What is the net credit sales?
Q: What is the difference between account receivable and account payable ?
A: Diffecrence between the accounts receivable an accounts payable are as follows:
Q: Explain the characteristics of credit products.
A: When the banks or any financial institutes commitments or guarantees on the behalf of the customers…
Q: What is easy-access credit?
A: Introduction: The ability to borrow cash or obtain goods or services with expectation of repaying it…
Q: What is Dollar-Value LIFO Retail Method ?
A: LIFO: In Last-in-First-Out method, items purchased recently are sold first. So, the value of the…
Q: Define credit terms
A: Credit refers to the amount of money which is lend to the borrower for certain period of time.
Q: What is the difference between a sales discount and a purchases discount?
A: The term sales discount is used by the seller, and the term purchase discount is used by the…
Q: What does the days’ sales in receivables indicate, and how is it calculated?
A: Day's Sales: Day's sales refer to the average number of days for which a receivable remain…
Q: What's the difference between accounts payable and receivable?
A: Accounts Payable is the current liability for the business and Accounts Receivable is a current…
Q: What is a sale on credit and why it is needed? Give three examples?
A: Sale on Credit: A sale on credit is revenue earned by a company when it sells goods and allows the…
Q: What type of accounts are Sales Returns and Allowances and Sales Discounts?
A: Sales return and allowance accounts refers to the good returned to the business that were sold. This…
Q: What is the difference between your credit report and your credit score? What is a good credit…
A: Introduction to Credit report A credit report is prepared by a credit bureau and is a breakdown of a…
Q: Explain how to calculate accounts receivable turnover ratio.
A: Accounts receivable turnover: Accounts receivable turnover is a liquidity measure of accounts…
Q: What is a line of credit? A revolving credit agreement?
A: If a lender offers a revolving loan account, a particular credit cap is allocated to the lender.…
Q: Define Receivable Management and Credit Policies
A: Receivable Management : managing the outstanding Credit Policies : Selling on credit to parties…
Q: receivables turnover ratio
A: Receivable turnover ratio is an important accounting metric used to evaluate the performance of…
Q: What are receivables credits? Please explain.
A: Receivable refers to the assets of the company created due to sale of goods and service on credit to…
Q: how do you get sales revenue?
A: Required How do you get sales revenue?
Q: what are the strategies to improve credit
A: Credit is referred as an agreement, which are between the borrower and the lender. It might decrease…
Q: why are accounts receivables inevitable? what advantage do selling on account offer?
A: The amount of money owing to a corporation by customers for goods or services previously provided is…
Q: What is meant by a line of credit?
A: Credit refers to the concept is being defined as the financial agreement where the borrowers receive…
Q: What do you understand from trade and cash discount? How to calculate trade discount, cash discount…
A: SOLUTION- To increase sales revenue and attract more buyers, every company offers trade and cash…
Q: Define the term Accounts Receivable Turnover?
A: Accounts receivable turnover: This is the ratio which analyzes the number of times accounts…
Q: what are the principal types of credit scoring models.
A: Credit score is referred as a number range from 300 to 850 which determines the creditworthiness of…
Q: What are the five Cs of credit? How do these serve as a yardstick for creditevaluation?
A: The “5 Cs of credit” is a system used to estimate the creditworthiness of the borrowers. The 5 Cs…
Q: How credit ratings companies evaluate and determine credit for consumers?
A: Credit rating is referred as the opinion derived from the credit agency which determines the ability…
Q: What is line of credit?
A: Introduction: Usually, the word loan refers to a form of credit facility where a certain amount of…
Q: What is the difference between gross selling price and invoice price?
A: Invoices are the bill which display the total value of the product purchased. Be it gross selling…
Q: What are the four credit policy variables?
A: Credit policy is formed to manage the account receivables. It directly effects the working capital…
Q: Identify the relationship between money, credit?
A: Money is considered as the financial medium exchanged between parties that enable the transaction.…
Q: What are the credit transfer markets?
A: Financial market is called as a place where all securities such as bonds, shares, debentures etc.…
Q: How to compute the account receivable Turnover without the net credit sales nor the average account…
A: Ratio analysis means where different ratio of various years of years companies has been compared and…
Q: Define each of the following terms:i. Credit policy; credit period; credit standards; collection…
A: CREDIT POLICY- ''Guidelines that spell out a way to decide which customers area unit sold-out on…
Q: What is a credit limit? How does it impact credit utilization (debit-credit ratio) and why is that…
A: Credit Limit :- Credit limit is an limit of spending on an Customer or its the maximum credit can a…
Q: What is the process of Borrowing with Credit Cards?
A: The credit card is a vital instrument to upsurge the buying power. The credit card facility aids to…
Q: How to calculate net sales revenue and net purchases
A: The income statement is one of the financial statements of the business which is prepared to know…
Q: 1) What would be the gross profit margin and net profit margin? 2) what is the relevance of…
A: The gross profit margin estimates the financial stability of the company.it is the balance left…
Q: What does an increasing collection period for accounts receivable suggest about a firm's credit…
A: The credit policy of a firm means the policies and conditions attached to lending goods and services…
Q: What is the average amount of receivables?
