receivable

A company reported a $1,800 balance in accounts receivable on January 1, 2000. During the year, $12,400 of sales on account were made. During the year, the Co. wrote off as uncollectable, accounts receivable of $850. If the ending balance of accounts receivable is $1,000, what is the amount of cash received from customers?

What should the nominal cost of trade credit be to those customers who do not take discounts, based on a 365 day year, assuming that they pay on time, even though they do not?

I have been given a sample of study questions for my upcoming financial management test. Most of it I have been able to do fairly easily, but there are 5 questions I am having a difficult time with. Specifically, I am looking for not only the answer to these following questions, but how you came to get them as this is what I rea

Description of Accounts Receivable

8-2A At December 31, 2007, Curtis Imports reported this information on its balance sheet Accounts receivable $600,000 Less: Allowance for doubtful accounts $40,000 During 2008, the company had the following transactions related to receivables. 1) Sales on the account

Filing Status, Dependency Exemptions, and Child Credit

Filing Status, Dependency Exemptions, and Child Credit. For the following taxpayers, indicate which tax form should be used, the applicable filing status, and the number of personal and dependency exemptions available, and the number of children who qualify for the child credit. a. Arnie is a single college student who earned

Finance Questions

1. In the management of cash and marketable securities, why should the primary concern be for safety and liquidity rather than maximization of profit? 2. Explain the similarities and differences of lockbox systems and regional collection offices. 3. Why would a financial manager want to slow disbursement? 4. Why are Treasury

Cash Management Paper

A. Compare and contrast various cash management techniques. b. Compare and contrast the various methods of short-term financing.

Accounts Receivable Turnover Computations

The following data are taken from the comparative balance sheets of Fulton Company. Compute and interpret its accounts receivable turnover for year 2005 (competitors average a turnover of 7.5). 2005 2004 Accounts receivable $152,900

Credit Extension Policies

Discuss how each of the following factors would tend to affect a firm's credit extension policies: a. A shortage of working capital b. An increase in output to the point where the firm is operating at full production capacity. c. An increase in the firm's profit margin (i.e. its profit contribution ratio) d. An increase

Discounts/Credit Terms

On June 1, 2004, Noll Corp. sold merchandise with a list price of $30,000 to Linn on account. Noll allowed trade discounts of 30% and 20%. Credit terms were 2/15, n/40 and the sale was made f.o.b. shipping point. Noll prepaid $600 of delivery costs for Linn as an accommodation. On June 12, 2004, Noll received from Linn a remitta

Accounting: provision for uncollectible accounts receivable

The year ended December 31, 2005, Ed Co. estimated its allowance for uncollectible accounts using the year-end aging of accounts receivable. The following data are available: Allowance for uncollectible accounts, 1/1/04 $51,000 Provision for uncollectible accounts during 2004 (2% on credit sales of $2,000,000) 40,000

Credit to Corporate Customers

When we all talk about the risk of extending credit to corporate customers, what is a quick and easy method of measuring the credit risk of a publicly traded firm?

Accounts payable and credit terms for customers

A company has been selling on a 3/10, net 30 basis. The company changes its credit terms to 2/20, net 90. The change will affect the customer's accounts payable and bank loan by: increasing payables and decreasing bank loans or increasing payables and increasing bank loans

Change in the Accounts Receivable Balance After Reducing DSO

Ruth Company currently has $1,000,000 in accounts receivable. Its days sales outstanding (DSO) is 50 days (based on a 365-day year). Assume a 365-day year. The company wants to reduce its DSO to the industry average of 32 days by pressuring more of its customers to pay their bills on time. The company's CFO estimates that if thi

Debit/Credit Payroll

In addition to regular payroll, ET Ice Cream Company hired a local construction company to assemble the structure and freezer paying them $26,000. What is the debit and credit for paying the construction company? How does ET report the construction cost payment to federal agencies?

Sample Design and Selection.

Sample design Planning the confirmation of accounts receivable. There are 2,000 Customers with a total book value of $5,643,200. I am needing guidance with this problem I have been working on it since last week and it is due on Wednesday. See attached file for full problem description.

Finance Questions

1- What do you think happens to the ABL Line of Credit (i.e., the ABL Loan Balance) if you are using the arrangement to sell goods that consistently lose money? (i.e., the products have a negative contribution margin). 2- Asset-Based Lending Asset-based lending is usually provided by a bank or other financial institution t

Inventory and accounts receivable planning

Douglas Company plans to sell 24,000 units of Product A during July and 30,000 units during August. Sales of Product A during June were 25,000 units. Past experience has shown that end-of -month inventory should equal 3,000 units plus 30% of the next month's sales. On June 3o this requirement was met. Based on these data, how

Discount Credit Terms - Effective Annual Rate

Your company has been offered credit terms on its purchases of 3/15, net 30 days. If you do not take the discount and pay after 50 days what is your company's effective annual cost (EFF%) of not taking the discount? What would be the effective annual cost if your company paid after 30 days? (Assume a 360-day year)

To go to a boss or not

If you gave a report you thought was a great report to your boss a while ago and this report analyzes department productivity and tells several steps that you think that will improve employee output without increasing each workload. Brilliant you thought, but you have not heard anything from your manager, did you overstep your b

Employee Benefits for Sr. Credit and Collections Analyst Memo

Draft and post a memo to upper management detailing the benefits available to employees in the position of Restaurant General Manager/Operating Partner. 1. Be sure to include health insurance, time off, retirement/savings plan, and one other work/life benefit. 2. Explain to management the primary strategic consideration i

Which accounts would be debited and credited based on the following data.

Accounts given: (a) cash (b) accounts receivable (c) supplies (d)equipment (e) accounts payable (f) note payable (g) capital (h) withdrawals (i) service revenue (j)utilities expense (k) salary expense. transactions given: (A) purchased equipment for cash. (B) performed services for cash. (c) owner invests cash into b