1. How do banks, creditors, investors, key employees, customers, and the SEC each look at the statement of cash flows for a company, and what is each stakeholder group concerned about.

2.The statement of cash flows in essence shows accrual basis financial statements, except converted to cash basis. This this statement true or false? Why or why not?

3.What is the difference between the statement of cash flows, and the free cash flow concept?

A company is considering additional final inspection costs of $1 per unit before delivery to customers. The additional inspection should reduce the defective rate from 3 percent to 1 percent. If a defective unit is found, it is scrapped at no additional cost. The manufacturing costs before the final inspection are $200 per unit. The management believes that the external failure costs are $40 per defective unit.

Required:

Should the management incur the additional inspection costs?

You have to Considered own example of your new company. On the basis of this prepare below points

1. Write a short description (2-3 sentences) of your new company. What industry is it in? What do you offer customers or clients?
2. Create 10 transactions and their corresponding journal entries for the month of September 2020.
   1. These transactions must affect: Assets, Liabilities, Owner’s Capital, Owner’s Drawings, Revenues and Expenses
3. Post the journal entries into a ledger or into T-accounts.
4. Prepare a trial balance.
5. Create 3 adjusting entries.
6. Prepare an adjusted trial balance.
7. Prepare an Income Statement, Owner’s Equity Statement and Balance Sheet.
8. Journalize your 4 closing entries.
9. Prepare a post-closing trial balance

Analyzing Abu Dhabi stock Exchange Markets (ADX) and Dubai Financial Market (DFM) The Project problem:

1. Analyze the Abu Dhabi stock Markets and Dubai Financial Market by describing the nature and the development of these two Financial markets in details.

2. Explain the difference between types of financial markets used in UAE, and how these differences are used for trading securities and the types of securities traded on those markets.

3.   Evaluate the advantages and disadvantages of long-term capital market for rising corporate finance.

The “Cash for Clunkers” program was one of the most talked about sales promotions of recent memory. As part of the government’s $3 billion effort to jumpstart sales at slumping auto dealerships, owners of old gas-guzzling vehicles received a $4,500 rebate if they traded in their “clunkers” for new fuel-efficient vehicles. Research the Cash for Clunkers sales promotion and have an in-class debate on what impact, if any, the stimulus program had on short- and long-term auto sales. Debate the environmental benefits of the program.

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $175 in either case.

Using the above information, determine which location would produce the greater profit. (Omit the "$" sign in your response.)

(Click to select)Kansas CityOmaha would produce the greater gross profit of $ .

USM sells products it manufactures in the United States to unrelated foreign and U.S. customers who agree in a written installment debt obligation to pay the purchase price in installments over a period of 5 years. USM sells the installment obligations to Matterhorn for less than the unpaid principal balance on the obligations. Matterhorn either collects the obligations at maturity at face value or sells them to an unrelated party for more than it paid USM for them but less than their face value.

(a) What are the tax consequences of these transactions under Internal Revenue Code Sections 864(d), 951(a)(1)(A) and 954(c)?

(b) Would the result change in part (a) if Matterhorn loaned the funds directly to the unrelated foreign customers who used them to buy the products from USM for cash?

George Jetson owns and operates a restaurant and catering business which has seen the business show an increase in revenue over the last 6 months. With an increase in revenues George realized the expenses would also increase, but expected to see an increase in the cash position of the business. In reviewing the cash position and bank account, he has realized there has been a decrease in the cash position. The business receives cash and credit cards at the restaurant and also extends credit to customers for the catering business.

1. Explain the internal controls George needs to have in place for the receipt of both cash and credit cards for the restaurant.
2. Explain the issues involved with extending credit to customers in regards to both trade receivables and notes receivables.
3. Select and defend one of the methods to handle the write-off of bad debt.

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.

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.

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

B.) 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…

C.) Compute the additional investment in Accounts Receivable

D.) Compute the incremental Return on New Investment

E.) 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).

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

B.) 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?

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