What is financial objectives

An analysis and aging of the accounts receivable of Hugh Company at December 31 revealed the following data: Accounts Receivable

Hitman42 [59]

Answer:

$844,000

Explanation:

Given that,

Accounts Receivable = $900,000

Credit balance of Allowance for Doubtful Accounts per books before adjustment = $50,000

Expected amount of uncollectible = $56,000

Bad debt expense at the end of the period is determined by subtracting the credit balance of allowance for doubtful accounts from the expected amount of uncollectible.

Bad debt expense:

= Expected amount of uncollectible - Credit balance

= $56,000 - $50,000

= $6,000

At the end of the period, the allowance for doubtful accounts has a balance of $56,000 that are to be uncollectible.

The cash realizable value of the accounts receivable at December 31, after adjustment, is determined by simply subtracting the Allowance for doubtful accounts from the accounts receivable. It is calculated as follows:

= Accounts Receivable - Allowance for doubtful accounts

= $900,000 - $56,000

= $844,000

4 0

3 years ago

The following information was used in reconciling the bank account for Minerva Company on October 31: Balance per bank, October

Strike441 [17]

Answer: A $37.280.

Explanation:

Adjusted book balance will include those transactions made or charged by the bank for/to the company so will include;

= Balance per books - Insufficient funds check - Utility bill paid by bank - Check printing charge

= 40,000 - 1,400 - 1,240 - 80

= $37,280

3 0

3 years ago

This year Erie achieved an ROE of 23.9%. Suppose the Board of Directors of Erie mandates that management take measures to increa

allochka39001 [22]

Answer:

c. Erie s ROE will remain the same

Explanation:

As the return on asset is calcualte using the asset figure it will not change with a financial leverage measurement.

As the financial leverage acts in the composition of other side of the accounting (assets = liabilitis + equity) it will change the return on equity, the debt ratio and other metric related to this side but, not the return on assets.

8 0

4 years ago

From the information given below construct a cash budget for five months period starting form May 20X1 till September. MONTH AND

Alenkinab [10]

Answer:

Cash Surplus May $83,300 June $ 61,600 July $33,000

Aug $25,500 Sept $ 3650

Explanation:

MONTH AND YEAR PROJECTED SALES FIRST MONTH

COLLECTIONS (80%)

April 20X1 $ 140,000 112,000

May 20X1 130,000 104,000

June 20X1 90,000 72,000

July 20X1 65,000 52,000

August 20X1 84,000 67,200

September 20X1 95,000 76,000

October 20X1 160,000 128,000

November 20X1 200,000 160,000

December 20X1 240,000 192,000

January 20X2 190,000 152,000

First we find the monthly cash collections 80 % in the month of sales , 10% in the second month , 5% in the third and 5 % in the fourth . We have summed them up in the following table.

Sales Collections

MAY JUNE JULY AUGUST SEPT

Particulars

1st Month 104,000 72,000 52,000 67,000 76,000

Collections

2nd Month 14,000 13,000 9000 6500 8400

3rd Month 7000 6500 4500 3250

4th Month 7000 6500 4500

Total

Collections 118,000 92,000 74,500 84,500 92,150

Now we prepare the cash budget deducting payments from collections and maintaining beginning and ending balance.

Cash Budget

MAY JUNE JULY AUGUST SEPT

Particulars

Opening 10,000 10,000 10,000 10,000 10,000

Add Total

Collections 118,000 92,000 74,500 84,500 92,150

Less Closing 10,000 10,000 10,000 10,000 10,000

Less Payments34,700 30,400 41,500 59,000 88,500

 Cash Surplus 83,300 61,600 33,000 25,500 3650

4 0

3 years ago

Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishi

skad [1K]

Answer:

a. The cost of inventorying a single item is $1.00 per item.

b. The cost of inventorying a single item is $0.86 per item.

c. The cost of inventorying a single item is $0.95 per item.

d. The cost of inventorying a single item is $1.08 per item.

e. You should assign two workers per computer in order to minimize the cost of inventory per single item.

Explanation:

Note: This question is not complete. A complete question is therefore provided before answering the question as follows:

Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishing returns to taking inventory. If one worker uses one computer, he can inventory 125 items per hour. Two workers sharing a computer can together inventory 175 items per hour. Three workers sharing a computer can together inventory 185 items per hour. And four or more workers sharing a computer can together inventory fewer than 185 items per hour. Computers cost $100 each and you must pay each worker $25 per hour.

a. If you assign one worker per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

b. If you assign two workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

c. If you assign three workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item

d. If you assign four workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item.

e. How many workers per computer should you assign if you wish to minimize the cost of inventory per single item? _____ worker(s) per computer

The explanation to the answer is now provided as follows:

Note: See the attached excel file for all the calculations.

a. If you assign one worker per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

The cost of inventorying a single item is $1.00 per item.

b. If you assign two workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $ _____ per item

The cost of inventorying a single item is $0.86 per item.

c. If you assign three workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item

The cost of inventorying a single item is $0.95 per item.

d. If you assign four workers per computer, what is the cost of inventorying a single item? Instructions: Round your answer to two decimal places. $_____ per item.

The cost of inventorying a single item is $1.08 per item.

e. How many workers per computer should you assign if you wish to minimize the cost of inventory per single item? _____ worker(s) per computer

To minimize the cost of inventory per single item, you should assign the number of workers at a point where the cost inventorying a single item is the lowest.

From from parts a to d above, the lowest cost of $0.86 per item of inventorying a single item is obtained in part b when you assign two workers per computer.

Therefore, you should assign two workers per computer in order to minimize the cost of inventory per single item.

Download xlsx

6 0

3 years ago

What is financial objectives​

What is financial objectives