FASB Codification Assignment 1 – Receivables You are spending your summer working for a local wholesale furniture company‚ Beds and Beyond‚ Inc. The company is considering a proposal from a local financial institution‚ Old Faithful Financial‚ to factor Bed and Beyond’s receivables. The company controller is unfamiliar with the most recent FASB pronouncement that deals with accounting for the transfer of financial assets and has asked you to do some research. The controller wants to make sure
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great responsibility." If we are not careful‚ the technology we know and love could be used against us‚ even subtly. In reality the technology of today better resembles dystopian visions represented by George Orwell’s ‘1984’ following Winston Smith’s fight against the totalitarian state rule of England‚ Steven Spielberg’s film “Minority Report”‚ set in a dystopic future where pre-crime bears the authorisation to arrest ‘criminals’ based on the simple predictions of ‘Pre-Cogs’ and Phillip K Dick’s novella
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Question 1 Correct! The sale of receivables by a business can be a quick way to generate cash for operating needs. The sale of receivables by a business can be a quick way to generate cash for operating needs. Question 2 Correct! April 30 –13 = 17 days remaining in April + 31 days in May + 12 days in June = a maturity date of June 12. A 60-day note receivable dated April 13 has a maturity date of June 12. Question 3 Correct! A
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Determining the Accounting for Receivables from Officers and Directors. Facts Philadelphia Communications Inc. (“Philly”) is a public company that completed an initial public offering (IPO) a few months ago. John Sigar is the current CEO and member of the board of directors. He is the only family member involved in the business and owns significant amount of the company’s stock. While‚ we were doing audit testing for accounts receivable we came across number of Notes Receivable from several Mr Sigar’s
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1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. • Harnischfeger included net sales figure from Kobe Steel Ltd. Previously‚ only net gross margin generated from transactions with Kobe Steel Ltd was included. As a result‚ net sales figure increased by $28 million. • Harnischfeger incorporated certain foreign subsidiaries’ financial statements with fiscal year ending 31st July. The adjustment resulted in a net sales figure increase
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Loans and Receivables – Long Term PROBLEMS 1. Smart Company has P3‚000‚000 note receivable from sale of plant bearing interest at 12% per annum. The note is dated June 1‚ 2008. The note is payable in 3 annual installments of P1‚000‚000 plus interest on the unpaid balance every June 1. The initial principal and interest payment was made on June 1‚ 2009. The interest income for 2009 is a. P300‚000 c. P210‚000 b. P290‚000 d. P140‚000 rro 1. Trans Company sold a tract of land
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President. (6 points) | | CFO | | | | | | | | | Controller | | | Manager of | | Treasurer | | | | HR | | | Accounting | | | | Financial | Manager | | | | Analyst | | | | | | | Accounting | | | | | Clerk | | | | | 3. On the following pages are the annual financial statements of Target. Please utilize the financial statements to calculate the following: (16 points) a) EBITDA for 2011 5‚322 + 2‚131 = 7‚453 b) Current Ratio for January
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the break-even point‚ (3) reorientation of the company’s business and (4) debt restructuring and recapitalization. These changes at first glance appear to have allowed Harnischfeger to improve its financial performance from a net loss of $3.49 per share in 1983 to a net gain of $1.28 per share in 1984. In addition‚ Harnischfeger has appeared to have achieved a majority of its desired outcomes from each of its four changes as shown below. • Harnischfeger’s desired outcomes from hiring a new COO
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In order to recover from losses‚ Harnischfeger made several changes starting in1983. He restructured the top management by creating the position of chief operating officer. To deal with the short-term liquidity problem‚ he decided to cut costs by reducing staff from 6900 to 3800‚ reducing bonus to staff‚ liquidating the excess inventory‚ prolonging payment to creditors and permanent shutting down of an equipment plant at Escanaba. In 1984‚ there was a liquidation of last in first out (LIFO) inventory
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Outflows Small‚ midsized‚ and large businesses need effective controls to ensure that the business has the lowest risk rate possible. The lower the risk‚ the less likely that fraud would occur. In this analysis‚ Learning Team B will provide a proposal for appropriate controls to cover cash‚ sales‚ accounts receivable‚ inventory‚ and production. The team will discuss some prevention techniques to reduce these risks and make recommendations in areas that will help controls within the organization.
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