Zillmann Company sells goods on credit and estimates bad debts as a percentage of Account receivable, the credit period is 30 days .The Company has three customers following are the details of the Receivables at Dec-31, 2017 from these customers and the respective date when sales were made.

Required:

1. Which approach of recording bad debts is used by company?
2. Prepare aging schedule for Zillmann Company on Dec-31, 2017 in the format given below.

Calculate the estimated amount of bad debt by applying the percentage given in the above table.

4. Record the bad debt expense on Dec-31, 2017, assume allowance for bad debts has a debit balance of

$ 15,000 at this date.

5.    Assume on Mar-15, 2018 Blair, declared bankrupt, Record this default in the books of Zilmann.
6.    Do you think Zilmann can use direct write off approach to record bad debts, Max two lines.

imagine a small business that you would like to open (Gym). Give a comprehensive overview of the opportunities and challenges facing the business. This might include (but not limited to) discussions of your business's customers, revenue sources, business model, competition, operating environment, marketing efforts, information technology, management structure, etc., etc. s. Be creative. Be concise.

Exercise 11-12

In 1993, Nash Company completed the construction of a building at a cost of $2,040,000 and first occupied it in January 1994. It was estimated that the building will have a useful life of 40 years and a salvage value of $59,200 at the end of that time.

Early in 2004, an addition to the building was constructed at a cost of $510,000. At that time, it was estimated that the remaining life of the building would be, as originally estimated, an additional 30 years, and that the addition would have a life of 30 years and a salvage value of $20,400.

In 2022, it is determined that the probable life of the building and addition will extend to the end of 2053, or 20 years beyond the original estimate.

A.) Using the straight-line method, compute the annual depreciation that would have been charged from 1994 through 2003.(Per year)

B.) Compute the annual depreciation that would have been charged from 2004 through 2022. (Per year)

C.) Prepare the entry, if necessary, to adjust the account balances because of the revision of the estimated life in 2021. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

D.) Compute the annual depreciation to be charged, beginning with 2022. (Round answer to 0 decimal places, e.g. 45,892.)

BUSI 320 Comprehensive Problem 2 Spring 2020 You have been asked to assess the expected financial impact of each of the following proposals to improve the profitability of credit sales made by your company. Each proposal is independent of the other. Answer all questions. Showing your work may earn you partial credit. Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks. Sales are projected to increase by $200,000 per year if credit is extended to these new customers. Of the new accounts receivable generated, 6% are projected to be uncollectible. Additional collection costs are projected to be 5% of incremental sales, and production and selling costs are projected to be 78% of sales. Your firm expects to pay a total of 30% of its income after expenses in taxes.

1) Compute the incremental income after taxes that would result from these projections:

2) Compute the incremental Return on Sales if these new credit customers are accepted: If the receivable turnover ratio is expected to be 5 to 1 and no other asset buildup is needed to serve the new customers…

3) Compute the additional investment in Accounts Receivable

4) Compute the incremental Return on New Investment

5) If your company requires a 20% Rate of Return on Investment for all proposals, do the numbers suggest that trade credit should be extended to these new customers? Explain.

Proposal #2 would establish local collection centers throughout the region to decrease the time it takes to convert credit payments that are mailed in by check to cash. It is estimated that establishing these collection centers would reduce the average collection time by 2 days (from 5 days to 3 days).

1) If the company currently averages $20,000 in collections per day, how many dollars will this suggested cash management system frees up?

2) If all freed up dollars would be used to pay down debt that has an interest rate of 8%, how much money could be saved each year in interest expense?

3) Do the numbers suggest that this new system should be implemented if its total annual cost is $5200? Explain.

Part 4: UNDERSTANDING THE FINANCIAL STATEMENTS OF BUSINESS CUSTOMERS

You are provided with the following financial ratios of Rob Unlimited:

Return on assets:   Income before interest and tax/total assets x 100/1 = 61.666666%

Gross profit ratio:   Gross profit/Principal revenue x 100/1    = 30%

Operating margin    Operating income/principal revenue x 100/1       = 12.333333%

Net income margin: Net income before taxation/ Principal revenue x 100/1     = 10.666667%

Turnover ratio of fixed assets: Principal revenue / fixed assets      = 15 times          

Turnover ratio of current assets: principal revenue/ current assets      = 7.5 times

Current ratio: current assets/current liabilities   = 3:1

Asked: Use the information from the ratios to complete the statement of financial position and statement of comprehensive income for Rob Unlimited.

Statement of financial position as at 28 February 20xx                                                        

Shareholder Interest

Ordinary share capital                  $500,000

General reserves                          $_______

Non-current liabilities

Long term loan                             $600,000

Current liabilities

Trade creditors                             $200,000

Other Short term loans                  $_______

Total                                               $______

Non-current assets

Vehicles and equipment                  $______

Current assets

cash                                             $150000

Debtors                                         $_______

stock                                             $600000

Total                                              $________

Statement of comprehensive income for the year ended 28 February 20xx

Principle revenue              $9000000

Inventory beginning of year                  $900000

Plus purchase                                        $______

Less Inventory end of year   $600000

Cost of goods sold $6300000

Gross income $_______

Operating expenses    $_______

Depreciation $90000

Net income before interest and taxation $1110000

Interest payments $_______

Net income before taxation    $_______

Determine the effect of the following errors on a company's total revenue, total expenses, and net income. Indicate the effect by selecting Overstated (too much), Understated (too little),or Not Affected.

Stevens Company presents the following information:

Current annual credit sales : $24,000,000

Collection period : 3 months

Terms : net/30

Rate of return : 18%

The company is considering offering a 4/10, net/30 discount. It anticipates that 30 percent of its customers will take advantage of the discount. The collection period is expected to decrease to 2 months. How much is the net advantage/disadvantage of the planned discount policy? Should the discount policy be implemented?

Filinvest Land vs. Court of Appeals (G.R. No. 138980, September 20, 2005)

case digest

Facts

issue

ruling (or how law applied)

Discuss the main findings from research on the Chore Wars —the gendered division of household labor—as studied by Hochschild (1989, 2003) and Zelizer (2005), in detail.