What would happen to a company if it ran out of cash? Explain the importance of good working capital management and the cash conversion cycle

Q: How much is the Continuing Franchise Fee Revenue to be recognized in 2021?

A: Given in the question: Royalty 5% Franchise Outlet opened May 1, 2021 Average…

Q: Corporation BBB, a public company, give you the following Financial Information for this year: ($)…

A: Rental Profit: $10,000 Taxable Capital Gains: $30,000 Net Capital Loss Carry Forward: $20,000

Q: QUESTION 1 B. Suhaimi, a senior auditor in charge, is called upon to audit a client, Panda Motor…

A: Audit Risk Although the audit opinion declares that the financial reports are devoid of any…

Q: Which of the following statements concerning the unit product cost of Product W2 is true? (Round…

A: Product W2     Traditional costing:     Estimated overhead cost 440000   Divide by Direct…

Q: Activity a b с e Predecessor a с b&c Duration (weeks) 2 3 3 4 5 Budget $ 300 200 250 650 420 Actual…

A: Answer -    Step 1 - Calculation of Actual cost of work performed (ACWP) = 400+180+315+300+280 = $…

Q: What steps are taken to prepare Income and Expenditure Account from a Receipt and Payment Account?

A: Introduction: Income and expenditure account to determine the surplus or deficit of income over…

Q: Ocean and Fish is a takeout food store at a popular beachside resort. Tommy Tillett, owner of Ocean…

A: Introduction: The contribution margin is the percentage of a product's total sales that is not…

Q: Before Khalish completes the audit, critically analyse Bright Bhd.'s financial statements from…

A: An auditor when performs the audit on the financial statements of the company have to give or in…

Q: PROBLE On January 2, 2021, Apple Co. sold merchandise to Mango, Inc. for P1,500,000. The cost of…

A: Lets understand the basics. Installment sales is a sales in which seller allows buyer to pay amount…

Q: 1. how much is the Net Income reported by the Branch? 2. how much is the True Income of the Branch?

A: Net income reported by branch is calculated as follows: Net income = Sales - ( opening inventory +…

Q: Brilliant Company sold a franchise to sell its products for P5,000,000 on January 1, 2021. The…

A: The revenue to be recognized would be annual amount of installment fee and the commission to be paid…

Q: Recommend THREE (3) audit procedures which can be performed to prevent external auditor's reliance…

A: The external auditor shall determine whether work of the internal audit function can be used for the…

Q: You purchased a $1,000 bond with a coupon rate of 8 % on January 1, 2021 for $910. On the same date…

A: Answer:-  Meaning of bond:- Bonds are corporate debt units that are securitized as assets which are…

Q: Concord Industries has adopted the following production budget for the first 4 months of 2022. Month…

A: Answer : Direct material purchase budget = It is a budget which can calculate how much material is…

Q: What do you do? Students will identify where in the accounting cycle each of the following nine…

A: Accounting Cycle The unadjusted trial balance, the worksheet, identifying transactions, entering…

Q: a. Radiant Age Berhad acquired 30% of the ordinary shares of Glitter Berhad on 1 January 2022.…

A: One firm can gain control of another by acquiring or owning common stock. If one firm purchases a…

Q: In 2022, the enacted tax rate is 25% for all current and future years, and Hynde Corp., in its first…

A: Deferred tax asset is like a prepaid tax the benefit of which will be received in future and a…

Q: Badgersize Company has the following information for its Forming Department for the month of August.…

A: The equivalent units are calculated on the basis of the percentage of the work completed during the…

Q: Question What type of policy should James and Joanne consider covering the diamond wedding ring?

A: James and Joann recently got married and purchased their new home using a mortgage.  They remembered…

Q: [The following information applies to the questions displayed below.] Ries, Bax, and Thomas invested…

A: Allocation of Profit - There are two ways profit shall be allocated to the partners a. Equally b.…

Q: Complete the plant asset record for the following asset. The business used the asset for the entire…

A: As the depreciation method is straight line method, the depreciation is calculated as follows:…

Q: Schedule of Expected Cash Collections Collection of Cash Sales Credit Sales: Collected Month of Sale…

A: Answer:-  Income statement meaning:- Income statement is a part of the financial statement of the…

Q: QUESTION 3 Khalish is the auditor of Bright Bhd. preparing the final audit for the year ended 30…

A: The management representation letter is one that is written by the company's top or the most senior…

Q: Insight Company's standard factory overhead rate is $3.76 per direct labor hour (DLH), calculated at…

A: The variance is the difference between actual data and the standard cost of production. Variable…