A: P81,875 is the average amount of receivables.
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- Assets Current assets: Cash Marketable securities Accounts receivable (net) Inventories Other Total current assets Property and equipment: Land Building and equipment (net) Total long-term assets Total assets 1. Calculate the average total assets. 20X1 20X2 $2,875,000 $2,580,000 800,000 700,000 939,776 690,000 490,000 260,000 93,000 74,261 $5,197,776 $4,304,261 $1,575,000 $1,067,315 1,348,800 1,150,000 $2,923,800 $2,217,315 $8,121,576 $6,521,576Assets Current assets Cash and cash equivalents Accounts receivable, net Supplies Other current assets Total current assets Property and equipment Accumulated depreciation Net property and equipment Goodwill Deferred charges Other Total assets Liabilities and equity Current liabilities Accounts payable Accrued liabilities Current maturities of long-term debt Total current liabilities Operating lease liabilities non-current Long-term debt Other non-current liabilities Total liabilities Total liabilities Common stock Cummulative dividends Retained earnings Other Total equity Total liabilities and equities Revenue, net Operating charges Salaries, wages, and benefits Other operating expenses Supplies expense Depreciation and amortization Lease and rental expense Total operating charges Income from operations Interest expense, net Other (income) expense, net Income before income taxes Provision for income taxes Net income $61,268 1,560,847 Cost of debt (%) Cost of equity (%) Weighted…Current assets: Cash Short-term investments Accounts receivable Inventories Other current assets Total current assets Long-term investments Property, plant, and equipment, net Other noncurrent assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable Accrued expenses Unearned revenue Short-term debt Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities Stockholders' equity: Common stock ($0.00001 par value) Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and shareholders' equity $ 48,844 51,713 22,926 4,106 35,230 162,819 105,341 37,378 32,978 $ 338,516 $ 46,236 43,700 5,522 10,260 105,718 91,807 50,503 248,028 1 45,173 45,314 90,488 $ 338,516
- What adjustment(s) should be made to reconcile net income to net cash flows from operating activities (indirect method) considering the following balances in current assets?Assets Cash S.T. Investments Accts Receivable Inventories Total Current Assets Net PP&E Total Assets Liabilities. Accts Payable Notes Payable Accruals Balance Sheet Current Liabilities L.T. Bonds Preferred Stock Common Stock Retained Earnings Total Equity Total Liab. & Equity Less: Interest 2021 120 30 400 Pre-tax Earnings 1,200 1,750 3,000 4,750 100 100 300 500 520 200 530 3,000 3,530 4,750 Net Sales COGS except Dep Depreciation & Amortization Other Operating Expenses EBIT Income Statements 2021 5,500 3,800 180 600 920 60 860 215 Taxes (25%) Preferred Dividends 15 Net Income for CS Holders 630 2020 $102 40 384 774 1. What is the company's MVA? 2. What is the company's EVA in? 3. What is the current ratio of the Company? 1,300 1,780 3,080 180 28 370 578 350 100 500 1,552 2,052 3,080 Number of Common Stock Outstanding = 1,200 Price of Common Stock = 4.00 WACC Cost of Capital = 12.0% Return on Investment (ROI)= 15.97% 2020 4,800 3,710 180 470 440 40 400 100 7 293ASSETS Cash Accounts receivable, net Inventories Prepaid and other current assets Total current assets Restricted cash Accounts receivable, net, non-current Property, plant and equipment, net Operating lease right-of-use assets Other assets Total assets LIABILITIES AND EQUITY (DEFICIT) Accounts payable Accrued liabilities Deferred revenue Current portion of long-term debt Other current liabilities Total current liabilities. Long-term debt, net of current portion Operating lease liabilities, net of current portion Other long-term liabilities. Total liabilities Equity (Deficit) Class A common stock, par value $0.0001 and 124,785,562 shares issued and outstanding at December 31, 2022 and 119,280,781 shares issued and outstanding at December 31, 2021 Class B common stock, par value $0.0001 and 268,823,501 shares issued and outstanding at December 31, 2022 and 269,243,501 shares issued and outstanding at December 31, 2021 Additional paid-in-capital Accumulated other comprehensive income…
