GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
17th Edition
ISBN: 9781260218831
Author: Libby
Publisher: MCG CUSTOM
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Chapter 12, Problem 12.5CP
To determine
Write A memo for evaluating the problems faced by Incorporation C and to emphasize its sources of financing that may or may not be available to support the expansion.
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Observe the following statement:
STATEMENT OF CASH FLOW FOR "COUCH POTATO TECHNOLOGIES P/L"
For the year ending June 30 2011
2010 2011
$000 $000
Receipts from customers (sales)
Payments for purchases
Payments to employees
Purchase of assets
350
180
50
60
80
80
10
20
Payments for operating expenses
10
15
Additional Information:
Industry Average Efficiency : 20%
Net profit in 2010 : $21 000
a) Define the term working capital.
b) Comment on the cash flow of Couch Potato Technologies P/L in 2010.
c) Calculate and comment on the efficiency of Couch Potato Technologies P/L
d) Calculate and comment on the net profit of Couch Potato Technologies P/L.
e) Recommend TWO strategies that can be used to manage the working capital of
Couch Potato Technologies P/L.
ABC Turbine Corporation produces and sells turbine generators for such applications as charging electric, hybrid vehicles. ABC Turbine report following financial data for a recent year (in thousands ) Net cash flows from operating activities xi(1, 680) Cash and cash equivalents 4,060
a. Determine the monthly cash expenses thousands
b. Determine the ratio of cash to monthly cash expenses months
. Based on your analysis, do you believe that ABC Turbine will remain in business?
Observe the following statement:
STATEMENT OF CASH FLOW FOR “COUCH POTATO TECHNOLOGIES P/L”
For the year ending June 30 2011
2010
$000
2011
$000
Receipts from customers (sales)
350
180
Payments for purchases
50
60
Payments to employees
80
80
Purchase of assets
10
20
Payments for operating expenses
10
15
Additional Information:
• Industry Average Efficiency : 20%
• Net profit in 2010 : $21 000
a) Define the term working capital.
b) Comment on the cash flow of Couch Potato Technologies P/L in 2010.
c) Calculate and comment on the efficiency of Couch Potato Technologies P/L
d) Calculate and comment on the net profit of Couch Potato Technologies P/L.
e) Recommend TWO strategies that can be used to manage the working capital of Couch Potato Technologies P/L.
Chapter 12 Solutions
GB 112/212 MANAGERIAL ACC. W/ACCESS >C<
Ch. 12 - Prob. 1QCh. 12 - Prob. 2QCh. 12 - Prob. 3QCh. 12 - What are the major categories of business...Ch. 12 - Prob. 5QCh. 12 - Prob. 6QCh. 12 - Prob. 7QCh. 12 - Prob. 8QCh. 12 - Compare the two methods of reporting cash flows...Ch. 12 - Prob. 10Q
Ch. 12 - Prob. 11QCh. 12 - What are noncash investing and financing...Ch. 12 - Prob. 13QCh. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 6MCQCh. 12 - Prob. 7MCQCh. 12 - Prob. 8MCQCh. 12 - Prob. 9MCQCh. 12 - Prob. 10MCQCh. 12 - Prob. 12.1MECh. 12 - Determining the Effects of Account Changes on Cash...Ch. 12 - Prob. 12.3MECh. 12 - Prob. 12.4MECh. 12 - Prob. 12.5MECh. 12 - Prob. 12.6MECh. 12 - Prob. 12.7MECh. 12 - Prob. 12.1ECh. 12 - Prob. 12.2ECh. 12 - Prob. 12.3ECh. 12 - Prob. 12.4ECh. 12 - Prob. 12.5ECh. 12 - Prob. 12.6ECh. 12 - Prob. 12.7ECh. 12 - Reporting and Interpreting Cash Flows from...Ch. 12 - Prob. 12.9ECh. 12 - Prob. 12.10ECh. 12 - Prob. 12.11ECh. 12 - Inferring Balance Sheet Changes from the Cash Flow...Ch. 12 - (Chapter Supplement B) Computing and Reporting...Ch. 12 - During the period, Sanchez Company sold some...Ch. 12 - Prob. 12.15ECh. 12 - Prob. 12.16ECh. 12 - Prob. 12.17ECh. 12 - Prob. 12.18ECh. 12 - Prob. 12.19ECh. 12 - Prob. 12.20ECh. 12 - Prob. 12.21ECh. 12 - (Chapter Supplement A) Reporting and Interpreting...Ch. 12 - Prob. 12.23ECh. 12 - Prob. 12.24ECh. 12 - Prob. 12.1PCh. 12 - Prob. 12.2PCh. 12 - Prob. 12.3PCh. 12 - Prob. 12.4PCh. 12 - Prob. 12.5PCh. 12 - (Chapter Supplement C) Preparing a Statement of...Ch. 12 - Prob. 12.1APCh. 12 - Prob. 12.2APCh. 12 - Prob. 12.3APCh. 12 - Prob. 12.1CONCh. 12 - Prob. 12.1CPCh. 12 - Prob. 12.2CPCh. 12 - Prob. 12.3CPCh. 12 - Prob. 12.4CPCh. 12 - Prob. 12.5CPCh. 12 - Prob. 12.6CP
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