Questions
Pepsi Last year Days Sales Outstanding (A/R period) 41.59 Days Inventory (Inventory Period) 41.93 Payables Period...

Pepsi

Last year

Days Sales Outstanding (A/R period)

41.59

Days Inventory (Inventory Period)

41.93

Payables Period (A/P period)

154.33

  1. Using this information, compute the Cash Cycle for this company.

Cash Cycle = Days Sales Outstanding + Days Inventory – Payables Period

Questions

  • What is the length of this company’s cash cycle? (Show us your work!)
  • What information does this give you about the company’s need for cash?
  • Do you feel that this company must seek out short-term financing? Please explain your response.
  • Discuss whether Martin and Samantha should be concerned about their company’s cash cycle of 73 days.

In: Finance

We when run a hypothesis test, we are looking to verify a claim about a population...

We when run a hypothesis test, we are looking to verify a claim about a population parameter. Why is it important that we have a statistical tool to allow us to do this? For example, suppose that you were the quality control officer for a CPU manufacturer. Your job is to ensure that the CPUs your company makes meet certain performance standards so that when they are installed in iPhones they function properly and the phone company can truthfully claim that its phone will perform in certain ways. What would you do to verify that your CPUs were meeting both industry standards as well as the expectations of those companies that will purchase them for use in their products?

In: Statistics and Probability

Hirsch Company acquired equipment at the beginning of 2017 at a cost of $124,300. The equipment...

Hirsch Company acquired equipment at the beginning of 2017 at a cost of $124,300. The equipment has a five-year life with no expected salvage value and is depreciated on a straight-line basis. At December 31, 2017, Hirsch compiled the following information related to this equipment:                    Expected future cash flows from use of the equipment    $    106,400       Present value of expected future cash flows from use of the equipment        90,700       Fair value (selling price less costs to dispose)        86,350           Assume that a U.S.–based company is issuing securities to foreign investors who require financial statements prepared in accordance with IFRS. Thus, adjustments to convert from U.S. GAAP to IFRS must be made. Ignore income taxes.     Required:      Prepare journal entries for this equipment for the years ending December 31, 2017, and December 31, 2018, under (1) U.S. GAAP and (2) IFRS.      Prepare the entry(ies) that Hirsch would make on the December 31, 2017, and December 31, 2018, conversion worksheets to convert U.S. GAAP balances to IFRS. Ignore the possibility of any additional impairment at the end of 2018.

In: Accounting

Choose a well-known reputable public relations company:- 1- Write a short background information about it 2-...

Choose a well-known reputable public relations company:-

1- Write a short background information about it
2- write about its basic structure
3- who are their popular clients
4- write examples of the successful stories
5- give a personal feedback about the company

In: Operations Management

The following transactions apply to Jova Company for Year 1, the first year of operation: Issued...

The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $16,000 of common stock for cash. Recognized $64,000 of service revenue earned on account. Collected $57,200 from accounts receivable. Paid operating expenses of $36,200. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for Year 2: Recognized $71,500 of service revenue on account. Collected $65,200 from accounts receivable. Determined that $880 of the accounts receivable were uncollectible and wrote them off. Collected $100 of an account that had previously been written off. Paid $48,300 cash for operating expenses. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1.0 percent of sales on account. Required Complete the following requirements for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2. d-1. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Year 1.

In: Accounting

As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 470,000 shares for...

As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 470,000 shares for $550,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $320,000 and distributed cash dividends of 20 cents per share. At year-end, the fair value of the shares is $582,000.

1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.

Record any necessary year-end adjusting journal entry when the fair value of the shares held are $582,000 at year-end.

Help me with the name for the credit part. The correct answer is

Dr. Fair value adjustment 320,000

Cr, ? ( unrealized holding gain or loss - OCI is incorrect)   320,000

2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year.

  • Record the cash dividend of 20 cents per share.

Help me with the name for the credit part. The correct answer is

Dr. Cash 18,800

Cr, ? ( Dividend revenue and interest revenue is incorrect)   18,800

In: Accounting

a.)On December 31, 2019, the Notes Receivable account at P. Davis Materials Corporation had a balance...

a.)On December 31, 2019, the Notes Receivable account at P. Davis Materials Corporation had a balance of $12,000, which represented a six-month, 12 percent note received from a customer on October 1.

b. ) During the week ended June 7, 2019, McCormick Media received $32,000 from customers for subscriptions to its magazine Modern Business. On December 31, 2019, an analysis of the Unearned Subscription Revenue account showed that half of the subscriptions were earned in 2019.

C.) On November 1, 2019, Perez Realty Company rented a commercial building to a new tenant and received $43,200 in advance to cover the rent for six months. Upon receipt, the $43,200 was recorded in the Unearned Rent account.

D.) On November 1, 2019, the Mighty Bucks Hockey Club sold season tickets for 40 home games, receiving $3,200,000. Upon receipt, the $3,200,000 was recorded in the Unearned Season Tickets Income account. At December 31, 2019, the Mighty Bucks Hockey Club had played 5 home games.

  For each of the above independent situations, indicate the adjusting entry that must be made on the December 31, 2019, worksheet assuming no previous adjusting entries have been made during the year

In: Accounting

On a rainy afternoon two years ago, John Smiley left work early to attend a family birthday party

On a rainy afternoon two years ago, John Smiley left work early to attend a family birthday party. Eleven minutes later, a careening truck slammed into his SUV on the freeway causing John to spend two months in a coma. Now he can’t hold a job or make everyday decisions and is in need of constant care. Last week, the 40-year-old Smiley won an out-of-court settlement from the truck driver’s company. He was awarded payment for all medical costs and attorney fees, plus a lump-sum settlement of $2,330,716. At the time of the accident, John was president of his family’s business and earned approximately $200,000 per year. He had anticipated working 25 more years before retirement.8 John’s sister, Sara, an acquaintance of yours from college, has asked you to explain to her how the attorneys came up with the settlement amount. “They said it was based on his lost future income and a 7% rate of some kind,” she explained. “But it was all ‘legal-speak’ to me.” 

 

Required: 

Construct the text of an e-mail to Sara describing how the amount of the lump-sum settlement was determined. Include a calculation that might help Sara and John understand.

In: Accounting

The following transactions apply to Jova Company for Year 1, the first year of operation: Issued...

The following transactions apply to Jova Company for Year 1, the first year of operation:

Issued $15,500 of common stock for cash.

Recognized $64,500 of service revenue earned on account.

Collected $57,600 from accounts receivable.

Paid operating expenses of $36,000.

Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account.

The following transactions apply to Jova for Year 2:

Recognized $72,000 of service revenue on account.

Collected $65,600 from accounts receivable.

Determined that $890 of the accounts receivable were uncollectible and wrote them off.

Collected $300 of an account that had previously been written off.

Paid $48,400 cash for operating expenses.

Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1 percent of sales on account.

Required Complete the following requirements for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2. d-1.

Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Year 1.

In: Accounting

A Ford Motor Co. coupon bond has a coupon rate of 6.5%, and pays annual coupons....

A Ford Motor Co. coupon bond has a coupon rate of 6.5%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 22 years from tomorrow. The yield on the bond issue us 6.3%. At what price should this bond trade today, assuming a face value of $1,000?

In: Finance