Accounts Receivable Essay Examples

Nevertheless, both ratios are on a relatively low level. In addition, below are some other ratios on the company that I might refer to later: [pic] 2) As in the table above, the collection days for Accounts Receivable are rather long. With increasing sales figures, as displayed in the previous years by the Butler Lumber […]

What assumptions did Mr. Fischer make when he prepared the forecasts? Were these assumptions reasonable? Mr.Fischer made assumptions for both the income statement and the balance sheet. Income statement. We calculate the percentage of variation from one month to another in terms of sales and gross profit. When Mr.Fischer prepared the forecast of his income […]

Analyze the changes that Al Dunlap had initiated at Sunbeam after being hired from a strategic perspective. Did the changes started by Dunlap allow him opportunities to manage earnings? First, after Al Dunlap was hired, Dunlap wanted to surround himself with loyal executives, such as Mr. Kersh, and fired the existing senior managers. This strategy […]

To create the pro forma operating statement we used ratios of COGS/Sales and Operating Expense/Sales for years 2004, 2005, and 2006. We then took the average of these ratios and multiplied them by sales for 2007 to come up with 2007 COGS and Operating Expenses. To calculate interest expense we included the outstanding loan Jones […]

Go With the Flow, Incorporated (“Company”) designs, manufactures, and sells a broad range of mobile network products and systems and communication devices, including mobile, cordless and corded telephones. The Company’s primary sources of liquidity are internally generated cash flows, the Company’s debt and revolving credit facilities, and the sale of trade accounts receivables. The Company’s […]

First step in preventing overdue accounts is to analyze the potential customer’s credit report before you extend them credit. The reports show historical payment data and a rating that demonstrates how likely they are to pay their bills. While you don’t want to destroy any future or existing business relationships by laying down strict payment […]

Statement of Financial Problem Butler Lumber Company, a growing profitable business has exhausted its credit limit and the key issues facing it are: Need for additional funds to continue the growth Need to consolidate debt Need to improve cash flexibility. In this case study I will be discussing following problem: Why has Butler Lumber been […]

What columnar sheet of paper is used to summarize information needed to prepare the financial statements of the business? General Journals. Trial Balance General Ledgerd. Worksheet Posting is the process of transferring information from what? Ledger to the financial statements. Ledger to the trial balance Journal to the ledgerd. Journal to the trial balance What […]

The purpose of this memo is to communicate the results and findings from our team’s assessment of the Accounts Receivable balances for Key West Company as of 20X1. Our team has already completed a thorough evaluation of the company’s internal control and we believe they are excellent. Therefore, the team has decided to use the […]

Forecasted Working Capital Strategies: If Microsoft foresees a 20% surge in revenue for the next year, multiple sections of the annual report will be influenced by this prediction. The main impact will be seen in the income statements, with projected revenue increasing from $16,195 million to $19,434 million. However, it’s not just the revenue that […]

FINANCIAL MANAGEMENT BUSINESS CASE President: “The Accounts Receivable shown on the Statement of Financial Position as of December 31, 2010 are nearly P100 million and the funny thing is, we just collected a bunch of the big accounts in early December but had to reinvest most of that money in new equipment. At one point […]