Star Question Company A reports the following in its financial statements: *All sales are on credit. How much did the company A collect in cash from debtors.

Slides:



Advertisements
Similar presentations
FINANCE HIGHER BUSINESS MANAGEMENT UNIT 3. IMPORTANCE OF FINANCE Ensures that there are enough funds available to get the resources needed to meet objectives.
Advertisements

Financial Records & Statements Ch PoB 2011.
18-0 The Cash Budget 18.4 Forecast of cash inflows and outflows over the next short-term planning period Primary tool in short-term financial planning.
 We sell the goods on credit  Customers become debtors.  Some debtors may not be able to pay  When the business cannot collect back the money from.
Journalizing Closing Entries
© 2004 The McGraw-Hill Companies McGraw-Hill/Irwin Name of entity 2. Title of statement 3. Specific date 4. Unit of measure The Balance Sheet reports.
Short-Term Finance and Planning
Accounting & Finance Club Meeting Lecture Topic: Cash V.s. Accrual Basis By TJ Wang, Ph.D. January 28, 2010.
403MSBASOCF.ppt1 Statement of Cash Flows Links Balance Sheet and Income Statement elements to change in cash position. Integral part of “holy trinity”
Accounting for a Service Company.  Record Transactions  Prepare a Trial Balance  Make Adjusting Entries  Prepare an Adjusted Trial Balance  Financial.
Financial Budgeting Managerial Accounting Prepared by Diane Tanner University of North Florida Chapter 41.
Statement of Cash Flows Chapter Understanding the purpose of a statement of cash flows. Learning Objective 1.
Completing the Accounting Cycle Completing the Accounting Cycle C H A P T E R 4.
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 18-1 Understanding Cash Flow Analysis.
Financial Statement Analysis I: Chapter 4 ©NACM. General Chapter Notes A. The Statement of Cash Flows as a Derivative Statement B. FASB 95 Analysis: Cash.
FINANCE BASIC FACTS. Sources of funds Internal Retained profits Sale of assets Using trade credit Investing surplus cash Reducing inventory External Personal.
Accounting and Financial Reporting Entrepreneurship & Small Business Management.
Financial Statements Q&A. Name a type of Financial Statement?
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 6-1 Creating a Worksheet.
Accounting for a Service Business Unit 1.5 Income Statements.
Course Setting up Financial Ratios. What are Financial Ratios? A financial ratio is a relative magnitude of two selected numerical values taken.
USING THE INFORMATION IN THE FINANCIAL STATEMENTS Financial ratios are calculated to evaluate the short-term liquidity of a company. These ratios include.
Learning Objectives Understand the Business – LO1 Describe common operating transactions and select appropriate income statement account titles. Study.
Overview of Financial Statement Analysis Chapter I.
Communicating and Interpreting Accounting Information Chapter 5 McGraw-Hill/Irwin © 2009 The McGraw-Hill Companies, Inc.
1 Chapter 9 Analysis of Financial Statements. 2 I. General Accounting Principles A. Reliability B. Understandability C. Comparability.
18-0 Short-Term Borrowing 18.6 Operating Loans Committed vs. non-committed Letter of credit Accounts receivable financing Covenants Factoring Securitizing.
JOURNAL ENTRIES JOE’S BARBER SHOP RECEIVED $40,00 CASH FROM OWNERS AND ISSUED COMMON STOCK TO THEM.
The Financial Planning Process Liquidity Liquidity Working Capital Working Capital Inventories Inventories Capital Budgeting Capital Budgeting Capital.
Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-1 Understanding Accounting and Financial Statements.
CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 18-1 Understanding Cash Flow Analysis.
McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin.
Chapter 2 Introduction to Financial Statement Analysis.
Debtors Turnover Ratio:
Module 2: Statement of Cash Flows ACG 2071 Created by M. Mari.
1-1 Chapter 1 Financial Statements: An Overview Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall.
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 18-2 Preparing the Operating Activities Section of a Statement of Cash Flows.
The Income Statement Balance Sheet –The financial condition of the company on a certain date (a snapshot on that date) –What is OWNED and what is OWED.
Opening Activity What do you OWN?What do you OWE? What I OWN – What I OWE = Personal Net Worth Would you consider selling any items you own?
Frank Wood and Alan Sangster, Frank Wood’s Business Accounting 1, 12 th Edition, © Pearson Education Limited 2012 Slide 35.1 Chapter 35 Single entry and.
ACCT 212 Week 1 to 7 All Discussion Questions Check this A+ tutorial guideline at
Unit 3: Financial Ratios
Financial Budgets Chapter 7 Slides prepared by Peter Miller
Extending Financial Statement Information on a Work Sheet
Short-Term Finance and Planning
Copyright © 1999 Addison Wesley Longman
© 2014 Cengage Learning. All Rights Reserved.
The Combined Journal Chapter 11.
Accounting and Financial Information
The Income Statement Chapter 3.
Chapter 3 Financial Statements
Cash in the Annual Accounts
Income Statement Farwell Company has the following information available from its most recent fiscal year. Use the relevant information to determine the.
Accounting Equation.
Unit 4 The Accounting Cycle for a Merchandising Corporation
Extending Financial Statement Information on a Work Sheet
Source: Century 21 South-Western Accounting 9th Edition 2009
7 – Reporting Revenue & Receivables CORPORATE FINANCIAL REPORTING
Even More Financial Ratios
Financial Records and Financial Statements
LESSON 6-3 Extending Financial Statement Information on a Work Sheet
Receivables management
INTRODUCTION FINANCIAL ACCOUNTING Bangor University Transfer Abroad Programme Lecture 15 (review Ch. 5, 6 & 7)
Uber's Struggle with Profitability
Extending Financial Statement Information on a Work Sheet
Financial Statements.
Extending Financial Statement Information on a Work Sheet
Extending Financial Statement Information on a Work Sheet
1. Recognized $80,000 of revenue on account.
QuickBooks Accounting 101.
Presentation transcript:

Star Question Company A reports the following in its financial statements: *All sales are on credit. How much did the company A collect in cash from debtors during 2006?  320000 + (29865-17886) = $331,979K How much sales would have been reported by the company in 2006 if Company A would have been using cash accounting and not accrual accounting? $331,979K Identify which SEC report is the best place to find the following information. Terms of the CEO’s compensation and the total compensation paid to the CEO in the prior fiscal year. Regulation 14-A (Proxy statement) Why a firm changed its auditors. Form 8-K (Current Report) 2005 2006 Account Receivable, net $ 29,865 K $ 17,886 K Net sales $240,000 K $320,000 K