If you a controller and the company always aim sustainable net income, but the company for this year had extremely high income due to increase of sales , so the president ask you to increase the yearly allowance for doubtful account from 4% to 6% of net credit sales because he is nervous the stockholders might expect the company to always be able to sustain such a high net income. Q/ as controller what actions should you take and whay ?
Q: It is important to consider the time value of money along with financial risk when making financial…
A: The concept of the time value of money defines that with the change in time, the worth of money also…
Q: Is it true or false that corporations muse issue common stock, but may or may not decide to issue…
A: When two or more than two persons as a group form a business to operate it, the formation is known…
Q: Abercrombie & Fitch, once the favorite of loyal teens, is considering lowering prices on all…
A: Sales revenues can be defined as a form of income which is generated by selling the company's…
Q: Alderson Metals is compiling a cash balance projection by quarter for next year. Which one of the…
A: Alderson Metals is compiling a cash balance projection by quarter for next year. Increasing the…
Q: Steve Osbourne is considering opening a business, but the major decision faced is how to organize…
A: In the context of the given, Steve has faced confusion that how to organize a start-up business. he…
Q: The controller of a retail company has just had a $50,000 request turned down toimplement an ABC…
A: Activity-Based Costing Systems Activity-based Costing is defined as the method of costing in which…
Q: Uncle Benson SuperMart has been one of the fast growing Caribbean firms for the last five years in…
A: Accounts Payable are the short term debt obligations of a corporation. It represents the money a…
Q: have recommended that the company change its inventory method from FIFO to LIFO . The change would…
A: Kohler may be viewed as holding a position that favors his personal interests because he is of the…
Q: g skills regarding screening and preference methods to decide on the best system for the company.…
A: Introduction: The time value of money states that the value of today's dollar in more than the value…
Q: Kate is very pleased with the results of the first year of operations for Kate's Cards. She ended…
A: Financial Statement: A financial statement is the complete record of financial transactions that…
Q: Which of the following is the MOST correct? In reference to the time value of money, the present…
A: In reference to the time value of money, the present value is always labeled as t=1 is incorrect.…
Q: You are the financial controller of Pack West (Pty) Ltd. Your company is experiencing difficulties…
A: For calculation of cash balance at the end of period add receipt from debtors and cash sales in…
Q: Abercrombie & Fitch, once the favorite of loyal teens, is considering lowering prices on all…
A: The lowering of price may increase the volume of sales, however, at the same time it may affect the…
Q: Scenario: Steve Osbourne is considering opening a business, but the major decision faced is how to…
A:
Q: “We believe that it is important for director’s reward to be performance -related. Moreover, we…
A: Disclaimer: Since you have asked multiple question, we will solve the first question for you. If you…
Q: Upon further investigation, you have found that the amount of account payables for Companies A and X…
A: The relationship between two figures from two different balance sheet dates is represented by…
Q: o increase Sales and Sales Growth, the top Marketing Manager suggested to price products slightly…
A: Sales now are $80 million Required return "i" is 15% Initial investment required is $1 million…
Q: Although he has enough to start the business now as a partnership, he believes cash flow may be an…
A: corporation is such a form of business that is started requireds rules and regulation to be…
Q: nowing how the various sections of the company are functioning will help the manager identify where…
A: Making decisions about improving the profitability of a firm is an important task of the management.…
Q: Answer the following questions for Steve. A) Explain the corporate characteristic termed “no…
A: corporation is such a business entity in which ownership is lie in the hands of shareholders with…
Q: Company X, S.A.'s current sales are 12.5 million. An increase of 5% is estimated for next year, and…
A: The question is based on the concept of income (profit) calculation. Any change in sales and…
Q: 2. The ABC Company has opened 10 new stores. It has incurred a great deal of expenses associated…
A: Investment for any opportunity need an analysis which is called capital decisions. This is the way…
Q: ETHICS CASE The controller of Diaz Fashions believes that the yearly allowance for doubtful…
A: a) The stakeholders are the parties which take interest in the company’s management. In the given…
Q: teve Osbourne is considering opening a business, but the major decision faced is how to organize the…
A: In my capacity as a consultant I will inform and educate and advise Steve with regards to a…
Q: Kerrigan Corporation announced on November 1, 2021 that company's CEO has been terminated and that…
