procedures on an annualised basis and compared the results to industry averages and last year’s audited financial information. The results are given below : Airclean Sdn Bhd Industry Average Ratio 2012 2011 2012 1. Current ratio 1.7 2.2 2.7 2. Days in receivables 93 68 55 3. Inventory turnover ratio 4.3 5.5 5.8 4. Debt to equity ratio 47% 38% 30% 5. Gross margin 43% 35% 39% Required : (i) Discuss the conclusions that you can draw from the above ratios about Airclean’s financial position. (10 marks) (ii)
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predetermined totals are used to control postings. D.(2)- As goods leave the shipping dock‚ the system generates a bill of lading and associated sales invoice‚ which is automatically recorded in the sales journal. 14-23 A. (4)- Debit entries in the accounts receivable master file are correctly supported by sales invoices. B. (4)- the shipping clerk’s file of duplicate copies of bills of lading. C. (2)- Vouch a sample of recorded sales from the sales journal to shipping documents. 14-24 1. a.Recorded
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Building C has the lowest present value which means that the lowest costs. E 7-2 (Determining Cash Balance) 1. Only checking account balance of $925‚000 should be reported as cash. Certificate of deposit $1‚400‚000 is a temporary investment‚ short – term paper (penalties to early conversion to cash). Cash advance to subsidiary of $980‚000 is treated as receivables (assumed to
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in Retained Earnings ($15‚700 - $0) $15‚700 Add: Dividends 400 Profit $16‚100 PROBLEM SET A 2.2 (a) Bell Consulting Pty Ltd Assets Liabilities Equity Date Cash + Accounts Receivable + Supplies + Office Equipment = Bank Loan + Accounts Payable + Share Capital + Retained Earnings HAD GIVEN IN CLASS. $13‚800 + $1‚000 + $500 + $2‚400 = $5‚000 + $2‚400 + $10‚000 + $300
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confirming a client’s year-end accounts receivable (b) performing year-end sales cut-off tests. a) The primary audit objectives of confirming a client’s year-end accounts receivable include occurrence and accuracy of realizable value. Auditors would like to make sure that the transaction generating the accounts receivable actually occurs‚ and that the receivables are recorded at accurate value for the current reporting period. Usually they will send accounts receivable confirmations to client’s
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940. $3‚000. 3 of 25 The balance shown on a bank statement is always equal to the month-end balance of a company’s cash account in the general ledger. True False 4 of 25 The allowance for Doubtful Accounts is called a valuation account or contra-asset account and normally has a credit balance. True False 5 of 25 The allowance for Doubtful Accounts is an expense account and appears on the income statement. True False 6 of 25 In a perpetual inventory system‚ two entries usually are made to
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Assignment #3 Accounts Receivable and Credit Sales Part A--Optional Exercises 1. Credit Sales System Flowchart Peach Blossom Cologne Company Credit Sales system Flowchart December 31‚ 2009 2. Analysis of Internal Control Strengths CSF‑1 Peach Blossom Cologne Company Credit Sales System Internal Control Strengths Strength Segregation of Functions 1. Segregation among sales‚ stores‚ shipping‚ and accounts receivable. Authorization 2. Credit sales are approved before shipment
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new customer. Sales were increased significantly which in return also increased accounts receivable and inventory balances. This was a good decisions because as sales increase so does income. Additional accounts receivable and inventory can cause more overhead but can always be controlled. Leveraging Supplier Discounts With a new customer top-line growth was achieved. With the added expenses of more accounts receivable and inventory needs the cash flow for these three years was drained. It was however
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goods:- Consignment account (With the cost of goods) To Goods sent on consignment account (2) On payment of expenses on dispatch:- Consignment account (With the amount spent as expenses) To Bank account (3) On receiving advance: Cash or bills receivable account (With the amount cash or bill) To Consignee’s personal account (4) On the consignee reporting sale (as per A/S):- Consignee’s personal account (With gross proceeds
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Tugas 04 - Accounting for Managers Kelompok 4: 1. Haris Pratama Loeis 1306497062 2. Ibrahim Adam 1306497075 3. Jati Perdana 1306497144 4. Maydhani Arnia E.P. 1306497226 5. Meiryanti Andryani 1306497251 Problem 5-4 (in USD) Days Account Outstanding Amount Probability of Collection Allowance Amount Write-Off Amount Less than 16 450‚000.00 0.99 4‚500.00 - 16 to 30 150‚000.00
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