should include a common size statement (vertical analysis) in the report. This analysis will allow Jay and Jack to compare common size income statement analysis is stating every line item on the income statement as a percentage of sales and the balance sheet in comparing everything to total assets. Since there is more than one year of financial data, you can compare income statements to see your financial progress. This type of analysis will let you see how the revenues and the spending on different
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Analysis CC: Board of Directors Team A has completed a ratio analysis for Riordan Manufacturing. The team analyzed liquidity ratios, profitability ratios, and solvency ratios. The team also did a horizontal and vertical analysis for company’s balance sheet and the income statement. Liquidity ratios are the temporary capabilities of a business to compensate for its established requirements and unanticipated needs for cash. Suppliers and bankers are the short-term creditors who are mostly interested
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sale is a sales transaction by which the buyer is allowed to take immediate possession of the purchased goods and pay for them at a later date. The revenues generated from credit sales to be collected are recorded in Accounts Receivable in the balance sheet. However, not all of the accounts receivable can be fully recovered as some of the
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PROJECT A - Case 9-30 Student Name: xxx SALES BUDGET: April May June Quarter Budgeted unit sales 65,000 100,000 50,000 215000 Selling price per unit 10 10 10 Total Sales 650,000 1,000,000 500,000 2,150,000 26000 SCHEDULE OF EXPECTED CASH COLLECTIONS: 40000 April May June Quarter 20000 February sales $26,000.00 $- $- $26,000.00 86000 March sales
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Ghana of late has created stiff competition. This situation is likely to make most firms relax their policies on working capital especially on loan advances to customers so as to maintain or increase their market share. This could lead to huge unpaid balances which may put the finances of the companies in danger given the fact that the depositors will one day come for their monies. These can have a telling effect on the cash flow position of the firm which indeed raises an issue of profitability and survival
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1. The current ratio is one of the most famous of all financial ratios. It serves as a test of a company's financial strength and relative efficiency. This ratio is a general and quick measure of liquidity of a firm. It represents the margin of safety or cushion available to the creditors. The company in this Case # 1 has relatively high current ratio. It is an indication that the company is liquid and has the ability to pay its current obligations in time and when they become due. Current ratio
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client’s inventory, an auditor identified the following issues that need audit attention. 1. Inventories are properly stated at the lower of cost or market. Valuation or Allocation. 2. Inventories included in the balance sheet are present in the warehouse on the balance sheet date. Rights and obligations. 3. Inventory quantities include all products, materials, and supplies on hand. Completeness. 4. Liens on the inventories are properly disclosed in notes to the financial statements
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AC2101 – Accounting Recognition and Measurement Agenda for Seminar 1 A. Course introduction 1. Contents overview Seminars 1 to 3 Conceptual Issues Underlying Accounting Recognition and Measurement presented by 2. Assessment components & expectations 3. Administrative matters B. Conceptual overview 1. Purpose of accounting & its role in contracting 2. Concepts of recognition, measurement & disclosure in accounting Low Kin Yew Associate Professor Nanyang Business School Semester
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Exercise 4.1 Cash transaction a |Document |Receipt (Copy) | b |Transaction |Cash sale (of 2 top hats) | c |Account |Debit |Credit |
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entry to the ledger. These steps would be followed by preparation of a trial balance and then with the reporting of financial statements. 4. A general journal can be used to record any business transaction or event. 5. Debited accounts are commonly recorded first. The credited accounts are commonly indented. 6. Expense accounts have debit balances because they are decreases to equity (and equity has a credit balance). 7. A transaction is first recorded in a journal to create a complete record
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