Questions: Accounting for Managers

* Decrease in cash from $1,519.60M to $833.40M used to pay off external borrowings and pay out dividends.

Accounts receivable (net) increased by $500,000 during the year. This increase has what effect on cash flow?

This ratio takes into consideration the current assets and current liabilities from the balance sheet

To find the current ratio you need to look on the company’s balance sheet. You take the current total assets and divide by the total current liabilities. This gives you your current

(TCO C) Debt securities sold to investors that must be repaid at a particular date some years in the future are called:

Q1. Contrast financial and managerial accounting on the basis of user orientation, purpose of information, level of aggregation, length of time period, orientation toward past or future, conformance to external standards, and emphasis on objective data.

Current Ratio shows that the company has $1.80 of current assets for each $1.00 of current liabilities.

The company’s current assets are just over two times its current liabilities, giving it a current ratio of 2.08. This is a sign of financial strength. The Quick ratio (current assets-inventory then divided by current liabilities) is 0.96. This measures the company’s ability to come up with cash in a matter of hours to days. It has working capital (current assets-current liabilities) of $7,508,998. With a working capital per dollar of sales of 15%. This is adequate given the high inventory turn.

|Selling Price per|Year 1 Sales Units |Year 1 Year End Stock units |Year 2 Unit Sales |Sales Revenue Year 1 |

The Debt to Total Asset Ratio is a ratio that shows the financial risk of a company by

Balance Sheet ratios include a current ratio of 2.755, this ratio shows the relationship of current assets to current liabilities. A ratio of 2.755:1 means that for every $1 in current liabilities there are $2.76 of current assets. Another important financial ratio is to look at the working capital. Working capital is calculated by subtracting current liabilities from current assets. CMC’s working capital at year end was $63,850.29.

On January 1, Puckett Company paid $2.64 million for 88,000 shares of Harrison’s voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $2 per share during the year and reported net income of $613,000. What is the balance in the Investment in Harrison account found in Puckett’s financial records as of December 31?

Feedback: Management accounting is the preparation and use of accounting information systems to achieve the organization's objectives by supporting decision makers inside the enterprise. LO 4

On 1 July 2011, Kookaburra Ltd acquired an item of plant at a cost of $200 000. The plant has an

Feedback:All of the managers listed here are directly involved in the provision of goods or services and are therefore in line positions. Managers in staff positions are only indirectly involved in the