Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Question
Chapter 15, Problem 3MAD
a.
To determine
Determine the
b.
To determine
Compute the ratio of free cash flow to sales.
c.
To determine
Identify whether the free cash flow information indicate financial stress.
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In its first year of operations, Cloudbox has credit sales of $200,000. Its year-end balance in accounts receivable is
$10,000, and the company estimates that $1,500 of its accounts receivable is uncollectible.
a. Prepare the year-end adjusting entry to estimate bad debts expense.
b. Prepare the current assets section of Cloudbox's classified balance sheet assuming Inventory is $22,000, Cash is
$14,000, and Prepaid Rent is $3,000. Note: The company reports Accounts receivable, net on the balance sheet.
Barga Company's net sales for Year 1 and Year 2 are $663,000 and $749,000, respectively. Its year-end balances of accounts
receivable follow: Year 1, $61,000; and Year 2, $98,000.
a. Complete the below table to calculate the days' sales uncollected at the end of each year.
b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?
Complete this question by entering your answers in the tabs below.
Required A Required B
Complete the below table to calculate the days' sales uncollected at the end of each year.
Note: Do not round intermediate calculations. Round your "Days' Sales Uncollected" answers to 1 decimal place.
Year 1:
Year 2:
Choose Numerator:
Accounts receivable
$
$
Days' Sales Uncollected
1 Choose Denominator: X
/Net sales
X
61,000 x
98,000 x
663,000/ $
749,000/ $
Barga Company's net sales for Year 1 and Year 2 are $668,000 and $748,000, respectively its year-end balances of accounts
receivable follow. Year 1, $60,000; and Year 2, $96,000.
a. Complete the below table to calculate the days' sales uncollected at the end of each year.
b. Did days' sales uncollected improve or worsen in Year 2 versus Year 1?
Chapter 15 Solutions
Managerial Accounting
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Fully depreciated equipment costing 50,000 was...Ch. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - Prob. 1BECh. 15 - Prob. 2BECh. 15 - Prob. 3BECh. 15 - Prob. 4BECh. 15 - Land transactions on the statement of cash flows...Ch. 15 - Prob. 6BECh. 15 - Prob. 7BECh. 15 - Prob. 8BECh. 15 - Prob. 9BECh. 15 - Prob. 1ECh. 15 - Effect of transactions on cash flows State the...Ch. 15 - Prob. 3ECh. 15 - Prob. 4ECh. 15 - Cash flows from operating activitiesindirect...Ch. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Reporting changes in equipment on statement of...Ch. 15 - Reporting changes in equipment on statement of...Ch. 15 - Prob. 10ECh. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Prob. 14ECh. 15 - Prob. 15ECh. 15 - Prob. 16ECh. 15 - Statement of cash flowsindirect method The...Ch. 15 - Prob. 18ECh. 15 - Prob. 19ECh. 15 - Prob. 20ECh. 15 - Prob. 21ECh. 15 - Prob. 22ECh. 15 - Prob. 1PACh. 15 - Statement of cash flowsindirect method The...Ch. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Prob. 1PBCh. 15 - Prob. 2PBCh. 15 - Prob. 3PBCh. 15 - Statement of cash flowsdirect method The...Ch. 15 - Statement of cash flowsdirect method applied to PR...Ch. 15 - Prob. 1MADCh. 15 - Prob. 2MADCh. 15 - Prob. 3MADCh. 15 - Prob. 4MADCh. 15 - Prob. 5MADCh. 15 - Prob. 1TIFCh. 15 - Financial condition Tidewater Inc., a retailer,...Ch. 15 - Prob. 4TIF
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