- Comparative Balance Sheet Assets: Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total current assets Property, plant, and equipment Less accumulated depreciation Net property, plant, and equipment Total assets Liabilities and stockholders' equity: Current liabilities: Accounts payable Accrued liabilities Income taxes payable. Total current liabilities. Bonds payable Total liabilities Stockholders' equity: Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Ending Balance $ 31,000 18,000 58,000 12,000 119,000 374,000 190,000 184,000 $ 303,000 $ 13,000 52,000 67,000 132,000 76,000 208,000 Beginning Balance $ 28,000 20,000 56,000 10,000 114,000 354,000 165,000 189,000 $ 303,000 $ 9,000 53,000 69,000 131,000 73,000 204,000 28,000 26,000 67,000 73,000 95,000 99,000 $ 303,000 $ 303,000 The company's net income (loss) for the year was ($3,000) and its cash dividends were $3,000. It did not sell or…Balance Sheets Metropolitan Republic Assets Cash Accounts receivable (net) Short-term investments Inventory Prepaid expenses and other current assets Current assets 263.3 42.4 495.7 394.0 7.8 703.2 558.7 542.4 196.6 Property, plant, and equipment (net) Intangibles and other assets $ 1,498.0 2,686.2 283.3 $ 1,706.2 2,529.3 569.3 $ 4,467.5 $ 4,804.7 Total assets Liabilities and Shareholders' Equity Accounts payable 551.9 294.1 661.2 765.2 623.4 Short-term notes 608.5 Accruals and other current liabilities $ 1,997.1 $ 1,507.2 623.6 Current liabilities 623.3 Long-term debt Deferred tax liability Other long-term liabilities 452.6 684.7 193.0 178.1 Total liabilities $ 2,776.4 $3,483.2 418.0 Common stock (par and additional paid-in capital) Retained earnings Less: Treasury stock 212.9 2,546.9 (1,068.7) $ 4,467.5 1,680.9 (777.4) $ 4,804.7 Total liabilities and shareholders' equity Income Statements $ 5,772.0 (2,837.0) $ 2,935.0 (1,662.7) (68.8) $ 1,203.5 (311.7) 891.8 $ 7,839.2 (4,408.7) $…Assets Current Assets Cash Accounts receivable Inventories Other current assets Total current assets Long-Term Assets Land Buildings Equipment Less accumulated depreciation Net property, plant, and equipment Goodwill Other long-term assets Total long-term assets Total Assets Liabilities and 2006 2005 Stockholders' Equity OA. 1.71 OB. 2.28 OC. 0.57 OD. 1.14 Current Liabilities 57.4 58.5 Accounts payable Notes payable / 39.6 short-term debt 56 44.8 5.9 164.1 42.9 3.0 Other current liabilities 144.0 65.6 62.1 108.5 91.5 117.3 99.6 Current maturities of long-term debt (56.2) (52.5) 235.2 200.7 60.0 63.0 358.2 Total current liabilities Long-Term Liabilities Long-term debt Capital lease obligations Deferred taxes Other long-term liabilities Total long-term liabilities Total liabilities and 522.3 386.7 Stockholders' Equity Refer to the balance sheet above. Luther's current ratio for 2006 is closest to 42.0 Total liabilities 242.7 Stockholders' Equity 2006 87.2 10.7 39.9 6.0 143.8 230.2 22.8…
- On a classified statement of financial position, current assets are customarily listed? a. in the reverse order of liquidity b. in alphabetical order Oc. in the order of acquisition d. with the largest dollar amounts firstDec. 31, 2020 Dec. 31, 2019 Assets Current assets: Cash and cash equivalents $248,005 $419,465 Accounts receivable 38,283 34,839 Inventory 15.043 15,332 Prepaid expenses and other current assets 39,965 34,795 Income tax receivable 58,152 16,488 Investments 415,199 338,592 Total current assets 814.647 859,511 Property, plant, & equipment, net 1,217.220 1,106,984 Long-term investments 622,939 496.106 Other assets 70,260 64,716 Total assets $2,725,066 $2,527,317 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $85,709 $69,613 Accrued payroll and benefits 64,958 73,894 Accrued liabilities 129,275 102,203 Total current liabilities 279,942 245,710 Deferred liabilities 284.267 240,975 Other liabilities 32.883 28,263 Total liabilities 597,092 514,948 Shareholders' equity: Common stock 358 354 Additional paid-in capital 954,988 861.843 Retained earnings 1,172.628 1,150,172 Total shareholders' equity 2,127,974 2,012.369 Total liabilities and shareholders' equity…Classifying Items in the Statement of Cash Flows The following items are commonly reported in a statement of cash flows (indirect method presentation). For each item 1 through 20, determine (a) in which section the item is presented (operating, investing, or financing) and (b) whether the associated dollar amount is added or subtracted in the statement. (a) (b) 1. Payments of short-term debt. AnswerOperatingInvestingFinancing AnswerAddSubtract 2. Repurchases of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 3. Purchases of property and equipment. AnswerOperatingInvestingFinancing AnswerAddSubtract 4. Sale of investments classified as long-term. AnswerOperatingInvestingFinancing AnswerAddSubtract 5. Proceeds from the issuance of common stock. AnswerOperatingInvestingFinancing AnswerAddSubtract 6. Increase in prepaid expenses and other current assets. AnswerOperatingInvestingFinancing AnswerAddSubtract 7. Acquisition for cash of a competitor.…