A: Kerrigan Corporation is facing a decrease in profits over the last several years. The company has…
Q: Table A below provides selected information about the operations and financing policies of Eco 3.…
A:
Q: (a) faced tough situation to sustain their financial cash flow. During the first quarter of 2021,…
A: Month Sales(RM) Purchases(RM) August 1,500,000 960,000 (60%*1,600,000) September 1,600,000…
Q: Explain the corporate characteristic termed “no mutual agency” Explain the corporate…
A: Partnership is a form of business in which two or more person work together and the profit or losses…
Q: Ethical Situation: What Would You Do? Discussion Question As one of the newer district sales…
A: In the given situation, the new district sales manager is facing an ethical dilemma as to correctly…
Q: Uncle Benson SuperMart has been one of the fast growing Caribbean firms for the last five years in…
A: Accounts payable: Accounts Payable refers to short term debt obligations of a corporation. It…
Q: Abercrombie & Fitch, once the favorite of loyal teens, is considering lowering prices on all items…
A: (i) Sales = $3 billion Gross Profit margin = 55% Gross Profit = $3 billion×55%=$1.65 billion (ii)…
Q: A new CEO takes control of Do-Da Industries to turn it around (to make it profitable). Based on…
A: The controller here is essentially manipulating with the company’s books of accounts. This is being…
Q: Please help with this question.
A: The four key standards stated in IMA statement of professional practice area) Competence-Enhancing…
Q: Explain to Mr. Benson possible reasons why his firm is having difficulty meeting its payroll and it…
A: I would advise to mr. Benson that a comparison with industry average should be made to determine the…
Q: With the projected sales increasing it would be smart to how it going to the double declining method…
A: Depreciation: Depreciation is a systematic reduction of cost of an asset (generally fixed asset).…
Q: Employee retention is a major goal for Dynamic Thermoforming, Inc.Feedback from the employees had…
A: Net Asset Value refers to the concept which shows the market value per share of the mutual fund. It…
Q: Issue: Reed Kohler is in his final year of employment as controller for Quality Sales Corporation;…
A: Kohler may be viewed as holding a position that favors his personal interests because he is of the…
Q: The chair of the FASB at one time noted that “the flowof standards can only be slowed if (1)…
A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…
Q: The financial manager for "ERR" industrial Company would extend the credit terms from "net 30" to…
A: SOLUTION-1 1 Annual Sales = 31025,000 Cost of capital = 10% Daily NPV…
Q: When Jack ma started Ali express, he could not make any profit for the first three years. But, he…
A: Determination means the willingness and commitment to continue with the work even if some favourable…
Q: The Protek Company has been growing very fast, but profitability has declined from 11.85% to 2.36%…
A: Common size income statement represents each item in income statement as a percentage of total…
Q: You are in a committee meeting with the Head of Marketing and Head of Finance and are presenting a…
A: Credit sales of the business means goods and services sold to the customers on account. They have…
Q: Steve Osbourne is considering opening a business, but the major decision faced is how to organize…
A: Stockholder's Equity - Stockholder's Equity includes the amount contributed by shareholders issued…
Q: Which of the following is the most correct? A. In reference to the time value of money, the present…
A: Answer: The correct answer is option D. A strong ROE always indicates a strong year for a company.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Mr. Abdullah is an auditor in XYZ LLC. His job is to see the correctness of financial statements and to give suggestions. He came to know that his company is entering into a new product line, so he started discussing about it on various places and about its projection in the future. In this situation there is a chance of _________________. a. None of the options b. Familiarity threat c. Self review threat d. Advocacy threat Clear my choiceSuppose that a company called Futuristics, Inc hires you to work in Supply Cha Management. Your new manager sets up a meeting to discuss the Surfers, Inc. account. The meeting opens with the manager stating, "I just reviewed the financial report on Surfers, Inc. It really doesn't cost much to serve them, does i Which of the following would be an appropriate response to the manager's statement? Traditional accounting methods are perfect to help us make decisions about serving the Surfers, Inc. account Activity-based costing would be better to report the Surfers, Inc. results to the financial community Traditional cost accounting gives us a good measure for comparing by customer Activity-based costing could better show us how much it really costs to serve Surfers, Inc. Activity-based costing takes depreciation into account to enable us to know when to replace machinery119-Mr. Abdullah is an auditor in XYZ LLC. His job is to see the correctness of financial statements and to give suggestions. He came to know that his company is entering into a new product line, so he started discussing about it on various places and about its projection in the future. In this situation there is a chance of a. Advocacy threat b. Familiarity threat c. Self review threat d. None of the options
