takes the form of additional notes payable from its commercial bank‚ for the same period. Using the assumptions given in the case‚ all elements of income statement and balance sheet can be projected for next three years 2010‚ 2011 and 2012. Sales cycle of the products of the company is such that sales of a particular product increases initially for few years and then starts to decline as the new technology introduced by the competitors renders that particular product obsolete. The current product
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operating a branch in Davao for a year. Shipments are billed to the branch at cost. The branch carries its own accounts receivable‚ makes its own collections‚ and pays its own expenses. The transactions for the year are given effect to in the trial balance below: Cash P 8‚500 Home Office current P 35‚000 Shipments from home office 135‚500 Accounts Receivable 25‚000 Sales 147‚000 Expenses 13‚500 _______ P 182‚000
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nearby the computer called Susan to show the customer’s account‚ and verifying that the payment for the $ 5‚000 was in fact recorded in the customer’s account. On this scenario the person who help to find out what was wrong with the management of the company notice that the payment for $5‚000 for May 10 was entered after May 17 and May 23 and it made her confused. The computer malfunction after that checking made by her and the accounts receivable file was lost and showing a command “file not found”
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Chapter 16 “How Well Am I Doing?” Financial Statement Analysis Solutions to Questions 16-1 Horizontal analysis examines how a particular item on a financial statement such as sales or cost of goods sold behaves over time. Vertical analysis involves analysis of items on an income statement or balance sheet for a single period. In vertical analysis of the income statement‚ all items are typically stated as a percentage of sales. In vertical analysis of the balance sheet‚ all items are typically
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the accounts of Fleury Corporation on December 31‚ 2005‚ the end of the current reporting year. Dr. Cr. Cash $ 116‚000 Accounts receivable‚ trade 337‚000 Short-term investment in marketable securities 440‚000 Inventory of merchandise‚ FIFO 1‚295‚000 Prepaid expense (short term) 11‚000 Investment in Hydro One Bonds (Held to Maturity – June 30‚ 2008) 147‚000 Advances to suppliers (short term) 24‚000 Dividends (cash) declared during 2005 120‚000 Rent receivable 34
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furniture. (f) Issuance of capital stock. (g) Amortization of intangible assets. (h) Purchase of treasury stock. (i) Issuance of bonds for land. (j) Payment of dividends. (k) Increase in interest receivable on notes receivable. (l) Purchase of equipment. Question 2 Your answer is correct. The income statement of Rodriquez Company is shown below. RODRIQUEZ COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31‚ 2012 Sales
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Hachey Company has accounts receivable of $95‚100 at March 31‚ 2007. An analysis of the accounts shows these amounts. Balance‚ March 31 Month of Sale 2007 2006 March $65‚000 $75‚000 February 12‚600 8‚000 December and January 10‚100 2‚400 November and October 7‚400 1‚100 $95‚100 $86‚500 Credit terms are 2/10‚ n/30. At March 31‚ 2007‚ there is a $2‚200 credit balance in Allowance for Doubtful Accounts prior to adjustment. The company uses the percentage of receivables basis for estimating
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Aramis Company has accounts receivable of $800‚000 and an allowance for doubtful accounts of $40‚000. On January 16‚ 2008‚ Aramis Company determined that its receivable from Ramirez Company of $6‚000 will not be collected‚ and management authorized its write-off. Instructions (a) Prepare the journal entry for Aramis Company to write off the Ramirez receivable. (b) What is the net realizable value of Aramis Company’s accounts receivable before the write-off of the Ramirez receivable? (c) What is the
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Week 8 CP-W07 Accounts receivables and cash Ang Hui Shin A0102395L Chimene Lim A0092043N Estee Amanda Tan A0083721J Tay Kai Zhi Angie A0100488J CP-W07 1) Account receivables turnover ratio for 2012 Net sales for 28 January 2012 4‚158‚058 thousands Receivables at 29 January 201174‚777 thousands Receivables at 28 January 2012 89‚350 thousands Average accounts receivable (89‚35074‚777)/2 82063.5 thousands Account receivables turnover ratio Net Sales / Average Accounts Receivable 4‚158‚058/
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Peregrine was done by inflating revenue by booking revenue when sales never occurred. By recognizing revenue from sales that never occurred‚ the accounts receivable balance and net income were fraudulently overstated; the accounts receivable would never be collected‚ because the merchandise was never sold. To cover up their high‚ outstanding‚ accounts receivable balance as a result of booking sales that did not occur‚ Peregrine fraudulently engaged in financial agreements with banks. Evidently‚ Peregrine
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