Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (8‚400 units): ($) 764‚400 Variable expenses: ($) 445‚200 Contribution margin: ($) 319‚200 Fixed expenses: ($) 250‚900 Net operating income: ($) 68‚300 If the company sells 8‚200 units‚ its total contribution margin should be closest to: Merchandise with a sales price of $500 is sold on account with term 2/10‚ n/30. The journal entry to record the sale would
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Buckman 7/28/10 Using a Cash Budget for Planning Purposes Introduction Let me begin by explaining what a cash budget is. A cash budget is a tool that helps individuals and companies forecast a short term financing needs. Investopedia defines a cash budget as‚ “an estimation of the cash inflows and outflows for a business or individual for a specific period of time.” (Cash Budget) A cash budget is used to determine the borrower’s ability to generate cash and repay debt. A cash budget also provides
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between a cash flow statement and a profit and loss account. Which statement gives a better view of organisational performance? Fully explain your choice. There is undoubtedly‚ a clear difference between what is termed “cash” and what “profit” is and by extension a cash flow statement and a profit and loss statements. Notwithstanding these differences‚ each statement gives a different yet important view of organisational performance. Cash according to Holmes et al 2005:166 is “cash in hand
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2.4.3 CASH 2.4.3.1 POLICY 1. The amount of cash kept in the office must be kept to a minimum to reduce the risk of fraud or theft. This amount should be determined by the PO or CO Head of Finance on the basis of regular cash requirements. An imprest petty cash system should be implemente (see Annex 2.4.03 Petty Cash Book template‚ and below Guidelines). 2. The maximum imprest for a petty cash fund should not exceed the equivalent of CHF 2‚000. The PO Representative or Country
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Federigo’s Falcon is a tale of courtly love by Giovanni Boccaccio that takes place during medieval times. The story is about a man named Federigo who lived in Florence and was in love with a women named Giovanna who never paid him any attention even though he would spend allot of money and time trying to impress her. In the middle of the story Giovanna needs Federigo’s help and is the only time that she actually acknowledges him. The theme of the story is to not just acknowledge people when you need
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Assessable income=ordinary income + statutory income. Ordinary income: income deriving from the courts (s6-5) Negative propositions: items that are not income by ordinary concepts: 1.Amounts not convertible into money :In Tennant v Smith (1892) free accommodation provided to a bank manager was held not to be ordinary income because building could not be sub-let and the benefit thereby converted to money. In FCT v Cooke & Sherden (1980) an incentive prize offered by a manufacturer was not income of the
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To what extent might the cash flow statement help to overcome the traditional limitations of financial statement analysis in evaluating the past performance and predicting the future successes or failures of business organisations? Accounting is the major means of organizing and summarizing information about economic activities. The information which is provided by the accounting practices through financial statement analysis‚ provides help to decision makers to take decision. There are
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Profits With no Cash University Dr. Sep 10‚ 2014 Profits With no Cash It is regularly a common thing in business to make profits without having any cash due to several aspects of business. This is happening by the non-cash flow adjustments that are recorded as transactions while no cash flows are involved. It is possible to make business transactions without cash involvement. In credit transactions‚ cash is not usually transacted but the transactions are usually recorded therefore if
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If we imagine about one question In which sector our business is booming most the answer would be certainly the banks. Bank includes all financial institutions‚ one of those principle activities is to take deposits and borrow with the objectives of lending and investing and which are with in the scope of banking or similar legislation. Bank represents a significant and influential sector of business worldwide. Most individuals and organizations make use of banks‚ either as depositor or borrowers
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MEMORANDUM TO: Chief Financial Officer FROM: Controller DATE: August 4‚ 1990 SUBJECT: How to Report Earthquake Damages in the Income Statement CHHS Inc. has suffered extensive damages due to the after math of the October 17‚ 1989 San Francisco Bay Area earthquake that hit at a 7.1 magnitude on the Richter scale. Twelve of the twenty-two stores have been closed for a varying period of time due to the large damages that occurred. In total‚ damages have summed to
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