Essays on Receivables

Vernon Rudolph established Krispy Kreme Dougnuts (KKD) in 1937 in North Carolina as a single doughnut shop. By the turn of the millennium, KKD had grown in leaps and bounds. As of April 2000, the company shares were trading at 62 times earnings. As of April 2000, KKD had charmed Wall Street analysts with 80% of them recommending a buy. However, as of 2004, the glamour story of KKD started to fall apart.

Historical Financial performance

Exhibit 1 shows that KKD top line grew by 202.2% from $220,243,000 in 2000 to $665,592,000 in 2004. Net income grew by ...

Significant Areas Addressed by Management

Cedar addresses the compliance of the guidelines of Government Accounting Standards Board in the city accounting reports. Compliance to (GASB) regulations through the provision of an overview of its financial performance for the fiscal year Accounting Policies Utilized by the City The policies include Analysis of financial statements The policies of liabilities, assets, deposits and investments (Rodenbeck, 2013) Statistical Section The statistical section will cover the computational outcomes of the management decisions. For example Depreciation of capital assets over the respective annual ranges The effects of deposits and investments Determining the values of the net assets, and its liabilities ...

TeleTech Holdings, Inc. (TTEC)

TeleTech Holdings is a technology services company whose main business is the provision of telephony services to businesses. The company operates call centers and BPO centers through which it connects customers to their companies. Through the provision of the telephony services, it creates a lasting customer experience, which in turn results in growing revenues and profitability of the companies that it represents. The various industries that it serves include the automotive industry, financial services, healthcare, government agencies, e-commerce entities, and the hospitality industry among others (TeleTech Holdings, 2017). In light of the above brief on TeleTech Holdings, the objective ...

Introduction

TSU has managed to build a business name in the industry in the past few years and has managed to maintain the name and increase the turnover due to the collective duty of each employee in the workplace. Hence, the success of the firm relies on the activities and actions of the employees as well as how they handle their duties and responsibility and ability to work together as a team. Despite the success of the firm, there exist potential areas that the employees can work together and steal from their employers. These are the areas that fraud could ...

Introduction

The vision 2030 for Saudi was designed to improve the local and the international position of the country along economic, social, political, and the peoples` dimensions. The plan was designed along three critical aspects that encompass the social, economic, people, and the political position. The three pillars that founded the plan were the vibrant society, ambitious nation, and the thriving economy. Along the vibrant society, the model focused on tapping the nation`s strong roots through the blending and optimizing on the natural resources and the community`s cultural heritages. The plan focused on developing and promoting fulfilling lives ...

Question 1: Why Cartwright Lumber Company needs cash

Despite the profitability of Cartwright Lumber Company, it still faces cash flow challenges. The financial statements indicate that the company has a low balance in its cash account. Profitability does not necessarily mean the firm has a stable cash flow. The income statements indicate that Cartwright Lumber has been profitable in each of the years from 2001. The net income has increased from $31,000 in 2001 to $44,000 in 2003. However, its cash balance has declined in each of the years. Large sales and profitability do not automatically translate into cash flows. The company has large balances ...

Introduction

Cash management is a complex task though it seems to be an easy job. It is a highly complex as well as detail oriented task. It is very necessary to effectively manage the cash that the company have. If the company fails to manage the cash effectively, then there will be problem in meeting the financial obligations. Failing to manage the cash effectively will affect the company’s operating, financing and investing activities. In sum, the whole cash flow system will be affected. To facilitate the cash management, the company prepares the cash budget and implements the proper cash ...

Apple manufactures iPhone, its mobile brand, iPad, Mac, the personal computer brand, iPod, the Apple TV brand, a few software applications, a couple of operating systems, and some accessories. The company also sells digital applications through the Apple’s own app store, iBooks store and Macintosh app store. The Company sells its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. The company also sells third-party mobiles, related computer hardware and software, and related accessories. These products are sold via the company’s ...

Alpha Group

Consolidated financial statement of financial position for the year ended 31st December, 2015. Items £ (000) £ (000) Long-assets 2014 2015 Investment property, fair value 2500 2500 Property, plant, $ equipment 4324 4818 Total long-term assets 6824 7318 Current assets Cash 200 140 Cash equivalent 30 20 Trade receivables 1900 1200 Inventory 1000 1950 Dividends 100 190 Non-controlling interest share 120 150 Inventory, fair value cost to complete and sell 180 150 Total current assets 3530 3800 Total assets 10354 11118 Equity and liabilities Share capital 1500 1250 Retained earnings 1910 1000 Profits for the year 1000 1250 Dividends payables 100 190 ...

