Accounting: Questions and Answers

6. Note 8 states Harnischfeger’s allowance for doubtful accounts. Compute the ratio of the allowance to gross receivables (receivables before the allowance) in 1983 and 1984. What would the allowance have been if the company maintained the ratio at the 1983 level? How much did the pre-tax income increase as a result of the changed ratio in 1984?

During 2012 sales on account were $145,000 and collections on account were $86,000. Also, during 2012 the company wrote off $8,000 in uncollectible accounts. An analysis of outstanding receivable accounts at year end indicated that bad debts should be estimated at $54,000. The change in the cash realizable value from the balance at 12/31/11 to 12/31/12 was (Points : 2)

Assume that when a purchase of supplies of $2,650 for cash was recorded, both the debit and the credit were journalized and posted as $2,560.

d. The company bought Furnitures and Fixtures (10 years useable life) for cash amounting to USD 15,500.00

24.Which of the following items should not be included in the Cash caption on the balance sheet?

Riordan Manufacturing, an industry leader in the field of plastic injection molding, has facilities in California, Georgia, Michigan and China. The accounting functions are carried out in each individual location, and consolidated for processing in the corporate offices in California. The Georgia and Michigan locations, being newly acquired, are using systems that are not completely compatible with the corporate offices. This is causing problems on many levels and within this paper, Learning Team A will discuss the accounts receivable cycle as Riordan Manufacturing would like to achieve.

A company 's Office Supplies account shows a beginning balance of $540 and an ending balance of $460. If office supplies expense for the year is $3,280, what amount of office supplies was purchased during the period?

A non-cash item is an expense charged against revenues that does not directly affect the cash flow.

What is the accounts receivable balance on Sept 30 (include only net amount to be paid)? Total Sales: $2,360,000.00 Total Reciept $1,671,896.00 Accounts Receivable balanc $688,104.00 e. What are each the short term loan and marketable security balances on Sept 30? f. What is balance of accounts payable on Sept 30 (include only net amount to be paid)? g. calculate DSO and DPO DSO = Accounts Recievable / (total sales / 182 days) DSO = 688104 / (2360000 / 182) DSO = DPO = Accounts Payable / (6 months payable / 182) DPO = 398240 / (1400000/ 182) DPO =

18. A business settles a liability by making a payment with cash. How does paying this liability affect the accounting equation?

Each of the following items may be classified as operating or financing activities under IFRS except

In the accounting analysis part, we will discuss and analyse SUL’s accounting policy by identifying its key accounting policies, assessing the accounting flexibility, evaluating the accounting strategy, evaluating the quality of disclosure, identifying red flags and undoing accounting distortions to evaluate that if SUL’s financial statement is transparent and not misleading. Also, we will compare these elements to its competitors in order to give investors a clearer vision of its accounting quality.

For the first year, the accounts receivable balance is projected to drop by $ 53,875 while the average collection period drops by 16 days between the two quarters. In the second year, there is no projected change on the drop in accounts receivable balance but the drop in average collection period is 12 days.

Your answers to the questions below should be clear, well-written, free of grammar and spelling errors, double-spaced with margins of at least one inch on all sides, and word-processed. In preparing this assignment, you may discuss the issues with each other or with anyone else, but your written answers must be your own work. If you need to quote someone else in your answer, you must give credit to your source. This assignment is due at the beginning of class on February 13, and should be printed and submitted in hard copy in class. No late papers will be accepted. If you cannot be in class on

Accounting is the language of business; the operating budget is the company play book for the coming year. With the operating budget the company can forecast the overall health of the enterprise. Management is able to foresee the financial strength of the company based on the sales revenue, Cost of Goods Sold (COGS), the operation expense that then provides the budgeted income statement. Although good management is required to ensure a company’s fiscal health, the operation budget if well planned is the actual path that will ensure success.