the cost of employee turnover to for-profit organizations has been estimated to be between 30% (the figure used by the American Management Association) to upwards of 150% of the employees ’ remuneration package.[4] There are both direct and indirect costs. Direct costs relate to the leaving costs‚ replacement costs and transitions costs‚ and indirect costs relate to the loss of production‚ reduced performance levels‚ unnecessary overtime and low morale. The true cost of turnover is going to depend
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Ratio Analysis Memo July 9‚ 2012 Memo To: From: Date: July 9‚ 2012 RE: Kudler Fine Foods ratio analysis One of the things that we will be going over is some of the ratios for Kudler Fine Foods through Liquidity‚ Profitability‚ and solvency ratios. We will look into some of the finding that were found through these ratios and discuss them. One of the things that we found was where Kudler Fine Foods’ position is with these ratios. The first area that we look at is profitability
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CNBC Investopedia. (2011). Retrieved from http://www.investopedia.com/terms/c/currentratio.asp Investopedia Investopedia. (2012). Retrieved from http://www.investopedia.com/terms/r/returnonequity.asp#axzz28ZHmfXpq Investopedia. (2012). Price-earnings ratio. Retrieved from http://www.investopedia.com/terms/p/price-earningsratio.asp Investopedia Investopedia. (2012) Retrieved from http://www.investopedia.com/terms/e/earnings-power.asp#axzz28ZHmfXpq Investopedia. (2012) Retrieved from http://www.investopedia
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The ability to sell inventory and collect receivables is critical. In this topic‚ we discuss three ratios that measure this ability. Inventory Turnover. Companies generally strive to sell their inventory as quickly as possible. The faster inventory sells‚ the sooner cash comes in. Inventory turnover‚ measures the number of times a company sells its average level of inventory during a year. A fast turnover indicates ease in selling inventory; a low turnover indicates difficulty. A value of 6 means
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Accounting for Receivables Definition Receivables are amounts due from other persons or entities. Receivables are highly liquid‚ which means it is expected that they will be converted into cash quickly‚ and are classified as current assets. Types of Receivables Accounts Receivable: amounts due from customers for sales on credit. Businesses sell to customers on credit in an attempt to increase their sales. Also called Trade Debtors. Bills Receivable: similar to accounts receivable but bills receivable
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Accounts receivable is a legally enforceable claim for payment from a business to its customer/clients for goods supplied and/or services rendered in execution of the customer’s order. These are generally in the form of invoices raised by a business and delivered to the customer for payment within an agreed time frame. Accounts receivable is shown in a balance sheet as an asset. It is one of a series of accounting transactions dealing with the billing of a customer for goods and services that the
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CHAPTER 7: NOTES RECEIVABLE * Notes receivable are claims supported by formal promises to pay usually in the form of notes. * A negotiable promissory note is an unconditional promise in writing made by one person to another‚ signed by the maker‚ engaging to pay on demand or fixed determinable future time a sum certain in money to order or to bearer. * Maker is the one who writes the promissory note promising to pay another person‚ known as the payee‚ a definite sum of money. * Notes
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INTRODUCTION: UNIFLEX CABLES LIMITED appointed interns to study the receivables position of their company. I was asked to analyze the data of the past six months starting from October’08 to March’09. I had to analyze the debtors’ payment pattern for that period and find out the reasons why there was a delay in receiving payments from the debtors’. OBJECTIVE OF THE STUDY: • Compare Actual Date of Receipt from customers with the Payment Due Date. • Find out the number of days delay
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Practical Accounting 1 Cash and Receivables -1. Assume the following facts for Kurt Company: the month-end bank statement shows a balance of P40‚000: outstanding checks totaled P2‚000; a deposit of P8‚000 is in transit at month-end; and a check for Pf400 was erroneously charged against the account by the bank. What is the correct cash balance at the end of the month? a. P33‚600 c. P45‚600 b. P34‚400 d. P46‚400 2. The August 31 bank statement of K‚ Inc. showed a balance of P113‚000. Deduction in
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PROFITABILITY RATIOS RETURN ON INVESTMENT (ROI): The prime objective of making investments in any business is to obtain satisfactory return on capital invested. Hence‚ the return on capital employed is used as a measure of success of a business in realizing this objective. Return on Investment establishes the relationship between the profit and the capital employed. It indicates the percentage of return on capital employed in the business and it can be used to show the overall profitability
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