Why do we need to budget our resistance/income

Real World Financials ABC Corporation reported the following information in its financial statements for three successive quarte

Debora [2.8K]

Answer:

(Q4) Receivables turnover ratio= 1.135

(Q1) Receivables turnover ratio= 1.153

Average collection period for Q1=31 7 days

Average collection period for Q4 = 317 days

Explanation:

The Receivables turnover ratio gives us the efficiency of collections and the Average collection period tells us the number of days in which the receivable is collected.

Three Months Ended (Q1) (Q4) (Q3)

9/30/2017 6/30/2017 3/31/2017

Balance sheets:

Accounts receivable, net $ 21,361 $ 19,880 $ 12,970

Income statements:

Sales revenue $ 24,620 $ 23,400 $ 22,260

Receivables turnover ratio= Net Sales / Average Accounts Receivable

Average Accounts Receivable= Net Receivables for one Quarter + Net Receivables for other Quarter/2

(Q3) Receivables turnover ratio= $ 22,260/ $ 12,970 + $ 19,880/2

(Q3) Receivables turnover ratio= $ 22,260/ 16425

(Q3) Receivables turnover ratio= 1.355

This indicates that average accounts receivable balance is converted into cash 1.355 times during the quarter.

(Q4) Receivables turnover ratio= $ 23,400 /$ 19,880 + $ 21,361 /2

(Q4) Receivables turnover ratio= $ 23,400 /20620.5

(Q4) Receivables turnover ratio= 1.135

This indicates that average accounts receivable balance is converted into cash 1. 135 times during the quarter.

(Q1) Receivables turnover ratio= $ 24,620/$ 21,361 ( assuming net is average)

(Q1) Receivables turnover ratio= 1.153

This indicates that net accounts receivable balance is converted into cash

1. 153 times during the quarter.

Average collection period for Q1 = 365/ Receivables turnover ratio

Average collection period for Q1= 365/1.153= 316.6= 317 days

Average collection period for Q1=31 7 days

Average collection period for Q4 = 365/Receivables turnover ratio

Average collection period for Q4 = 365/1.15= 317.4= 317 days

8 0

2 years ago

The first step in preparing a flexible budget is to ________. identify the fixed and variable cost components prepare the budget

madam [21]

Answer:

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7 0

2 years ago

Management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable compet

Lilit [14]

Answer: Option B

Explanation: An organisation can earn sustainable competitive advantage in the market only if they have some special assets or rights that they can use to attract the customer and maintain their base for a period of time.

Although, globalization has made the world a single market and every entity is now focusing on maximizing their consumer satisfaction by doing researches and setting benchmarks.

Hence as every second entity operating at a global level is doing the given activities therefore none of them can get competitive advantage.

8 0

3 years ago

Read 2 more answers

What type of business sells to the end consumer

Shtirlitz [24]

Answer:

business-to- consumer (B2C)

Explanation:

Commerce is a business model which typically involves the buying and selling of goods or products at a given price.

Generally, commerce comprises of four (4) business models and these are;

1. Business to Business (B2B).

2. Consumer to Consumer (C2C).

3. Business to Government (B2G).

4. Business to Consumer (B2C).

A Business to Consumer (B2C) can be defined as a market which typically involves businesses selling their goods and services directly to the end consumers for their personal use.

Hence, the type of business that sells to the end consumer is known as business-to- consumer (B2C).

Some examples of companies that engage in the Business to Consumer (B2C) business model are; Amazon, Goo-gle, Walmart, Alibaba, Uber, LinkedIn, etc.

4 0

2 years ago

Huprey Co. is the defendant in the following legal claims. For each of following claims, does Huprey (a) Record liability, (b) D

const2013 [10]

Answer:

a) Disclose in the notes

b) no Disclosure

c) Record a liability

Explanation:

There are three scenarios to be considered

1) It is reasonably possible that Huprey will lose a pending lawsuit. The loss cannot be estimable

First, premise is that Huprey Co. is facing a lawsuit and the possibility of a loss is most possible. If Huprey Co is able to recognize the amount of loss, then he would have been able to record a liability but the inability to estimate the loss means, the company can o<u>nly make appropriate disclosure in notes</u>

2)Huprey is being used for damages of $2 million. It is very unlikely (remote) that Huprey will lose the case.

This second premise is also a lawsuit on damages for $2 million, however, it is most reasonably acceptable that Huprey will win the lawsuit. As such there is no loss, that way there will be no disclosure in Huprey Co's books.

3. Huprey can reasonably estimate that a pending lawsuit will result in damages of $1.25 million, it is probable that Huprey will lose the case.

The probability of losing a case means that there will be a loss to be recorded in the books and since the damages are already estimable to be $1.25 million. Huprey Co should record a liability

4 0

2 years ago