- The COVID-19 pandemic has affected one of your customers, NEST Ltd adversely. Even though the economies are fast recovering, they have contacted your company to request to purchase on credit instead of cash on delivery. Your boss, Alan, the Marketing Manager has instructed you to review their request. He has asked you to review NEST Ltd’s latest set of financial statements. (a)In addition, identify other information(other than balance sheet, incomes statement and cash flow statement) that will be helpful in deciding whether to accede to NEST Ltd’s request? (b)You have also noticed that compared to last year, the allowance for bad debt for Nest Ltd has increased from 2% to 4 % of the accounts receivable. Discuss how this information will impact your review.Which of the following would constitute an Agency Problem in the context of Business? Check all of the following that apply. Check All That Apply A manager authorizes a trip to Europe for himself at the company's expense even though he has no intention of doing any company business while on the trip. A manager makes a bad decision that costs the company tens of thousands of dollars, but he believes he is acting In the company's best interest rather than his own in making the decision. An employee takes home a box of pens for personal use without prior authorization, A manager turns down a project that analysis has shown to be profitable for the company because she is afraid of negative consequences for herself if something goes wrong.Consider the dilemma you might someday face if you are the chief financial officer of a company that is struggling to maintain a positive cash flow, despite the fact that the company is reporting a substantial positive net income. Maybe the problem is so severe that there is often insufficient cash to pay ordinary business expenses, like utilities, salaries, and payments to suppliers. Assume that you have been asked to communicate to your board of directors about your companys year, in retrospect, as well as your vision for the companys future. Write a memo that expresses your insights about past experience and present prospects for the company. Note that the challenge of the assignment is to keep your integrity intact, while putting a positive spin on the situation, as much as is reasonably possible. How can you envision the situation turning into a success story?
- Several managers in your company are experiencingpersonal financial problems and have asked that yourcompany switch from LIFO to FIFO so that they canreceive bigger bonuses, which are tied to the company’snet income. How would you respond to this request if youwere the company’s chief financial officer (CFO)? Wouldsuch a switch help the managers? Who could it hurt?24-Imagine that you are hired as an accounting consultant in a multinational company. The company is entering into a contract with a supplier. The company asked you to analyze all the information and suggest what should be the right date and payment mode along with all the conditions. This type of situation refers that O a. None of the options O b. You are following normative theory in accounting O c. You are following agency theory O d. You are a follower of positive theory in this situationMr. Bader is leaving the accounting practice to become the Finance Director of a client company. The ethical dilemma he is most likely to face would be a. Objectivity b. Integrity c. Professional Behavior d. Confidentialit
- Which of the following are examples of financial objectives that a company might choose to pursue? A Provision of good wages and salaries B Restricting the level of gearing to below a specified target C Dealing honestly and fairly with customers on all occasions D Producing environmentally friendly products Which of the following is true? A Management accounting is highly regulated B Financial accounting is highly regulated C Management accounting is externally focused D Financial accounting is only internally communicated Which of the following is NOT a connected stakeholder? A Shareholders B Customers C Competitors D Local community…The COVID-19 pandemic has affected one of your customers, NEST Ltd adversely. Even though the economies are fast recovering, they have contacted your company to request to purchase on credit instead of cash on delivery. Your boss, Alan, the Marketing Manager has instructed you to review their request. He has asked you to review NEST Ltd’s latest set of financial statements. (a)Identify the key financial statements. Explain how the information reported in these statements will help you to decide whether to accede to NEST Ltd’s request.Assume you are the controller of a large corporation, and the chief executive officer (CEO) has requested that you explain to them why the net income that you are reporting for the year is so low, when the CEO knows for a fact that the cash accounts are much higher at the end of the year than they were at the beginning of the year. Write a memo to the CEO to offer some possible explanations for the disparity between financial statement net income and the change in cash during the year.