ANALYSIS

Analysis Net Sales and Receivables, Inventory, DSO and Liquidity The chart shows that net sales of the company are less than receivables for the entire period. This indicates that there were outstanding receivables at the start of the financial year. Thus, the outstanding amount at the start of every month plus the credit sales made during the month exceeds net sales. This happens because the company takes almost two months to collect receivables. The number of days taken to collect receivables is illustrated below. The DSO for the entire period considered is above 60 days in all the months ...

Healthcare Providence to every citizen is the prime responsibility of medical care centers and other health departments working simultaneously. It is imperative for health care centers to educate and inform self-pay patients how to deal with insurance procedures. The medical institutes are devising strategies to collect cash from self-pay patients efficiently. Many of health care institutes help out self-pay patients to get insured but still many of self-pay patients do not get proper outlets or platforms to insure themselves. Healthcare centers like Sutter Healthcare are progressing and working on how to provide healthcare services to those who cannot afford ...

Abstract

In healthcare financial management, health insurance contributes in determining the healthcare services. The fee schedule provides a list of charges reimbursed for service providers and suppliers. Center for Medicare services, CMS, uses the fee schedule to determine the facilities and non-facility in healthcare provisions. Physicians, ambulance and medical equipment services among others help in the determination of the fee schedule by Medicare Physician Fee Structure (MPFS). The study focuses on CPT code 99214-office visit as the reference in the service delivery by the center of Medicare services. The Medicare and Medicaid rates are essential in determination the fee schedule. ...

Milestone I

Apple Inc. was founded on April 1, 1976, which makes it 40 years old. There is something to say about a company that has been around for that long; they must be doing something right. There were three different kinds of computers starting with the Apple I, Apple II and the Macintosh. The Apple I had a typewriter like keyboard with the ability to connect to the TV for the screen. These were all built by hand. The Apple II arrived in April, 1977 and with this came color graphics and a tape based machine. Then in 1984 Macintosh ...

QUESTION 1

Adjusted Trial Balance Statement of Comprehensive Income Balance Sheet QUESTION 2 Financial ratios Financial analysis Analysis of liquidity Current ratio At the of the financial year 2015, the current ratio for British Airways was 0.5965 indicating that its current assets could pay off 59.65% of its short-term liabilities. This further shows that the company had a low liquidity since its current assets were insufficient to meet the short-term obligations (Gibson, 2012, p. 243). The ratio declined from 0.6512 in 2014 and 0.6300 in 2013. The trend shows that the liquidity of British Airways improved in 2014 but declined in ...

About the report

The objective of this report is to assist One-World Investment Consortium, who is planning to invest £150 million in Thomas Cook PLC, a British global travel company listed on the London Stock Exchange under the ticker sign of ‘TCG’. We duly understand the impact of our professional recommendation on Consortium’s final decision making related to investment, and therefore, we intend to be comprehensive in the approach our analysis. As for the structure of this report, it will be a two-part report. In the first section of the report, we will evaluate the past 5 year(2007-2011) financial performance ...

Significance of Accounts Receivable Practice

The most primary element for the success of a business is the way in which the systems of accounts receivable management, collections and billing are maintained. Often, this type of management collectively is known as the system of collections management. The main key to the success of this system is to manage it diligently. It is because having large amount of customers is not enough to run a successful business; revenue needs to be collected from these customers (Clarke, 2016). There are a number of reasons for a business setting up the accounts receivable in a given organization. When ...

Introduction

This paper seeks to conduct an in-depth financial analysis for the hypothetical entity Horniman Horticulture with a specific focus on highlighting the overall financial health and performance of the business over the period between 2002 and 2005. The analysis will be centered on selected ratio analyses, increasing and decreasing financial situations over the periods and situation analysis. Over the period under review, the financial performance of the business has exhibited various trends evidenced by the results reported for each year. For instance, the total annual revenues for the business have gradually increased over the four-year period from $ 788,500 ...

