Describe good cash management practices involving inventory purchases
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Select all that apply
Describe good cash management practices involving inventory purchases. (Check all that apply.)
Invoices should be paid on the last day of the discount period.
Inventory should be purchased with cash whenever possible.
Buyers should take advantage of early payment discounts.
Invoices should be paid on the first day of the discount period.
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- Describe the who, what, where, and how of the following scenario: A customer gives his purchase to a sales clerk, who enters the sale in a cash register and puts the money in the register drawer. At the end of the day, the sales clerk gives the cash and the register tape to the cashier.Assume that you are a cashier, and your manager requires that you immediatelyenter each sale when it occurs. Recently, lunch hour traffic has increased, and theassistant manager asks you to avoid delays by taking customers’ cash and makingchange without entering sales. The assistant manager says she will add up cash andenter sales after lunch. She says that, in this way, customers will be happy to, andthe register record will always match the cash amount when the manager arrives atthree o’clock.The advantages to the process proposed by the assistant manager include improvedcustomer service, fewer delays, and less work for you. The disadvantage is that the assistant manager could steal cash by simply recording less sales than the cashreceived and them pocketing the excess cash. You decide to reject her suggestionwithout the manager’s approval and to confront her on the ethics of her suggestion.Propose and evaluate two other courses of action you might consider and explainwhyWalMart and other retailers have computerized cash registers to ring up sales. How does this feature help these firms manage inventory? Purchase prices change over time. When ordering inventory to replace what has been sold, the purchasing agent might find a price increase. Discuss and explain one of the following: First in First Out Last in First Out Weighted Average Cost Specific Identification Lower of Cost or Market
- Required: Using the preceding data: Complete the schedule of expected cash collections. Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases. Complete the cash budget. Complete this question by entering your answers in the tabs below. Required 3 Complete the merchandise purchases budget and the schedule of expected cash disbursements for merchandise purchases.The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 7,200 Accounts receivable $ 18,800 Inventory $ 37,800 Building and equipment, net $ 123,600 Accounts payable $ 22,425 Common stock $ 150,000 Retained earnings $ 14,975 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 47,000 April $ 63,000 May $ 68,000 June $ 93,000 July $ 44,000 Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following sale. The accounts…A store engaged in reselling jewelries would least likely employ which inventory system? a. EOQ b. Two-bin method c. Just in time d. ABC system 7. A grocery store owner selling low value items would be the most interested in this inventory management system: a. EOQ b. Two-bin method c. Just in time d. ABC system 8. Components of a firm’s cash conversion cycle include: a. Average collection period, average age of inventory b. Average payment period, average collection period c. Average age of inventory and average payment period d. Average of age inventory, average collection period and average payment period 9. Which of the following statements is correct with regard to the use of a lockbox system? a. It reduces mail float and clearing float but not payment float. b. It reduces all components of a float. c. It reduces payment and mail float but not clearing float. d. It increases all…Clearly explain the advantages and disadvantages of cash on delivery transactions and credit sales. Relate your answers to the management of accounts receivable. b. What steps should be taken by a business to reduce/eliminate excessive inventory? Explain your answer clearly.
- Assume that you are a cashier and your manager requires that you immediately enter each sale when it occurs. Recently, lunch hour traffic has increased and the assistant manager asks you to avoid delays by taking customers’ cash and making change without entering sales. The assistant manager says she will add up cash and enter sales after lunch. She says that, in this way, customers will be happy and the register record will always match the cash amount when the manager arrives at three o’clock.The advantages to the process proposed by the assistant manager include improved customer service, fewer delays, and less work for you. The disadvantage is that the assistant manager could steal cash by simply recording less sales than the cash received and then pocketing the excess cash. You decide to reject her suggestion without the manager’s approval and to confront her on the ethics of her suggestion. Propose and evaluate two other courses of action you might consider, and explain why.Assume that you are a cashier and your manager requires that you immediately enter each sale when it occurs. Recently, lunch hour traffic has increased and the assistant manager asks you to avoid delays by taking customers’ cash and making change without entering sales. The assistant manager says she will add up cash and enter sales after lunch. She says that, in this way, customers will be happy and the register record will always match the cash amount when the manager arrives at three o’clock. The advantages to the process proposed by the assistant manager include improved customer service, fewer delays, and less work for you. The disadvantage is that the assistant manager could steal cash by simply recording less sales than the cash received and then pocketing the excess cash. You decide to reject her suggestion without the manager’s approval and to confront her on the ethics of her suggestion. Required Propose and evaluate two other courses of action you might consider, and explain…Explain two methods that an organization could use to monitor its balances of : Cash Accounts receivable Inventory Explain two ways that an organization could reduce its balance of: Cash Accounts receivable Inventory
- Cash Over and Short At the end of each day, Spangle counts the cash in its cash registers. Spangle then compares the physical amount of cash to the amount of cash that the register tape indicates should be in the cash drawer. On a recent day, Spangle Company obtained the following data from its cash registers: Cash Sales per Register Tape Cash in Register After Removing Opening Change Register 1 $14,759.62 $14,757.98 Register 2 15,101.59 15,104.06 Register 3 14,802.18 14,798.87 Spangle deposits its cash receipts in its bank account daily. Required: Prepare a journal entry to record these cash sales. For those boxes in which no entry is required, leave the box blank. Round your answers to two decimal places, if necessary.Assume that you are a cashier and your manager requires that you, as cashier, immediately enter each sale when it occurs. Recently, lunch hour traffic has increased and the assistant manager asks you to avoid delays by taking customers’ cash and making change without entering sales. The assistant manager says she will add up cash and enter sales after lunch. She says that, in this way, the customers will be happy and the register record will always match the cash amount when the manager arrives at three o’clock. The advantage of the process proposed by the assistant manager includes improved customer service, fewer delays, and less work for you. The disadvantage is that the assistant manager could steal cash by simply recording less sales than the cash received and pocketing the excess cash. You decide to reject her suggestion without the manger's approval and to confront her on the ethics of her suggestion. Required: Propose and evaluate two other courses of action you might…As a company accounts payable manager, which of the following credit terms are most likely to entice you to take the cash discount? A. 2/10 net 90 B. 1/10 net 45 C. 2/10 net 60 D. 1/10 net 30
