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Gibson Company has net sales of $3,500,000 and average gross receivables of $324,000.
Is J. Shaffer Company's days' sales in inventory as computed realistic in comparison with the actual days' sales in inventory?
Szabo Company had an average inventory of $280,000 and a cost of goods sold of $1,250,000.
Should replacement cost of inventory and cost of goods sold be used, when possible, when computing days' sales in inventory? Discuss
Evaluate the results of your computations in regard to the short-term liquidity of the firm.
The gross receivables balance at April 30, 2010, was $75,000, and the inventory balance was $350,000 on this date.
Comment on the sales to working capital ratio for J.A. Appliance in relation to the industry average and what this may indicate.
Will the substitution of the note receivable for the account receivable improve the liquidity of Marvick Enterprises?
Why is the equity in earnings of nonconsolidated subsidiaries sometimes a problem in profitability analysis? Discuss with respect to income versus cash flow.
How does the declaration of a cash dividend affect the financial statements? How does the payment of a cash dividend affect the financial statements?
An income statement is a summary of revenues and expenses and gains and losses, ending with net income for a specific period of time.
Estimate the tax rate for unusual write-offs based on the taxes on operating income.
Compute earnings per share before extraordinary items and net earnings.
At the end of 2012, vandals destroyed your financial records. Fortunately, the controller had kept certain statistical data related to the income statement.
What is a ratio? How do ratios help to alleviate the problem of size differences among firms?
Discuss how these ratios will help you make appropriate financial decisions as they relate to your role as a financial manager.
Computer inventory turnover and days' sales in inventory for the three months ended March 31, 2010.
A rental agency collects rent in advance. Why is the rent collected treated as a liability?
Explain how the issuance of a convertible bond can be a very attractive means of raising common equity funds.
What would be the amount of noncontrolling interest on the balance sheet of Corvallis Corporation?
Compute the amount of dividends that must have been paid to preferred stockholders and common stockholders in each year.
Financial accounting is designed to measure directly the value of a business enterprise. Comment.
Describe the purchase method of accounting for a business combination.
Analyze the effects of the errors on income for 2008, 2009, and 2010, and the 2010 ending balance sheet.
The matching concept involves the determination of when to recognize the costs associated with the revenue that is being recognized.