At the beginning of the year, Elsie’s basis in the E&G Partnership interest is $60,000. She receives a proportionate non-liquidating distribution from the partnership consisting of $10,000 of cash, unrealized accounts receivable (basis of $0, fair market value $30,000), and…
Pasquale Products Co. has two departments: Mixing and Cooking. At the beginning of the month, Cooking had 4,000 units in process with costs of $8,600 from Mixing, and its own departmental costs of $500 for materials, $1,000 for labor, and…
Having accounts receivable means by definition that there will be bad debts; therefore it makes no sense for an organisation to extend credit. Discuss.
You sat in the CEO chair and studies real world hospital accounts receivable problem with your team, and came up with a process improvement plan to reduce days in accounts receivable and improve cash flow to your hospital. Well great…
Discuss the differences in accounting handling of investments in which the investor purchases between 20-50% of another entity, and when the investor purchases over 50% of an entity. This discussion should include the reasons why the investor might want to…
Selected balances from a company’s financial statements are shown below. Calculate the following: (a) accounts receivable turnover (b) inventory turnover (c) days’ sales uncollected (d) days’ sales in inventory (e) profit margin. (f) return on total assets. Accounts Receivable …………………..…
GAAP rules are intended to promote uniform statements that accurately convey the financial history, health, and prospects of a business, while the tax code is intended to generate revenues for the government but also achieve certain public policy goals. Take…
Les Payne, an anesthesiologist, is experiencing significant cash flow problems, and has a major alimony payment due. His accounts receivable turnover is 4.3. Les needs your professional help to explain to him some options that will improve his accounts receivable…
An account in which the balance is not carried over from one accounting period to the next is called a: A) real account. B) permanent account. C) zero account. D) temporary account.
Tammy Company has a beginning accounts receivable balance of $65,000 and an ending accounts receivable balance of $60,000. Net credit sales are $250,000. Tammy’s accounts receivable turnover rate is: A. 4.000. B. 2.000. C. 3.846. D. 4.167.
