The first one I figured out is “N”- commercial bank. N- there is no inventories in commercial bank. Compare to the other factor‚ accounts receivable occupies the biggest portion about 90 percent‚ which means commercial bank loan money to clients. As a result‚ it has a very long receivable collection period for 4071 days. In the meanwhile‚ clients would save money into commercial bank which lead to high notes payable-73%. There are 3 industries without inventories left.(M‚E‚G) M- In comparison
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Financial Account receivables not being maintained properly Low in Operating Cash Flow Theft on the cash collection (En Munir) 1. 2. Leadership BOD didn’t take any legal actions towards En. Selamat. There is a conflict of interest-Between En. Selamat and the Director of Gold Cold S/B which is En. Azman. There were best friends and Gold Cold S/B is one of the major customer. Internal Control En. Selamat still continued to supply the chicken to Cold Gold S/B even though the customer
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decreased its operating and cash cycle‚ other factors were found to have contributed to the shortage of funds. From the analysis‚ we were able to conclude that the main reasons for the firm’s insufficient funds were due to its slower collection of accounts receivable‚ higher costs of goods sold‚ heavy reliance on debt financing and most importantly a growth rate that is not sustainable. From Exhibit 1 in the Appendix‚ the current and quick ratios have been declining since 1988; furthermore
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result in permanent current assets and some seasonal current assets being financed using long-term securities. a. True b. False 2. For a zero-growth firm‚ it is possible to increase the percentage of sales that are made on credit and still keep accounts receivable at their current level‚ provided the firm can shorten the length of its collection period sufficiently. a. True b. False 3. Which of the following statements is CORRECT? a. Trade credit is provided only to relatively large‚ strong firms. b
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Compensating Balance. Wilson Company borrows $500‚000 from the bank and is required to maintain a 15 percent compensating balance. Further‚ Wilson has an unused line of credit of $200‚000‚ with a required 11 percent compensating balance. What is the total required compensating balance the firm must maintain? SOLUTION ð$500‚000 _ 0:15Þ þ ð$200‚000 _ 0:11Þ ¼ $97‚000 Proceeds of Loan. Assume the same information as in Problem 5.4‚ except that interest is deducted in advance. (a) What is the
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projected earnings if a company were to sell off parts of its operation‚ merge with another company‚ or beginning a new venture. When a performance statement is used a company is able to get a broad view of the future level of receivables‚ payables‚ inventory and other corporate accounts such as anticipated profits and borrowing requirements. The pro forma statements have a process of presenting financial projections for a specific time period. There are standard formats that are followed when constructing
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The following items appeared in the accounting records of Triguero’s‚ a retail music store that also sponsors concerts. Classify each of the items as an asset‚ liability; revenue; or expense from the company’s viewpoint. Also indicate the normal account balance of each item. Classification Normal Balance a. Amounts paid to a mall for rent. E Debit b. Amounts to be paid in 10 days to suppliers. L Credit c. A new fax machine purchased for office use. A Debit d. Land
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Corporation for 2015: Credit sales during the year $1‚600‚000 Accounts Receivable—December 31‚ 2015 235‚000 Allowance for Doubtful Accounts—December 31‚ 2015 18‚000 Bad debt expense for the year 11‚000 What amount will Wang show on its year-end balance sheet for the net realizable value of its accounts receivable? A. $253‚000 B. $235‚000 C. $224‚000 D. $217‚000 3. The data below is for Music Corporation for 2015. Accounts receivable - January 1‚ 2015 $236‚000 Credit sales during 2015 820‚000 Collections
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easily and used up or liquidated within one year of a company operating cycle. Current assets are considered short term and include cash on hand‚ cash in a bank account‚ current debts. Current assets are items listed on the balance sheet in the order of liquidity which include cash‚ temporary investments‚ accounts receivable‚ inventory and supplies. Any asset which is not easy to convert to cash or not expected to become cash within the next year is a noncurrent asset. Non-current assets
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for $5‚000‚ paying $1‚000 in cash and the balance of $4‚000 on account. 3. Paid $750 in cash for supplies. 4. Earned $9‚500 in revenue‚ receiving $4‚100 in cash and $5‚400 on A/R. 5. Paid $1‚500 in cash on accounts Payable. 6. Paid $2‚000 in cash dividends to stockholders. 7. Paid $800 in cash as expenses (rent). 8. Earned $450 in cash from consumers on account. 9. Paid $3‚000 as salaries. 10. Incurred $300 of utilities expense on account. (b) Service Revenue 9‚500 Dividends -2‚000 Rent Expense -800
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