Ganesan (2007, p.1) defined working capital management as a company’s best strategy for its continued sustainability since it uses short-term financing strategies to fund everyday operations (Ajibolade and Sankay, 2013, p.233). The pecking order theory believes that internal financing is the best alternative but it can result to conflicts between corporate liquidity and profitability (Ajibolade and Sankay, 2013, p.234). The reason for this is that the company’s internal funding may not be enough to fund the period between the purchase of inventories or raw materials until the collection of receivables (Gill, Biger, and Mathur, 2010, p.1). Having ...

Ford Motor Company is one of the leading automakers that is based in the USA. The company was founded by Henry Ford. Henry Ford made his first automobile in 1896 using four bicycle wheels and a four-horsepower. The gearbox of the car has only two gears; both forward gears and no reverse gear. He horned his skills for making vehicles over the years. In 1901, he developed a 26-horsepower racecar that become victorious. After that, he decided to develop his own automobile company in 1903. Ford Motors was incorporated in 1903 with only 12 shareholders who had 1,000 ...

Introduction to PepsiCo Incorporated

PepsiCo is an American multinational company having its origin in the United States. The company is a market leader in the global beverage industry. The biggest and worldwide competitor to PepsiCo is the Coca-Cola Company. PepsiCo serves the worldwide market and gain access to audience by mainly sponsoring sports events, players and teams.

Pro-Forma Financial Statements of PepsiCo Incorporated for 2016 (the next period)

This section is aimed at displaying the financial statements of PepsiCo for the next financial accounting period (2016) as well as the last statements for 2015. The pro-forma income statement and balance sheet are prepared by assuming a ten percent increase in sales revenue and cost ...

IFRS and US GAAP: Similarities and Differences (Financial Assets)

IFRS and US GAAP: Similarities and Differences (Financial Assets)

Introduction

The US GAAP (Generally Accepted Accounting Principles) is a set of accounting standards followed in the United States. With the emergence of internationalization, cross border flow of capital, people, cultures, and ideas became very common and the situation in turn contributed to the rapid growth of multinational corporations. Since different countries followed different accounting standards earlier, it was very difficult for MNCs to record their financial/accounting transactions in a unified manner. It persuaded regulators and businesses worldwide to think of a globally recognizable accounting standard leading to the development of ...

Option 1

Part 1 The company selected for the assignment is Teledyne Technologies. Chart below shows the information regarding the company: The audit report of Teledyne Technologies Inc. for the year ended January 3, 2016 carried an unqualified opinion. The report stated that the consolidated statement of income, comprehensive income, cash flows, and stockholder’s equity for the year then ended presented fairly, in all material respects, the financial position of the company and were in conformity with Generally Accepted Accounting Principles of United States of America. The company’s internal control for the year ended January 3, 2016 were also ...

2.6. Financial Analysis AP Moller Maersk is one of the renowned company in its industry and has been known to provide sustainable returns to the investors. However, the main aim of the financial analysis is not only to provide analysis relating to the company’s profitability, but also to provide an exploratory analysis and evaluation of the performance of APMM. More specifically, the analysis is based on four key qualities affecting the market value of a business, assessed by using traditional financial indicators. The analysis evaluates performance of APMM in liquidity, profitability, leverage and activity over the past 5 ...

Organization Performance Using Financial Ratios

Organization Performance Using Financial Ratios Ratio analysis refers to the process of determining, analysing and interpreting relationships by using financial statements. It is majorly used to evaluate various aspects of a firm’s financial and operating performance, such as profitability, liquidity, efficiency and solvency. The trend is then studied to determine whether they are deteriorating or improving (Nezlobin, Rajan, & Reichelstein, 2014). Financial ratio is an indicator used to analyse firm’s financial performance. The ratios are used by the creditors, accountants, analysts, shareholders and bankers to examine and evaluate data presented on a company’s financial statements (Nezlobin, Rajan, & ...

The credit policy of a business should be customer friendly and should provide adequate time to the customer for the payment for purchase or service. To successfully manage credit, a company needs to place importance on new customers and not only focus on the old customers. It will be important to reach out to new customers who will increase their reach as well as revenue, credit management enables the company to improve on their policies and regularize the cycle of receivables. The most important part about credit management is the collection and unpaid collection. A company needs to maintain ...

