Current asset

A CC T1 0 0 6 CASE STUDY: TOPIC 4 - SOLUTION FINANCIAL ACCOUNTING 1 COURSE COORDINATORS: CHEE FEI CHANG PREPARED BY: SCOTT COPELAND FA 1 – PHUONG CASE STUDY: TOPIC 4 SOLUTION CASE STUDY 4 – ACQUISITION OF NON-CURRENT ASSETS AND ENTITIES At the end of his adventures in ADA Phuong had decided to purchase a new Standard Diesel Delivery Van. Phuong conservatively estimates the delivery van should provide him benefits for at least the next 5 years at which time he should be able to

3.Difference between non-current asset and current asset Non-current asset can be named as Fixed-asset as well. While current asset is named as non-fixed asset. Non-current asset generally consist of net property, plant and equipment intangible assets such as goodwill and other asset. (Business Analysis and Valuation: Text and Cases By Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard)For current asset, it is an asset that is likely to be realized in, or is intended for sale or consumption

INVENTORY – PERIODIC INVENTORY SYSTEM In a Periodic Inventory System, no effort is made to keep up – to – date records of either the inventory or the cost of goods sold. Instead, these amounts are determined only periodically __ usually at the end of each year. It is used by very small businesses having manual accounting systems. Questions 1 – 3 (Meigns & Meigns), Question 4 (Fess & Warren) Question 1:- Mach IV Audio uses periodic inventory system. One of the

collect receive cash from debtors for each credit sales. However, the days for receive cash had been increase due to its decrease of ratio to 7.1 where it took about 52 days (1/7.1 ×365 days=51.41 days) for them to collect cash from debtors for their current

The fact that Costco has one of the most efficient market supply chains in the world whereby it facilitates the movement of merchandise from the manufacturer to store shelves with the least amount of physical effort and labor is another reason that makes Costco so successful. As of 2016 Costco inventory turnover ratio sits at 12.94. Inventory turnover ratio for 2016: Sales / inventory; Costco Net sales for 2016 was $116,073,000 and inventory for 2016 was $8,969,000 which comes out $116,073,000 /

We noticed the following financial health indicators in our forecast: Clarkson Lumber's ratio of total assets to sales is moving from a position in line with high profit outlets to low profit outlets at 37.7%. This is due to accounts receivable increasing to 14% of sales which is higher than the 13.7% experienced by low profit ratios. Also, inventory as

The debt to equity ratio of Diamond Drillers, Inc, is 0.66times < the debt to equity ratio of industry averages is 1.07 times. The debt to equity ratio is a financial, liquidity ratio which compares total debt to total equity of an entity. It illustrates the percentage of entity financing that comes from creditors and investors. The debt to equity ratio of Diamond Drillers, Inc, is 0.66 times and industry averages is 1.07 times. So the debt to equity ratio of Diamond Drillers, Inc, is lower than

3. Kraft’s current ratio: Current assets / current liability 2007: 2500+3800+400 / 10700 = 0.63 2008: 2300+4000+800 / 6900 = 1.03 Kraft’s acid test ratio: Current assets – stock / current liability 2007: 3800+400 / 10700 = 0.39 2008: 4000+800 / 6900 = 0.69 If Kraft generate £1.4 billion of cash to buy Cadbury, Current ratio 2008:

Effect on Revenue An increase in revenue on a firm’s working capital can be a result of good management of a corporation’s strategic plan for measuring its assets and liabilities. Working capital represents a portion of a company’s investments that is used in the everyday business activities. For example managing the current assets represents about a 1/3 of the activities of the company and managing its liabilities represents ¼ of the companies’ activities. If Management adequately balances

Because the audit committee is representing the shareholders, and assist the external auditors to reduce the information asymmetry, as the agent for the shareholders towards management (agency principal). By hiring the audit committee and the external auditor, it will monitor the managements as shareholders agents, in order to minimise or to reduce the risk of management actions that harm shareholders interests. Furthermore, the ASX (ASIC 2015) stated that it is important to be independent, due to