3. Apply and evaluate financial techniques for management planning‚ decision making and control in the short‚ medium and long term. | Exam | QUESTION 1 Delta Ltd is a medium size firm dealing with furniture business. The condensed financial accounts for the last three years are summarized below: Income Statement for the financial year ended 31 December as follows: FY | 2009 | 2010 | 2011 | | $’000 | $’000 | $’000 | $’000 | $’000 | $’000 | Sales (all on credit) | | 500 | | 750 |
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these firms‚ in terms of accounts receivables‚ allowance for bad debt and uncollectible debt expense. This is especially so when customers are unable to repay their debts. In this paper‚ we will examine the 2008 financial statement of four companies in the retail industry‚ namely Courts Singapore Private Limited‚ Dairy Farm International Holdings Private Limited‚ Isetan Singapore Private Limited and OSIM International Limited. We will look at the amount of receivables of each company. In particular
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net working capital requirements. Yet‚ despite its importance‚ few small business managers can dedicate significant time managing cash. Most develop a set of techniques to avoid cash crises‚ but many of these “systems” are as basic as matching receivables to payables. Most cash management systems in small companies employ a fraction of the tools available to them‚ as small business managers rarely have a forum to transfer knowledge about management practices. While each company has certain strategies
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Bad debts expense 9‚000 Allowance for doubtful accounts 9‚000 To record allowance for credit losses (0.01 x $900‚000 = $9‚000). b. Current Assets: Accounts receivable $150‚000 Less: Allowance for doubtful accounts 19‚200 $130‚800 E8-2A. Credit Losses Based on Accounts Receivables (LO1‚ LO2) a. General Journal Date Description Debit Credit Dec. 31 Bad debts expense 2‚930 Allowance for doubtful accounts 2‚930 To record allowance for credit losses:
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also gather information in a real-time format. Checks and Balances * Accounting managers and supervisors use an accounting information system to separate tasks and ensure controls are in place for different accounting functions. Accounts payable‚ accounts receivable‚ payroll‚ departmental financial data‚ fixed assets and purchasing each work under separate modules in an advanced accounting system and demand individual handling processes and procedures. Each of these individual modules feed summarized
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CHAPTER ONE: INTRODUCTION 1.1 Introduction Working capital is an important issue during financial decision making since it is being a part of investment in asset that requires appropriate financing investment (Zariyawati et al‚ 2009). However it is always being ignored by companies because it is related to short term period. The companies or managers should understand that items or transactions in short term period may give significant impact in future if the responsible managers does not
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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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12/31/2012 01/05/2013 Num 3 Account Accounts Receivable Accounts Receivable Total Ahmadrand‚ Ela Andrews Productions Invoice Accounts Receivable 12/31/2012 Total Andrews Productions Clark‚ Binsley‚ and Basil‚ CPA Invoice 12/31/2012 Invoice 01/05/2013 5 Accounts Receivable Accounts Receivable Total Clark‚ Binsley‚ and Basil‚ CPA Creative Products Invoice 12/31/2012 Accounts Receivable Total Creative Products Design Creations Invoice 12/31/2012 Accounts Receivable Total Design Creations Duncan
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Gulfa Mineral Water (Company 2) Comment I PROFITABILITY RATIOS 1) Profit Margin on Sales 13.39% 6.08% Above average 2) Return on Assets 19.10% 5.63% Good 3) Return on Equity 26.68% 8.81% Above average II ASSET MANAGEMENT RATIOS 4) Accounts Receivables Turnover 14.43 times 4.52 times Above average 5) Average Collection Period 25.29 days 80.80 days Very good 6) Inventory Turnover 17.68 times 5.17 times Below average III LIQUIDITY RATIOS 7) Current Ratio 2.30 times 2.33 times Good
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literature 1.1 – Account Receivable(AR) (AR and Management Policy: Theory and Evidence – Shehzad L. Mian & Clifford W. Smith‚ Jr) The basis of my subject “Bad debt expense estimation model” stems from account receivable. Account receivable is the term used by companies to describe money owed to them by clients or customers for goods and services provided. Bad debt expense is that portion of account receivables that will not be collected. Therefore‚ without any receivables a company will not
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