Working Capital Guarantee Program

Working Capital Guarantee Program allows the exporters to unlock or overcome any working capital hindrance before the shipment of their consignment. Important to note, while the entire program is operated by the commercial lenders, it is backed by Export-Import Bank’s guarantee. This business friendly program allows the exporters to purchase raw materials, suppliers or equipment to fulfill the export orders committed by them. In addition, the funds obtained can be used for positing bids and performance bonds. Many commercial banks have now expanded the authorized channelizing of the funds obtained under the program for the issuance of standy ...

John Sunna

IFRS and GAAP are two most commonly used accounting standards. The differences between them complicate the comparability of financial statements of different companies. The accounting bodies understand the necessity of convergence of the two standards. Thus, the International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) work on several joint projects to facilitate this process. This paper addresses the differences and similarities between IFRS and GAAP as regards accounting for financial instruments, long-term assets, and liabilities. IFRS 8-1: What are some steps taken by both the FASB and IASB to move to fair value measurement for financial ...

Cash is different from profits, but it is blood of the business. It is necessary to maintain cash as one can run business without profits but not without cash. Profits do not indicate the cash. It is key for any business to have cash by selling the products and services. In relation to depreciation, straight line method is used for the buildings and even for the equipment. However, government frequently changes the formula of depreciation as one of the formulae is 2x. Another formula is known as one and one-half times the declining balance. The businesses can use either ...

A Pharmaceutical Corporation expects to have several current notes receivables after the end of this financial period. In spite of the company’s certainty to collect the notes receivables, the transaction may be delayed by one more accounting year. Due to this prospect, the controller is compelled to re-categorize the notes receivables as non-current. Besides, the corporation’s accountant acknowledges the delay of the collection, but she does not favor the idea of re-classification since it will lead to a drastic decrease of the current ratio from 2.5:2 to 9:2. This reduction in current ratio will have negative consequences ...

Introduction

A.P Eagers ltd is a retail group trading in automotives and her main operations are based in South- East Queensland, Adelaide, Darwin, Melbourne, Sydney and the Hunter Valley in Newcastle. The business operations are centered on the ownership and operation of motor vehicle dealerships. These dealerships are concerned with a range of services that include sale of new and pre owned vehicles, service, spare parts, and customer financing facilitation. This paper seeks to conduct an objective financial analysis (trend and ratio analyses) based on the audited financial reports of the entity for the four year period between 2011 and ...

Executive Summary

The world experienced one of its worst recession which commenced in late 2007. One of the issues that emerged was criticism on the then accounting standards which prompted standard setters to respond. The G20 countries recommended the formation of financial crises advisory committee which developed various recommendations that led to the improvement of specific International financial reporting standards namely IFRS 10, 11, 7 and 9. Also, the recommendation led to the development of IFRS 12. These development were the key responses by the standard setters which are reviewed to demonstrate how they positively impacted the financial statements

Introduction

Towards the ...

In the current century, the accounting and finance field have witnessed increased efforts to converge accounting standards to globally accepted universal standards. The fact owes to the dire need of increasing comparability of the financial statements of different firms in the various countries. Undoubtedly, there exist key areas of departure in different accounting standards applied in different countries. Of more interest, is the difference that exists between the two dominant accounting systems used by various corporations around the globe. That is the U.S. Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). It is, however, worth ...

Question 1

Within an organisation, accounting plays an active role to ensure that all business transactions of monetary value are classified, recorded, measured, summarised and reported in an accurate manner by adhering strictly to basic reporting rules such as International Financial Reporting Standards (IFRS) or US GAAP. Accounting rules make sure that financial statements are prepared and reported accurately by complying strictly with all reporting principles. Additionally, accounting steps confirm that all financial information is included in reporting mechanism while financial statements contain no error or any material misstatement having huge financial consequences. When the industry follows one accounting mechanism, it ...

BUSINESS FINANCING

Introduction Business owners and managers seeking financing encounters an essential decision regarding choice of whether to borrow money or to make use new equity capital. Given that equity and debts have very varied characteristics, each of them has different effect on cash-flow, earnings, and taxes as well as on balance sheet. They also have different impacts on any company`s dilution, leverage as well as a host for other financial metrics by which companies are measured. Lastly, each business financing options presents a different kind of relationship in relation to the financing source. Thus, a company`s plan on ...

Introduction

This paper explores the costing and pricing methods applicable to firms in the tourism and travel sector using Allegiant Travel Company as an example. Allegiant Travel Company is an American company providing leisure travel products and services to under-served cities in the US. It provides air transport, air transport-related products, travel protection products, hotel rooms and other third party travel products. The paper also analyses the financial statements to assess its financial state.

