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- You have received $1,000,000 from an insurance policy that matured. You would like to invest some of that money in either Sagicor investments or Accesss limited- two companies that you believe are doing well financially. You decided to analyze the financial statements of the companies to help you decide which one is performing better. You discovered the following Sagicor AccessCurrent ratio 3:1 2:3:1Quick ratio 1:5:1 1:1:2Debtor collection 35 days 30 daysPeriod Creditors payment 40 days 25 daysPeriod Inventory turnover 8 times 9 timesNet income 15% 11% percentage Use the information to calculate each and Show working.Determine whether the following business objectives are FINANCIAL or NONFINANCIAL 1. To have a 5% increase in the number of bank clients acquiring a credit card 2. To have 30% of the viewers as subscribers to the entity’s YouTube channel 3. To have all regular tax associates attend at least 15 CPD units sponsored by the accounting firm during the current year. 4. To have lower write-offs by 20% compared to the previous year. 5. To have a times interest earned of 8.. PQR is the accounting intern for, a firm that has many small clients that need monthly accounting services. Ray has been asked by the partner in charge to analyze the asset section of firm’s balance sheets which follow: 2011 2012 Cash $2,500 $3,900 Accounts receivable, net 35,000 40,000 Inventory 85,000 122,000 Other current assets 3,400 4,110 Total current assets 125,900 170,010 Property , plan &equipment , net 180,000 230,000 Other assets 15,000 26,000 Total assets $320,900 $426,010 Required Prepare a common-size analysis of the assets section of the firm’s balance sheet for 2011 and 2012.Round all percentage answers to one decimal place
- Nicole has decided that she is going to start her business, Nicole’s Getaway Spa (NGS). A lot hasto be done when starting a new business. Here are some transactions that have occurred prior toApril 30.a. Received $80,000 cash when issuing 8,000 new common shares.b. Purchased land by paying $2,000 cash and signing a note payable for $7,000 due in threeyears.c. Hired a new aesthetician for a salary of $1,000 a month, starting next month.d. NGS purchased a company car for $18,000 cash (list price of $21,000) to assist in runningerrands for the business.e. Bought and received $1,000 in supplies for the spa on credit.f. Paid $350 of the amount owed in ( e ).g. Nicole sold 100 of her own personal shares to Raea Gooding for $300.Required:1. For each of the events, prepare journal entries if a transaction exists, checking that debitsequal credits. If a transaction does not exist, explain why there is no transaction.2. Assuming that the beginning balances in each of the accounts are zero,…You have received $1,000,000 from an insurance policy that matured. You would like to invest some of that money in either Sagicor investments or Accesss limited- two companies that you believe are doing well financially. You decided to analyze the financial statements of the companies to help you decide which one is performing better. You discovered the following Sagicor Access Current ratio 3:1 2:3:1 Quick ratio 1:5:1 1:1:2 Debtor collection period 35 days 30 days Creditors payment period 40 days 25 days Inventory turnover 8 times 9 times Net income percentage 15% 11% Prepare a report comparing the performance of the companies and determine which one is better to invest.I need help with my discussion There will be two discussion questions listed below. By due date assigned, respond to one of the discussion questions and submit your response to the Discussion Area below, using the lessons and vocabulary found in the reading. Support your answers with examples and research and cite your sources using the APA format. Discussion Question One: ACME Company sells computer components and plans on borrowing some money to expand. After reading a lot about earnings management, Bill, the owner of ACME, has decided he should try to accelerate some sales to improve his financial statement ratios. He has called his best customers and asked them to make their usual January purchases by December 31. Bill told the customers he would allow them, until the end of February, to pay for the purchases, just as if they had made their purchases in January. Explain if you think there are ethical implications of Bill’s actions. Which ratios will be affected, and how, by…
- Using the accounting equation to analyze transactions Tiny Town Kennel earns service revenue by caring for the pets of customers. Tiny Town Kennel is organized as a corporation. During the past month, Tiny Town Kennel has the following transactions: Received $520 cash for service revenue earned. Paid $325 cash for salaries expense. Investors contributed $1,000 to the corporation in exchange for common stock. Earned $640 for service revenue, but the customer has not paid Tiny Town Kennel yet. Received utility bill of $85, which will be paid next month. Cash dividends of $100 were paid to stockholders. Indicate the effects of the business transactions on the accounting equation for Tiny Town Kennel. Transaction (a) is answered as a guide. (a). Increase asset (Cash); Increase equity (Service Revenue)You are working as an accountant for a local business. The CEO says that business is going great this year in spite of the covid pandemic. The CEO states that business is so great that they can forgo including an allowance account for their accounts receivables on the company balance sheet. The CEO states that with no allowance account, the company net income will increase which means more in year-end bonuses! You on the other hand believe from all the accounting classes you have completed believe that an allowance account is mandatory when a company has accounts receivables. Please draft an accounting issues memo and an email to the CEO answering the following: 1. Use the FASB codification to determine whether GAAP requires an allowance account for accounts receivable. Please use specific Codification references to support your answer. 2. Please draft example journal entries and show how this is done if required. Also show how the accounts receivable would be shown in the…Suppose you are the only owner of a chain of coffee shops near universities. Your current cafés are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 • Your existing business generates $111,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $21,143. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $16,650 of additional cash. • You also need to purchase $8,880 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages payable, will increase by $5,550. Based on your evaluation you have…
- Bob Jacobs wishes to expand his business and has borrowed $100,000. As a condition for making this loan, the bank requires that the business maintain a current ratio of at least 1.50. Business has been good but not great. The expansion costs have brought the current ratio down to 1.20 in the middle of December. Bob, as the owner of the business, is considering what might happen if he reports a current ratio of 1.4 to the bank. One possible action for Bob is to record in December $10,000 of revenue that the business will earn in January of next year. He thinks this is doable because the contract for this job has been signed. Journalize the revenue transaction and indicate how recording this revenue in December would affect the current ratio. Discuss whether it is ethical to record the revenue transaction in December. Identify the accounting principle relevant to this situation. and give the reasons underlying your conclusion. Propose an ethical action for Bob Jacobs.Suppose you are the only owner of a chain of coffee shops near universities. Your current cafés are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 • Your existing business generates $123,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $23,429. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $18,450 of additional cash. • You also need to purchase $9,840 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. • It is also estimated that your accruals, including taxes and wages…PQR is the accounting intern for, a firm that has many small clients that need monthly accounting services. Ray has been asked by the partner in charge to analyze the asset section of firms’s balance sheets which follow: 2011 2012 Cash $2,500 $3,900 Accounts receivable, net 35,000 40,000 Inventory 85,000 122,000 Other current assets 3,400 4,110 Total current assets 125,900 170,010 Property, plant & equipment, net 180,000 230,000 Other assets 15,000 26,000 Total assets $320,900 $426,010 Required Prepare a common-size analysis of the assets section of the firms balance sheet for 2011 and 2012.Round all percentage answers to one decimal place