You have just been appointed as the financial controller of Sanchez & Gomez Limited, a privately owned entity operating in the fashion wholesale business. You have been asked to attend the forthcoming monthly management meeting and report on aspects of the entity’s financial position. You are aware that during the previous financial year the management team has been concerned about the liquidity of the company, and its working capital management. The following information is available from the management accounts for the year ended 30 December 2015:       6 months to 30 june 2014  "000" 6 months to 30 Dec 2014 “000”     Inventories at period end  1050 550  Receivables at period end  1100 950  Cash and cash equivalents at period end   ------  150  Trade payables at period end  1400 800  Short term borrowings at period end  250  --------   Revenue for the period  2250 2000  Cost of sales for the period  1500 1300 Prepare a brief report that analyses the working capital and liquidity position of Sanchez & Gomez limited. Include the calculations for the relevant ratios, in your report.

Picasso Company is a wholesale distributor of packaging equipment and supplies. The company's sales have averaged about $900,000 annually for the 3-year period 2023-2025. The firm's total assets at the end of 2025 amounted to $850,000. The president of Picasso Company has asked the controller to prepare a report that summarizes the financial aspects of the company's operations for the past 3 years. This report will be presented to the board of directors at their next meeting. In addition to comparative financial statements, the controller has decided to present a number of relevant financial ratios which can assist in the identification and interpretation of trends. At the request of the controller, the accounting staff has calculated the following ratios for the 3-year period 2023-2025. Current ratio Acid-test (quick) ratio Accounts receivable turnover Inventory turnover Debts to assets ratio Long-term debt to assets ratio Sales to fixed assets (fixed asset turnover) Sales as a…

Create journal entries for each of the following transactions   The company issues capital stock for $90,000. The company borrows $40,000 from the bank. The company pays its rent for one year in advance, $18,000. The company buys inventory for $30,000 on account. The company sells inventory costing $20,000 for $40,000 on account. The company pays its employees $1,000 for services rendered. The company buys inventory for $50,000 cash. The company sells inventory costing $40,000 for $80,000 cash. The company collects $20,000 from customers on account. The company pays $25,000 on account. One month of rent has expired. Dividends of $2,000 are paid.

On November 1 of the current year, Rob Elliot invested $30,500.00 of his cash to form a corporation, GGE Enterprises Inc., in exchange for shares of common stock. No other common stock was issued during November or December. After a very successful first month of operations, the retained earnings as of November 30 were reported at $5,000.00. After all transactions have been entered into the accounting equation for the month of December, the ending balances for selected items on December 31 follow. On that date, the financial statements were prepared. The balance sheet reported total assets of $54,400.00 and total stockholders' equity of $38,955.00.   6. What is the amount of profit or loss during December? 7. What were the total expenses for December? 8. How much was paid for rent?

Charles Wilson, the CFO of Sunland Automotive, Inc., is putting together this year's financial statements. He has gathered the following balance sheet information: The firm had a cash balance of $23,700, accounts payable of $163,900, common stock of $313,900, retained earnings of $512,900, inventory of $213,100, goodwill and other assets equal to $79,400, net plant and equipment of $711,900, and short-term notes payable of $21,800. It also had accounts receivable of $141,900 and other current assets of $11.900. How much long-term debt does Sunland Automotive have?

A colleague of yours has been reviewing the second-quarter income statements for a number of companies and is questioning a number of the expense items included in the statements. For each of the following independent questions, provide a written response to your colleague’s questions.1. A footnote accompanying Company A’s second-quarter income statement states that $360,000 was expended on research and development during the quarter on activities that should benefit operations over the next 24 months. Why does the second quarter reflect an expense of $120,000 rather than $15,000?2. Company B reported pretax income in both the first and second quarters, and the statutory tax rate during those periods and for the balance of the year is 30%. Assume that there were no net operating losses in prior years for tax purposes. However, both of the quarters reported an effective tax rate of less than 30%. What could possibly explain this?3. Assume the same facts as in part (2) except that the…