Problem 4-3. Luft Corporation’s accounts had the following beginning balances: Account | | Dr. | | Cr. | Accounts Payable | | | | $ | 3‚070 | Accounts Receivable | | $ | 2‚160 | | | Accumulated Depreciation | | | | 2‚800 | Allowance for doubtful accounts | | | | 70 | Cash | | | | 1‚440 | | | Fixed Assets (at cost) | | | 6‚200 | | | Inventories | | | | 1‚730 | | | Note Payable (current) | | | | | 600 | Owner’s Equity | |
Premium Generally Accepted Accounting Principles Accounts receivable Balance sheet
ACTIVITY 2.4 Q1 (A number of alternative solutions are possible) a) 1. Collected amount due from a customer (increase cash‚ decrease receivables). 2. Purchased land for cash (increase land and decrease cash). b) Paid amount due a creditor (decrease cash‚ decrease accounts payable). c) 1. Owner withdrew cash (decrease cash‚ decrease owner’s capital). 2. Paid rent (decrease cash‚ decrease owner’s capital). 3. Reflected supplies expense (decrease supplies on hand‚ decrease owner’s capital). d) Borrowed
Premium Accounts receivable Generally Accepted Accounting Principles Balance sheet
carrier‚ the company Conclusion #1 The company has sold its accounts receivable to a nonconsolidated multi-seller securitization vehicle. In return‚ the company received cash and beneficial interest to reduce its own bank debt. During the year‚ $11 million of receivables were sold. How is this transaction treated in the cash flow statement? In addition‚ is there a timing issue? Issue #2 The company has sold its accounts receivable to a nonconsolidated multi-seller securitization vehicle. In return
Premium Cash flow statement Accounts receivable Accounts payable
Riordan Manufacturing Executive Summary Ryan Schnabel The University of Phoenix CIS 319 Computer & Information Processing Dave Karpinsky March 24‚ 2005 Executive Summary: As a Fortune 1000 enterprise‚ and an industry leader in the field of plastic injection molding‚ Riordan Manufacturing‚ offers state-of-the art plastics design capabilities through its facilities in San Jose‚ California; Albany‚ Georgia; Pontiac‚ Michigan; and Hang Zhou‚ China. Currently‚ Riordan’s COO‚ Hugh McCauley‚ and
Premium Supply chain management Accounts receivable Supply chain
P9-4A Wall Inc. uses the allowance method to estimate uncollectible accounts receivable. The company produced the following aging of the accounts receivable at year end. Number of Days Outstanding Total 0-30 31-60 61-90 91-120 Over 120 Accounts receivable $375‚000 $220‚000 $90‚000 $40‚000 $10‚000 $15‚000 % uncollectible 1% 4% 5% 8% 10% Calculate the total estimated bad debts based on the above information. Total Accounts receivable % uncollectible Estimated bad debts $375‚000 0-30 $220‚000 1% 31-60
Premium Accounts receivable
Chapter 7 Inventories 6. Ending inventory is made up of the oldest purchases when a company uses a. first-in‚ first-out b. last-in‚ first-out c. average cost d. retail method 11. The inventory method that assigns the most recent costs to cost of goods sold is a. FIFO b. LIFO c. Average d. specific identification 12. Inventory costing methods place primary emphasis on assumptions about a. flow of goods b. flow of costs c. flow of goods or flow of costs depending on the method d. neither flow
Premium Balance sheet Accounts receivable Generally Accepted Accounting Principles
occurrence Audit Objectives: Substantiate the existence of receivables and the occurrence of revenue transactions. Prove none of the account receivables are fictitious. Completeness Audit objectives: Establish the completeness of receivables and revenue transactions. Rights and obligations Audit objectives: Determine the client has rights to the recorded receivables. Prove the accounts receivable are collectible in the normal course of business and
Premium Accounts receivable Generally Accepted Accounting Principles Balance sheet
label product to Fountain of Youth Spas increased SNC’s EBIT margin‚ only modestly resulting in increased accounts receivable and inventory balances. Revenue’16’17’1801K2K Opportunity EBIT’16’17’180250500 Opportunity Free Cash Flow’16’17’180-500-250250 Phase 1: 2013 - 2015 Synopsis You selected Acquire a New Customer‚ and Leverage Supplier Discount and declined Tighten Accounts Receivable‚ and Drop Poorly Selling Products . Below is a synopsis of how each opportunity affected your Working Capital
Premium Marketing Accounts payable Accounts receivable
Level of Learning: 1 9. A decrease in cash dividends payable means that dividends declared were less than dividends paid. Answer: True Learning Objective: 4 Level of Learning: 2 10. When one enters a $50‚000 credit entry to the Land account in a spreadsheet for the statement of cash flows‚ it
Premium Generally Accepted Accounting Principles Revenue Cash flow statement
CH. 3 HOMEWORK DISCUSSION QUESTION 3‚ 4 & 5 3.) Bill Simon says‚ “We should get rid of the FASB and SEC since free market forces will make sure that companies report reliable information.” Do you agree? Why or why not? I disagree for several reasons. One‚ investors view profits a measure of managers’ performance‚ therefore giving managers an incentive to use their accounting discretion to distort reported profits by making biased assumptions. Many top managers receive bonus compensation if they
Premium Balance sheet Accounts receivable