Question
In: Finance
The following is a portion of the current asset section of the balance sheets of HiROE...
|
The following is a portion of the current asset section of the balance sheets of HiROE Co., at December 31, 2014 and 2013: |
| December 31, 2014 | December 31, 2013 | |
|
Accounts receivable, less allowance for
uncollectible accounts of $8,000 and $3,900, respectively |
150,900 | 130,500 |
| equired: | |||||||||||||||||||||||||||||||||||
| a. |
If bad debts expense for 2014 totaled $10,200, what was the amount of accounts receivable written off during the year? (Hint: Use the T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.) What is the accounts recievable written off?
|
||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||
Solutions
Expert Solution
| Req 1. | ||||||||
| Allowance for uncollectible accounts | ||||||||
| Accounts receivable | 6,100 | Balance | 3,900 | |||||
| (balancing figure) | Bad debt expense | 10200 | ||||||
| Balance | 8000 | |||||||
| Amount written off: 6100 | ||||||||
| Req b-1 | ||||||||
| Answer is No effect on Working capital | ||||||||
| Req b-2 | ||||||||
| Answer is No effect on Net income and ROI | ||||||||
| Note: With the amount written off, net Accounts receivable remain same. | ||||||||
| Hence, no effect on working capital, net income and hence no effect on ROI | ||||||||
| Req c | ||||||||
| Answer is TRUE. | ||||||||
| This is Probable that the sales would have beem higher as the level of accounts receivable and allowance has been increased | ||||||||
| Req d-1 | ||||||||
| 2013 | 2014 | |||||||
| Net Accounts receivable | 130500 | 150900 | ||||||
| Add: Allowance | 3900 | 8000 | ||||||
| Gross Accounts receivable | 134400 | 158900 | ||||||
| Allowance for uncollectible | 3900 | 8000 | ||||||
| Divide: Gross Accounts receivable | 134400 | 158900 | ||||||
| % of Allowance for Gross AR | 2.90% | 5.04% | ||||||
jeff jeffy answered 1 year agoRelated Solutions
Use the following current asset and current liability section of Company X’s balance sheets at January...
Use the following current asset and current liability section
of Company X’s balance sheets at January 31, 2015 and 2014 (in
millions):
January 31, 2015
January 31, 2014
Current Assets
Cash
$5
$2
Accounts Receivable
3
6
Inventories
6
10
Total current assets
$14
$18
Current Liabilities
Note Payable
$3
$3
Accounts Payable
4
1
Other accrued liabilities
2
2
Total current liabilities
$9
$6
Calculate the working capital and current ratio at each balance
sheet date. Round your current...
Assume the following is the current asset section from Intuit’s balance sheet. July 31 ($ 000s)...
Assume the following is the current asset section from Intuit’s
balance sheet.
July 31 ($ 000s)
2016
2015
Cash and cash equivalents
$83,842
$125,992
Investments
910,416
991,971
Accounts receivable, net
86,125
81,615
Deferred income taxes
54,854
31,094
Prepaid expenses
99,275
62,792
Current assets of discontinued operations/td>
21,989
12,279
Funds held for payroll customers
357,838
323,041
Total current assets
1,614,339
1,528,784
Assume Intuit’s 2016 revenue was $2,038,000 thousand.
Compute days sales outstanding for 2016.
Select one:
a. 16.4 days
b. 29.9...
Below is the asset section of common-size balance sheets for Nike for a consecutive five-year period....
Below is the asset section of common-size balance sheets
for Nike for a consecutive five-year period.
NIKE (NKE) 2019
2018
2017
2016 2015
Current Assets
Cash and Equivalents 15.8% 10.5%
9.4%
8.9% 5.2%
Receivables 25.7% 26.9%
31.3% 28.0%
27.9%
Inventories 20.6% 20.7%
22.6% 21.3%
24.5%
Other Current Assets 10.1% 11.8% 6.4% 6.2% 4.7%
Total Current Assets 72.2% 69.8%
69.7% 64.5%
62.3%
Non-Current Assets
P P & E, Net 18.3% 20.1% 24.1% 25.1% 27.8%
Intangibles ...