Costing methods

Several costing methods can be applied in the tourism industry depending on the nature of the assignment and the operations of the organization. Applicable costing methods ...

Q1. Accounting standards play a significant role in the financial statements preparation process. The main international standard-setting organization is the International Accounting Standards Board (IASB) headquartered in London. It issues International Financial Reporting Standards (IFRS) which are used in more than 115 countries and is gaining acceptance in other states as well. These standards are also used on most foreign exchanges. Moreover, the IASB also issues framework for financial reporting and international financial reporting interpretations. Besides, the International Organization of Securities Commissions (IOSCO) also plays a significant role in the international standard-setting process. It doesn’t develop accounting standards, ...

In health care, accounts receivables represent due payments from patients for services offered and payments due from insurance companies (Ferenc 169). The accounts receivables constitute the largest part of hospitals current assets in a balance sheet (Ferenc 169). Hospitals employ resources that cost money in offering services to patients hence they require an adequate cash flow. Patient statements and claim forms are prepared for billing after patients have received medical services. Managing the accounts receivables in a hospital requires an effective system that captures all the events in the accounts receivables’ cycle (Ferenc 172). The cycle begins with the ...

The Souk Al-Manakh was a classic financial bubble that comprised of investors from around the oil-rich Persian Gulf, and it exploded after confidence in the system was affected. In August 1982, Investors’ checks were reported to bounce and the stock market exchange buckled within a month. The Kuwaiti Ministry of Finance demanded the clearance of all postdated checks by Banks to speed the close down of the stock exchange. The Kuwaiti government conveyed a clearinghouse company that tried to solve disputes and other plights of the investors and brokers (Al-Deera Holding). The arbitration panel was expected to address all ...

Corporate decision makers and governments have subscribed to the view that cashflow is a reliable indicator of a firm’s health.usually, cash flows are pragmatic yardsticks. One need not look into other sources of information, but in the level of cash coming in versus the amount of cash being spent, to determine the feasibility of a business. However, Gentry says that cashflows, particularly operating cash flows are not as reliable as they seem to be. Taking off from a study done by Casey and Bartzack, it has been found that operating cashflows do not provide significant information on the ...

Introduction

The performance of the business is critical for the investors as well as stakeholders. The discipline of corporate finance offers a variety of the techniques for reviewing the financial performance of the business. In the modern competitive world, a financial performance of the business is not enough for the success. Instead, it is critical to have success in multiple dimensions that ensures sustainability. The underlying report is a comparative assessment of the two brewing companies from UK FTSE 250 listing from the Travel & Leisure sectors and Restaurants & Bars subsectors.

Introduction of Greene King Plc and the Marston’s PLC

The selected companies include Greene King Plc and the Marston’ ...

Liquidity Ratios

These are ratios that help accompany to meet its short term maturity obligations. They are arbitrary measures that are used to verify a company’s capability to settle off short-term debts responsibilities. They basically measure the ability of the company to meet its near-term obligations. Current ratio and acid test ratio are example of liquidity ratio measures.

Current ratio

Current ratio is a liquidity measure that shows the rate at which a company is able to meet its short- term liabilities using its current assets. It indicates the capability of a company to meets its short term liabilities with its current assets. Companies with current ...

Introduction

Financial instrument can be defined as any form of contract leading to a financial asset rise on one entity and a subsequent financial liability on another entity or an equity instrument. Financial assets means things like cash, other entities equity instruments, contractual rights to obtain cash or other form of financial asset of other entities, and rights for exchanging financial assets or liabilities with favorable conditions for the entity. On the other hand, financial liabilities involve things like contractual obligation to send cash or other financial assets to other entities, and under the obligation for exchanging financial assets under unfavorable terms ...

Eli Lilly pharmaceutical company

This pharmaceutical company was initiated by Eli Lilly in the year1876. The company is at the present the 10th biggest pharmaceutical corporation all over the globe (Reepmeyer, 2006). The company has persistently remained self-regulating and autonomous, but not remote. Across the world, Eli Lilly has developed prolific coalitions and partnerships that progress the company’s capacity to come up with ground-breaking medicines at lower prices. The company has constantly been categorized as one of the best corporations to work for in the globe, and generations of Lilly workers have maintained a culture that values fineness, honesty, and reverence for people.

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