FIN- 515: Managerial Finance Homework 2: Chapter 3 Problems: (3-1) Days Sales Outstanding: Greene Sisters has a DSO of 20 days. The company’s average daily sales are $20,000. What is the level of its accounts receivable? Assume there are 365 days in a year. DSO = Receivables / Ave. sales per day Receivables= DSO * Ave. sales per day = 20 * 20,000 Receivables= $400,000 (3-2) Debt Ratio: Vigo Vacations has an equity multiplier of 2.5.
Kudler’s Fine Foods Finance and Accounting Systems Business Systems BSA/310 Kudler’s Fine Foods Kudler Fine Foods is a spirits, fine wines, and upscale specialty food store offering customer both domestic and imported products. Kudler Fine Foods mission is to use their experienced, helpful, and knowledgeable staff to “shop the world” for the finest products, giving customers the choice of aspiring to purchase the finest epicurean delights. Kudler Fine Foods uses management, operational, and supporting processes to achieve this goal. This paper will focus on Kudler Find Foods finance and accounting business information system, which is part of the supporting processes. Supporting Processes
Mrs. Kudler recognizes the importance of word of mouth promotion, which re-enforces the idea of in store gatherings and cooking classes. Over time, the organization will increase profitability if these events are positive and properly promoted. This is best done when attempting to increase the customer’s value chain. Catering and the Local Growers Both the catering service and direct buying from local growers will potentially increase profit for Kudler Fine Foods. Making good use of real estate (using the in store kitchen for catering cooking) and improving efficiency/lowering cost (agile inventory system) gives the organization a competitive advantage in the gourmet food industry.
The accounting department supervisor independently reconciles the accounts receivable subsidiary ledger to the accounts receivable control account monthly. C. The accounting department supervisor controls the mailing of monthly statements to customers and investigates any differences reported by customers. D. The billing department supervisor matches prenumbered shipping documents with entries in the sales journal. AICPA AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Risk Analysis Bloom's: Application Difficulty: Hard 32. Which of the following internal control activities most likely would assure that all billed sales are correctly posted to the accounts receivable ledger?
Cash Budget November December January February March April May June July Sales $220,000 175,000 $90,000 120,000 135,000 240,00 300,000 270,000 225,000 Collections: Month of Sales (10%) 9,000 12,000 13,500 24,000 30,000 27,000 22,500 First month (60%) 105,000 54,000 72,000 81,000 144,000 180,000 162,000 Second month (30%) 66,000 52,500 27,000 36,000 40,500 72,000 90,000 Total collections 180,000 118,500 112,500 141,000 214,500 279,000 274,500 Purchases 54,000 72,000 81,000 144,000 180,000 162,000 135,000 90,000 Payments 54,000 72,000 81,000 144,000 180,000 162,000 135,000 90,000 Cash receipts 180,000 118,500 112,500 141,000 214,500 279,000 274,500 Cash Disbursements
5/2/13 BSA/310 Frequent Shopper Program Kudler Fine Foods created a frequent shopper program which gives customers incentives to continue shopping there. Their rewards are determined by how much is spent on groceries and how frequent purchases are made. “Frequent Shopper Program proves the ability to gather data for marketing programs and run promotions for the loyal customers.” (Frequent Shopper). Web based advertising would allow for major cost reduction and provide helpful and effective consumer awareness about said products. In order for Kudler Fine Foods to develop a functioning frequent shopper program, it must track and monitor consumers shopping behavior.
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.
to Expected Realizable Value 60,000 EXERCISE 19-1 (15–20 minutes) (a) Pretax financial income for 2012 $400,000 Temporary difference resulting in future taxable amounts in 2013 (55,000) in 2014 (60,000) in 2015 (75,000) Taxable income for 2012 $210,000 Taxable income for 2012 $210,000 Enacted tax rate 30% Income taxes payable for 2012 $ 63,000 (b) | | Future Years | | | | 2013 | 2014 | 2015 | Total | | Future taxable (deductible) amounts | $55,000 | $60,000 | $75,000 | $190,000 | | Tax rate | X 30% | X 30% | X 30% | | | Deferred tax liability (asset) | $16,500 | $18,000 | $22,500 | $ 57,000 | Deferred tax liability at the end of 2012 $ 57,000 Deferred tax liability at the beginning of 2012 0 Deferred tax expense for 2012 (increase in deferred tax liability) 57,000 Current tax expense for 2012 (Income taxes payable) 63,000 Income tax expense for 2012 $120,000 Income Tax Expense 120,000 Income Taxes Payable 63,000 Deferred Tax Liability 57,000 (c) Income before income taxes $400,000 Income tax
Question : (TCO 7) Pritchard Company manufactures a product that has a variable cost of $30 per unit. Fixed costs total $1,500,000, allocated on the basis of the number of units produced. Selling price is computed by adding a 20% markup to full cost. How much should the selling price be per unit for 300,000 units? 6.
The first function starts when the source of the supply is transferred to the producers of the product for the transformation process. Once the producers are finished, a distributor then process orders and prepares items for shipment after a review from the retailer. Retailers then receive the orders placed to put into inventory so that the consumers are able to purchase product. The order processing and management category is designed to offer consistent, objective and auditable inventory assessments for financial reporting purposes for the retailers to be able to compete in labor-intensive industries nationally, customary costing approaches help generate the most accurate collective values for the cost of goods sold and ending inventories (Lockarmy III & Smith,