Management of Accounts Receivable and Inventories

Related BrainMass Solutions

• Sparkrite Ltd - Income statements for years ended 30 September

  Accounts receivable can also be used as a way of short term financing if it is used as collateral for a loan. This is known as the pledging of the accounts receivable.

• Tootsie Roll Working Capital Strategies

  Lastly, management must ensure the impact of the increase in revenues as regards the cost of the additional inventories and increase in accounts receivable should not be more than the increase in profit the company will earn from the incremental sales

• Percent of sales method in pro forma balance sheet

  Balance Sheet as of December 31, 2005 Assets Liabilities & Equity Cash $ 1,000,000 Accounts Payable $ 3,000,000 Accounts Receivable 4,000,000 Notes Payable 2,000,000 Inventories 8,000,000 Total Current Liabilities

• Identify and discuss two metrics available for working capit

  The management of working capital involves managing inventories, accounts receivable, accounts payable, and cash. By definition, Working capital management entails short term decisions - generally, relating to the next one year period.

• Financial Ratio Calculations for Fox Company, Inc

  There may be a need to further review the company's accounts receivable management strategies. 6. Inventories are also very high at 39.28% of total current assets.

• Accounting question

  80924 Correct totals for cash, accounts receivable, and inventories Mare Company's December 31, 2005 balance sheet reported the following current assets: Cash $70,000 Accounts receivable 120,000 Inventories 60,000 Total $250,000 The analysis

• Cash conversion cycle; amount resources; effective rates

  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.

• Analysing the notes to financial statements

  The answer contains detailed analysis of notes to the financial statements of Appollo with respect to cash and cash equivalents, accounts receivable and inventories.

• Explanation of the turnover rate

  Inventory Turnover Ratio = (Cost of Goods Sold / Average Inventories) Average Inventories = (Beginning Inventories + Ending Inventories) / 2 Accounts Receivable Turnover Ratio: It is the ratio of sales to the average accounts receivable Accounts

• Finance Questions

  Because it includes cash, inventory, accounts receivable, accounts payable, the portion of debt due within one year, and other short-term accounts, a company's working capital reflects the results of a host of company activities, including inventory management