inventory policy are measured by number of days accounts receivable‚ accounts payable and inventories‚ and the cash conversion cycle as a comprehensive measure of working capital management. He founds a significant negative relation between gross operating income and the number of days accounts receivable‚ inventories and accounts payable. Thus‚ he suggests that managers can create value for their shareholders by reducing the number of days accounts receivable and inventories to a reasonable minimum
Premium Working capital Accounts receivable Cash conversion cycle
9: 3‚ 8‚ 9‚ 11 3. Fill in the blanks (_______) with the correct entries. Assets Liabilities and Stockholder’s Equity Current assets Current liabilities Cash 250‚000 Accounts payable Accounts receivable Notes payable to banks (1‚340‚000 less) Accrued wages _130‚000 Allowance for doubtful accounts Taxes owed 100‚000 Of $20‚000) 1‚320‚000 Total current liabilities 1‚250‚000 Inventory 1‚410‚000 Long-term debt ________ Total current assets 2‚980‚000 Stockholders’
Premium Balance sheet Generally Accepted Accounting Principles Accounts receivable
INTRODUCTION The following report describes the activities carried out during a 6-week‚ Full-time internship at the American university of lebanon‚ Finance Department. The document contains information about the organization and the responsibilities performed throughout the period between: the 1st of July until 31st of July‚ 2014. The first part of the report offers an overview of the organization‚ and then describe the process which has been implemented by finance department according to the
Premium Accounts receivable Invoice University
Development Project at consumer and Industrial Products‚ Inc. Situation Consumer and Industrial Products‚ Inc manufacture a variety of different products for individuals and businesses. Due to ineffective accounts payable system‚ Consumer and Industrial Products‚ Inc started a new project called Payables Audit Systems (PAS). The process of beginning this new project was taken very seriously. Roles were assigned and defined. Ted Anderson was the director of the project. Peter Shaw was assigned the responsibility
Premium Project management Accounts payable Risk management
SURECUT SHEARS 1. What assumptions did Mr. Fischer make when he prepared the forecasts shown in case Exhibits 1 and 2? Were these assumptions reasonable? Mr. Fischer made assumptions for both the income statement and the balance sheet. Income statement We calculate the percentage of variation from one month to another in terms of sales and gross profit. | July | Aug | Sept | Oct | Nov | Dec | Jan | Feb | March | April | May | June | Sales | 2100 | 2700 | 3300 | 4500 | 3900 |
Premium Balance sheet Accounts receivable Revenue
include cash balance‚ inventories‚ and accounts payable. There was a drastic increase in the cash balance in 1985 from the cash balance in 1984 and it dropped in 1986 and 1987. This suggest that company did not leave much cash to operate. Inventories on hand increased from 1984-1987. Inventory turnover ratio dropped from 4.50 in 1986 to 3.22 in 1987. Days to sell inventory increased from 81.11 days in 1986 to 113.35 days in 1987. Company’s accounts payable and short-term debt had a huge increase
Premium Generally Accepted Accounting Principles Balance sheet Accounts receivable
achieve these objectives‚ SAPP has the following characteristics 1. Basis of accounting 2. Double entry system 3. Integrated and computerized system 4. Decentralized implementation of accounting 5. Standard chart of accounts SAAP divided two subsystem 1. Central accounting system (SiAP) is part of the SAPP conducted by the directorate of information and accounting (DIA) which will result in the financial statements for the accountability of the central government
Premium Income statement Financial statements Generally Accepted Accounting Principles
assumption supports the method used. If incorrect‚ identify which principle or assumption has been violated. E1-5 Meredith Cleaners has the following balance sheet items. Accounts payable Accounts receivable Cash Notes payable Cleaning equipment Salaries payable Cleaning supplies Common stock Answer: I was not clear on what three situations to reference since there was only one listed next to E1-5. However all the items
Premium Balance sheet Accounts receivable Generally Accepted Accounting Principles
possible price. It will order the goods from that vendor. It will then issue an approved purchase order and send it to the chosen vendor as the vendor’s authorization to ship the goods. The purchasing department sends a copy of the purchase order to accounts payable and to the receiving (warehouse) department that will accept the purchased goods when they arrive. In a good system‚ the quantity of order goods does not appear in the receiving department’s copy‚ forcing that department to manually count the
Premium Accounts receivable Invoice Accounts payable
statement. Assumptions (Balance Sheet) 6. Accounts Receivable Assumption is okay since there is no reason to expect a change in customer behavior and sales are the same as the previous year 7. Investments in Plant increase by $3‚000‚000 during the first 2 months of the forecast. This assumption is reasonable as it is predicated that the modernization project will be completed in August. No other investments are expected to be needed. 8. Accounts Payable‚ he assumes a 30-day payment period for
Premium Balance sheet Accounts receivable Accounts payable