The 2014 and 2013 income statements and balance sheets (asset section only) for Target Corporation follow,...
The 2014 and 2013 income statements and balance sheets (asset
section only) for Target Corporation follow, along with its
footnote describing Target’s accounting for property and
equip-ment. Target’s cash flow statement for fiscal 2014 reported
capital expenditures of $1,786 million and disposal proceeds for
property and equipment of $95 million. No gain or loss was reported
on property and equipment disposals. In addition, Target acquired
property and equipment through non-cash acquisitions not reported
on the statement of cash flows.
Consolidated...
The current asset section of the Excalibur Tire Company's balance sheet consists of cash, marketable securities
The current asset section of the Excalibur Tire Company's balance sheet consists of cash, marketable securities, accounts receivable and inventories. The December 31, 2018, balance sheet revealed the following:
The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities,...
The current asset section of the Excalibur Tire Company’s
balance sheet consists of cash, marketable securities, accounts
receivable, and inventories. The December 31, 2018, balance sheet
revealed the following:
Inventories
$
990,000
Total assets
$
3,500,000
Current ratio
2.10
Acid-test ratio
1.20
Debt to equity ratio
1.8
Required:
Determine the following 2018 balance sheet items:
current assets and long term assets
The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities,...
The current asset section of the Excalibur Tire Company’s
balance sheet consists of cash, marketable securities, accounts
receivable, and inventory. The December 31, 2021, balance sheet
revealed the following:
Inventory
$
910,000
Total assets
$
3,000,000
Current ratio
2.60
Acid-test ratio
1.30
Debt to equity ratio
1.5
Required:
Determine the following 2021 balance sheet items:
current assets:
shareholders' equity:
long-term assets:
long-term liabilities:
please show work for better understanding
The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities,...
The current asset section of the Excalibur Tire Company’s
balance sheet consists of cash, marketable securities, accounts
receivable, and inventory. The December 31, 2021, balance sheet
revealed the following: Inventory $ 1,000,000 Total assets $
4,000,000 Current ratio 2.20 Acid-test ratio 1.40 Debt to equity
ratio 1.5 Determine the following 2021 balance sheet items:
a. Current Assets?
b. Shareholder's Equity?
c. Long-term assets?
d. Long-term liabilities?
A portion of the stockholders’ equity section from the balance sheet of Walland Corporation appears as...
A portion of the stockholders’ equity section from the balance
sheet of Walland Corporation appears as follows. Notice that the
company has two classes of preferred stock with different features,
in addition to common stock.
Stockholders' equity:
Preferred stock, 8% cumulative, $50 par, 40,000 shares
authorized, issued, and outstanding
$
2,000,000
Preferred stock, 12% noncumulative, $100 par, 8,000 shares
authorized, issued, and outstanding
800,000
Common stock, $5 par, 400,000 shares authorized, issued, and
outstanding
2,000,000
Total paid-in capital
$
4,800,000...
Where is the current portion of notes payable reported on the balance sheet?
Where is the current portion of notes payable reported on the balance sheet?
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Draw a DFA for the following ( ∑ = {0,1}): Set of all strings with.
- In the article from Forbes notes that the goal of a leader is not to clone...
- Many people keep time using a 24 hour clock (11 is 11am and 23 is 11pm,...
- UNIX ONLY -- DIFFICULT LAB ASSIGNMENT This is an extremely difficult subject for me. Could you...
- Do you know why your credit card can be refused even though you are profitable?
- The Following Java expression: S/10 * 10 + 10 – S = C Show that this...
- Year Cash Flow 0 −$9,700 1 5,800 2 2,500 3 3,400 &nb
ADVERTISEMENT