Used the budget to control performance and expenditure. I would measure budget performance, you need to monitor the extent to which budget estimates match actual results. This helps ensure financial control and identify where change is required. Monitoring budget accuracy is the responsibility of all managers. Effective monitoring of budget performance requires that managers be provided with relevant, timely and accurate information appropriate to their level of responsibility.
The business required £30,000 cash for working capital. The company gets a loan of £450,000 which was transfer into the business bank account in January as shown in appendix 6. The cash budget shows a balance of £3,918 in January and £16,335 February. The loan calculation is shown in appendix 8. This is expected to be paid back within 8 years by monthly paid instalments of £5.718.41 which was calculated on a 5.1% interest rate.
Williams exercised his option on September 1, 2010, and sold his 100 shares on December 1, 2010. Quoted market prices of Trent Co. stock during 2010 were as follows: January 1 $30 per share September 1 $36 per share December 1 $40 per share The service period is for 2 years,
All sales are made on account at $20 per unit. Sixty percent of the sales are collected in the month of sale; the remaining 40% are collected in the following month. Forecasted sales for the first five months of 20X2 are: January, 1,500 units,- February, 1,600 units; March, 1,800 units; April, 2,000 units; May, 2,100 units. 2. Management wants to maintain the finished goods inventory at 30% of the following month's sales.
This reduces the carrying costs of the inventory that is ordered as well as insuring that unused items are not held from month to month. A third way to increase working capital is to realign the billing and payment schedules for the company. Currently products are invoiced to customers at the end of the month with terms of net30. Suppliers invoice the company at the end of the month with terms of net15. This disparity of terms can impact working capital as money flows out in the middle of the month but does not flow in until the end of the month.
Terminal value at the end of year 8 is the value at that time of the after-tax net cash flows that the project is expected to provide after that date. (b) [2] What is the net present value of the project if it will require an initial outlay of $10,000? 3. [10] It is January 2010. Mr. Norton owns and operates a small-appliance repair shop.
Name two tools used to plan, schedule and monitor the activities during a systems implementation project. 12. The objective in designing any internal control system is to provide foolproof protection against all internal control risks. 13. A good _________ enables an accounting manager as well as auditors to follow the path of the data recorded in transactions form the initial source.
The result of these equations is $91,791.64 that represents the present value. For the future value, the interest was calculated to the inventory is an interest for the next three years of 5%. According with the factor table was multiply the present value by the factor. The equation is $91,791.64 multiply by (.85384) with the result of future value of $78,375.40 in the year of 2015. The inventory decrease represents a future value of $13,416.27.
(TCO B) Cite two ways that the accounting function can contribute to the achievement of quality. 6. (TCO C) Compare and contrast the quality philosophies of Deming and Juran. • Page 2 1. (TCO G) Discuss the concept of best practices and their effect on quality management success.
Cost=600,000*0.2=$120,000 (c) In-housing testing? Cost=600,000*0.4=240,000 What weaknesses are inherent in this estimating approach? This is the classic top-down estimate with apportion methods. For apportion methods, since good historical data about past projects concerning cost is needed to make a proper apportion method, the potential weakness may lies in that good data and experience about past projects are not available or the current data we base our estimate on is not accurate or correct. In that case, the percent we assign to each task under the project, such as 20% for programming cost, may be not reasonable or accurate.