that beautiful card and gift given to us for Christmas. After appreciating the token we would ask him the reason and motive behind such an expensive foodstuff delivery. And based on the suppliers answers we would take the next step. 2. Sales Expense The second case is stating that a purchasing manager would give us their first order, expecting that we will agree to make a donation of P2, 000 to his favorite charity, a local youth sports team. By applying principle of double effect we would
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BUSINESS CASE Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In ACCTBA1 C39 Zapata, Kevin Bryan Z. June 27, 2014 The date is November 12, 2013. You are the owner-manager of AZTEC Software- a single proprietorship owned company that is currently in financial difficulty. AZTEC needs a new large bank loans if it is to survive. You have been negotiating with several banks, but each has asked to see your 2013 financial
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Introduction At Toy World Inc., President Jack McClintock is considering the adoption of a level monthly production plan for the coming year. The manufacturer of children’s plastic toys currently employs a production plan that follows the seasonality of sales. In considering whether to implement a level monthly production schedule, we compared the benefits and costs of both methods in relation to the financial and operational needs of the business. This allowed for an in-depth analysis of the savings
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sales 5 million footballs for the first year 40% next 3 years 15% for two years and then 10 % forever. 6. sales price 80 and grow at 10% 7. cost is 45 and grow at 8 % per annum 8. Expense related with selling and admin excluding depreciation are 15% of sales each year. 9. Interest expense will be 8.5% of total debt at the beginning of each year. 10. Each year the target cash balance will be 2 % of sales. 11. All sales will be made on credit and A/c receivable will be 10%
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Working capital may be a foreign term to some managers and so we should first begin by defining this term. Generally working capital represents those current assets such as cash, marketable securities, accounts receivable, inventory and pre-paid expenses. Furthermore net working capital would take the calculation further and reduce working capital by the current liabilities such as accounts payable, short term borrowings and accrued liabilities. Understanding these terms is crucial because a company’s
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------------------------------------------------- Business Plan By 2014 ------------------------------------------------- Business Plan By 2014 Godiva Chocolatier Restaurant 2022 Chocolate Drive Godiva Chocolatier Restaurant 2022 Chocolate Drive (004) 234-5678 Table of Contents I. Executive Summary 1. Objectives 2. Mission 3. Keys to Success II. Market Analysis Strategy 1. Market Segmentation 2. Target Market Segmentation Strategy 3. Service Business Analysis
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receivable is the net amount the company is willing to get in the amount of cash. 4. Under write-off method, it calculated as the loss to bad debts expense as the company considers the account will be uncollectable. On the other hand, every bad debt wire-off will be count under the allowance account by using the allowance method. 5. When the expenses matching well with revenue, the estimation of bad debt can be existed. 6. There are two common categories; percentage of sales, which is used
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management team 2. Exploit the enormous value of the Real Madrid brand and players’ images to increase revenues. 3. Impose financial discipline to ensure that the team did not become overextended. Key to this discipline was limiting the players’ expense. With the new strategy of Zidanes & Pavones, Real Madrid would sign one star player per year and focus on the development of players through the farm system or cantera. Issues: 1. On the brink of bankruptcy. 1990’s Crisis: (Growth in revenues
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Lube - 0.5 0KL ( Rs 10000 per KL) 5000 ----------------------------------------------------------- Total Income 29400 ----------------------------------------------------------- EXPENSES Manager & Staff Salary Rs 8000 Security Guard Rs 1500 Light Rs 3000 Telephone Expense Rs 1000 Other Expenses Rs 1000 Teravelling Exp Rs 1000 Bank Loan Intt(p.m.) Rs 3000 ---------------------------------------------------------------- Total Rs 18500 ----------------------------------------------------------------
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The auditor would especially focus on the Machine-Tech division because of the incentives identified in part a. d. There is a major change in perating expenses O and Income from operations this . If change was not expected, it could suggest revenue recognition fraud. The decline in bad debt expense and increase in depreciation expense, which are management estimates, could suggest the use of estimates to overstate income . e. Fraud Risk 1 2 3 4 5 6 7 8 9 10 11 Yes Yes Yes No Yes Yes
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