Q: Auerbach Inc. Issued 10% bonds on October 1, 2021. The bonds have a maturity date of September 30,…

A: Bonds are a form of debt or liability for the business, on which regular interest payments also…

Q: 0, yielding a $4,300 gain. e. Prepaid Expenses and Wages Payable relate to Operating Expenses on the…

A: Statement of cash flows is one of the financial statement of the business which shows all cash…

Q: 4) Assume the bond is redeemed at 94 on May 1, 2022. Record the redemption of the bond with the…

A: Issue price of bonds 3255000  =3500000*0.93 Discount on issue 245000  =3500000-3255000…

Q: Please indicate whether each entry is accounted for in profit or loss (P/L), other comprehensive…

A: Lets understand the basics. Profit or loss account is statement which shows revenue and expense…

Q: Exercise 10-16 Disposal of assets LO P2 Diaz Company owns a machine that cost $126,900 and has…

A: The book value of an asset is calculated as the difference between the cost of assets and…

Q: Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of…

A: Introduction: The productivity ratio is a numerical statistic used to compare output across time.…

Q: B. Suhaimi, a senior auditor in charge, is called upon to audit a client, Panda Motor Bhd, which…

A: Planning - The creation of a plan for the course of action or the steps to be taken in order to…

Q: His total home office expenses are: His net business income based on notes 4 to 6 above is : 7. Paul…

A: 6. Total office expenses = 25% of personal residence  Total cost associated with Paul's home is as…

Q: Required: Prepare the entry to close the firm's Income Summary account as of its December 31…

A: Profit & Loss Appropriation Account is prepared by the Partnership Firm to distribute the Profit…

Q: Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours…

A: Variable overhead rate variance: Variable Overhead Rate Variance is the difference between what the…

Q: how much is the Allowance for Overvaluation after adjustment?

A: Given that, Allowance for overvaluation = P157,500 Shippment from home office = 120% of cost…

Q: Bank XYZ Balance Sheet Total reserves ASSETS Required reserves Excess reserves $3,800,000 $800,000…

A: Answer -  Part 1 - Total checkable deposits at Bank XYZ grow by $1,000,000 because of this deposit…

Q: During the most recent month, the company started and completed two jobs--Job B and Job K. There…

A: Pre Determined OH :— A predetermined overhead rate is an allocation rate that is used to apply the…

Q: The final materiality figure for the 2019 audit of Takunda (Pty) was set at R150 million. During the…

A: An opinion from an auditor is a certification that goes with financial statements. Based on an audit…

Q: Fast Wire Incorporated manufactures a scrambling device for cellular phones. The main component of…

A: The productivity ratio can be calculated by dividing the number of phones manufactured by total…

Q: What is the account that is used to close out the revenue and expense accounts at the end of the…

A: The closing entries are prepared to close the temporary accounts of the business.  The temporary…

Q: Can also do a journal entry when the on December 31 Record the adjustment entry for $40 interest…

A: Ideally cash balance as per cashbook must reconcile with bank balance as per bank statement. If…

Q: Smatter Corporation purchased land for a new building. Which of the following costs would not be…

A: Introduction: Plant assets are fixed assets having a lifespan of more than a year that a firm…

Q: finding the common stocks for year 2-4

A: Common stock refers to the security which states the ownership of business and under liquidation,…

Q: Prepare three journal entries: one to establish the petty cash fund, the second to record the…

A: Petty cash books is created to make day to day expenses by division without involvement of head…

Q: Sales volume per annum Unit selling price Production cost per unit: Direct materials Direct labor…

A: Explanation of Concept:-  Cost : - is the expenses which have been incurred for production,…

Q: Ries, Bax, and Thomas invested $80,000, $112,000, and $128,000, respectively, in a partnership.…

A: Partnership is one of the forms of business organizations. It includes the carrying on of business…

Q: Countywide Cable Services, Inc., is organized with three segments: Metro, Suburban, and Outlying.…

A: Income statement is prepared by the business organizations so as to know how much amount of net…

Q: Prepare an amortization schedule for the Minco Inc. bond showing only 2020. (Round your intermediate…

A: You have quoted multiple questions under a single question and the bond amortization schedule is the…

Q: Company Co. has 1,000 employees and it decides to grant each of the employees 200 share options as…

A: Non-vesting condition determines whether the award holder will get the share-based payment, but does…

Q: If the hurdle rate is 10%, what is the approximate net present value? Ignore income taxes.

A: Net Present Value (NPV) is the difference between the Present Value of Cash Inflows and the Present…

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.