Accounts receivable Essay Samples and Topic Ideas
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accounts receivable, inventories and prepaid expenses (Marketwatch, N.d.). The two largest current assets reported by the Coca-Cola company were those of June 30, 2014 for the amount of $ 92.02 billion dollars. We also have those of 2015 which were 90. Billions of dollars. Since 2014 until 2018, the current total assets reported by the Coca-Cola company is: 92.02B in 2014, in 2015 90. B, in 2016 87.27b, in 2017 87.9b and 2018 a total 83 assets was reported.22b (Marketwatch, N.d.). The Coca-Cola company has about seventeen accounts receivable in which we can find: payroll payments, taxes, debts to long or short-term terms, etc.;In accounts payable we can that in 2014 the total accounts for stopping...
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Order now with discount!accounts receivable and these in cash. Then, the net working capital reflects what amount of goods the company has so that it can continue to exercise its work while complying with the payments of liabilities in a short term. The administration is used in private and public companies since it is necessary to have a control that manages regulations that are used with agility to work successfully. In daily living in these times the administration requires that it be updated to be able to compete with competitive advantages and social factors. The elements that interact so that the administration is organized depends on the fact that each project is planned with the expectations of the objective. Each...
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accounts receivable, merchandise) and non -current active with a period of more than a year (fixed and intangible). Liabilities: Debts of the company with third parties, it is divided into current with maximum one year (taxes or appointments to pay, suppliers) and non -current that can be in the long term (accounts payable diverse, loans of the banks) Heritage: everything that a company possesses (capital, reservations, accumulated results that can be utilities or losses) It is important to know that the 3 previous points make up the accounting equation (active = liabilities+net equity) Status of profits and losses: It presents the result of operations of a company (utilities or...
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accounts receivable and those that are payable. The investor should be provided with the maximum rates of tax that his or her investment income would be subjected to. The rate of income tax often varies compared to the corporate entity that would be required to pay corporate tax on the investment income. Providing tax information would enable the investor to see the need for putting a higher level of investment into a particular company to increase higher rates of income (Bean 2015, p13). Summary The finance, tax and legal information play a crucial role in determining the interest of the potential investor. The company seeking an investor should provide the information and make it reliable. The...
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Accounts Receivable and credits a revenue account while the adjusting entry for an accrued expense debits an expense account. The Adjusting entries for deferrals include unearned revenues and prepaid expenses. The adjusting entry for an unearned revenue debits an unearned revenue account and credits a revenue account. The adjusting entry for an accrued expense debits an expense account such as Wages Expense and credits a liability account such as Wages Payable. When entering any adjustments, the details such as the type of adjustment, the adjustment reason and its effect on the financial statement if omitted should be included. Importance of the Topic Covered Accounting records like any other...
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accounts receivable into cash 8.45 times for the 12 months that it operated. This also means that the company’s accounts receivable were collected in an average of 43 days in the whole year that the company operated (365 days /8.45 = 43.19 days). The inventory turnover ratio that measures the number of times the company is able to convert its inventory into revenue (Kimmel et al., 2009) cannot be computed as the company did not have any inventory for the period ended 31st December 2016. Profitability Ratios Profitability ratios are ratios used to evaluate the profitability of a company. These include the Asset turnover, Profit margin, Return on assets and the Return on common stockholders’...
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Accounts Receivable and Collections. Lessons For Financial Success, 1(1), 1-20. Retrieved from...
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accounts receivable equals to 245,000 euros which when converted into U.S dollars at the prevailing exchange rate of 1 euro at $1.04 will be $254, 800. The company is exposed to foreign exchange risk also known as the currency risk brought about by the market fluctuations. Possible sources of the international risk include cases where company’s loans are in foreign currency, revenue is received in foreign currency, firm engages in imports and exports, and some of the firm’s costs and incomes are denominated in foreign currency (Morgan, 2015). According to Morgan (2015), forecast and revaluation risks are the two currency risks that directly affect cash and earnings cycle. The exchange risk...
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accounts receivable cycles. The cost of foregoing it is thus the cost of tied up cash for the firm due to longer than preferred receivable cycles and unsatisfied customers that would miss out on the 2% discount. The impact of the opportunity cost is thus dependent on the liquidity status of the firm. References Yang, S. A., & Birge, J. R. (2013). How inventory is (should be) financed: Trade credit in supply chains with demand uncertainty and costs of financial distress. Available at SSRN...
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accounts receivable where necessary. Besides, the hotel should limit pre-paying expenses to keep funds in its accounts for as long as possible. The operating profit for the food and beverages is -47.39%. These means that this section is not doing well financially. Since the foods and beverages department constitutes a significant business segment for the hotel, there is a need for management to reconsider their financial management strategies to turn around the poor performance. Opportunities High economic growth in Switzerland especially in the tourism and hospitality industry. It is projected that the tourism and hospitality industry will expand in the short-term (2016-2020). Luzern Townhouse Hotel...
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