30 days while his accounts receivables are paid in average every 42 days. It is not necessary to explain what paying around hundred suppliers every 10 days represent to cash flows if the company is receiving payments every 42 days‚ this means that the company pays 4 times at 1 time receiving. This is‚ for sure‚ the main reason why the company is losing liquidity and need to borrow money to banks. See Table 5. Furthermore‚ we can see that the average rotation on accounts payables is
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for accounts‚ receivables and payables‚ including general ledger coding‚ inputting invoices to a payable system‚ writing checks and posting payments to accounts. However‚ the qualifications in becoming an accounting specialist requires a certain amount of education and experience. In this career field the responsibility in the financial aspect is challenging for a person; therefore a person has to be determined‚ have learning abilities‚ and growth to become an accounting specialist. Accounts receivables
Free Bachelor's degree Academic degree Accounts payable
400+165‚833.33=$536‚633.33—inv.* Account Receivable /Inventory =1‚359‚000/2‚756‚000=0.49 Account Payable /Inventory =512‚000/2‚756‚000=0.19 Account Receivable*=0.49*536‚633.33(inv1)=$262‚950.33—A/C* Account Payable*=0.19*536‚633.33(inv1)=$101‚960.33—A/P* Working Capital Current assets-Current liabilities =inv.*+(A/R*-A/P*)=536‚633.333+(262‚950.33-101‚690.33)=$697‚623.33 697‚623.33*23.5%(cost rate of capital)=$163‚941.48 51435069850Account Receivable‚ Account Payable and Inventory represented here
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to be accounted for‚ the cost of maintaining records for each item of merchandise becomes very prohibitive. * Purchases of merchandise increase Purchases. * Separate accounts used to record purchases‚ freight costs‚ returns & allowances‚ and discounts. * Company does not maintain a running account of changes in inventory. * Ending Inventory is determined by physical count. * Determining Cost of Goods Sold under a periodic system Merchandise inventory‚ beginning
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Risks • Cash transactions may not be recorded accurately • Cash may not exist Steps 1. Confirm selected bank accounts and special arrangements Select bank accounts for confirmation in order to obtain a moderate to low level of assurance that the aforementioned audit objectives are achieved. Bank confirmations should be sent to all banking relationships to identify accounts not included in the general ledger. Confirmation requests should be sent under our control and‚ second requests
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000 in New Inventory $5‚000‚000 – 2‚000‚000 = $3‚000‚000 The company will free up $3 million in free cash flow. 16-2 Receivables Investment Receivables = (DSO) * (Average Daily Sales) X = (17 days) ($3‚500) X = $59‚500 is the average accounts receivable 16-3 Cost of Trade Credit Nominal Cost of Trade Credit = (Discount %) / (100-Discount %) x (365) / (Days Credit is outstanding – Discount Period) X = 3 / (100 - 3) * 365 / (30-15) X = 3 / 97 * 365 / 15 X = .0309278350515464 *
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Copyright © 2011 John Wiley & Sons‚ Inc. Weygandt‚ Accounting Principles‚ 10/e‚ Solutions Manual (For Instructor Use Only) 1-33 PROBLEM 1-1B (a) VINCE’S TRAVEL AGENCY | | | | | | | | | | | | | Owner’s Equity | | | Cash | + | AccountsReceivable | + | Supplies | + | Equipment | = | AccountsPayable | + | Owner’sCapital | – | Owner’s Drawings | + | Revenues | – | Expenses | | | | | | | | | | | | | | | | | | | | 1.2.3.4.5.6.7.8.9.10. | | +$15
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Department Jennifer Buster Bradley Lloyd LuEllen Robert Spare Sam Receiving RO RO RO RO RO F BP RO Shipping RO F RO RO F RO BP RO Sales F RO RO RO RO N BP RO Accounts Payable BP N RO N N N BP RO Jennifer’s full time position as Sales would need Sales access for her primary position. She should only have By Position access to Accounts Payable when she is working that position. She would need Read Only for Shipping and Receiving in order provide customers with information on inventory availability
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1 Chapter 7: Audit Evidence I. Definition: Evidence – information used by the auditor to draw conclusions on the fair presentation of the financial statements. Audit objectives suggest the types of evidence to accumulate. II. Decisions on evidence accumulation A. Which audit procedures to use. General Objectives: Six TRAOs Eight BRAOs Four PDAOs Accounting Cycles: Five Management Assertions Specific Objectives: At least: Six TRAOs Eight BRAOs Four PDAOs Audit Procedures: At least one
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Receivable: o December’s Sales were $10‚000 o 80% of sales is collected in the quarter in which they were made o 20% of sales collected in the following quarter in which they were made o Bad Debts is negligible Accounts
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