Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 15, Problem 3TIF
Financial condition
Tidewater Inc., a retailer, provided the following financial information for its most recent fiscal year:
The company’s “
An examination of the financial statements revealed the following additional information:
- Revenues increased during the year as a result of an aggressive marketing campaign aimed at increasing the number of new “Tidewater Card” credit card customers. This is the company’s branded credit card, which can only be used at Tidewater stores. The credit card balances are
accounts receivable on Tidewater’s balance sheet. - Some suppliers have made their merchandise available at a deep discount. As a result, the company purchased large quantities of these goods in an attempt to improve the company’s profitability.
- In recent years, the company has struggled to pay its accounts payable on time. The company has improved on this during the past year and is nearly caught up on overdue payables balances.
- The company reported net losses in each of the two prior years.
Write a brief memo to your instructor evaluating the financial condition of Tidewater Inc.
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Tidewater Inc., a retailer, provided the following financial information for its most recent fiscal year:
Please see the attachment for details:
An examination of the financial statements revealed the following additional information:• Revenues increased during the year as a result of an aggressive marketing campaign aimed at increasing the number of new “Tidewater Card” credit card customers. This is the company’s branded credit card, which can only be used at Tidewater stores. The credit card balances are accounts receivable on Tidewater’s balance sheet.• Some suppliers have made their merchandise available at a deep discount. As a result, the company purchased large quantities of these goods in an attempt to improve the company’s profitability.• In recent years, the company has struggled to pay its accounts payable on time. The company has improved on this during the past year and is nearly caught up on overdue payables balances.• The company reported net losses in each of the two…
Presented below is information for Flint Company:
Beginning of the year accounts receivable balance was $23,600.
Net sales (all on account) for the year were $103,100. Flint Company does not offer cash discounts.
Collections on accounts receivable during the year were $90,300.
Flint Company is planning to factor some accounts receivable at the end of the year. Accounts totaling $14,100 will be transferred to Credit Factors Inc. with recourse. Credit Factors will retain 7% of the balances for probable adjustments and assess a finance charge of 6%. The fair value of the recourse obligation is $1,021.
Prepare the journal entry to record the sale of the receivables
Compute Flint’s accounts receivable turnover for the year, assuming the receivables are sold.
ed
Softee Sodas and Patterson Beverage Company are two of the largest and most successful beverage companies in the world in terms
of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider
the following rounded amounts reported in their annual reports (amounts in millions).
Fiscal Year Ended:
Net Sales
Accounts Receivable
Allowance for Doubtful Accounts
Accounts Receivable, Net of Allowance
2018
$ 35,660
4,130
550
3,580
Softee Sodas
2017
$ 39,520
4,390
540
3,850
Patterson Beverage Company
2016
$ 44,440
4,580
530
4,050
2018
$ 71,440
7,680
100
7,580
2017
$ 72,120
7,590
130
2016
$ 66,660
7,250
140
7,460
7,110
Required:
1. Calculate the receivables turnover ratios and days to collect for Softee Sodas and Patterson Beverage Company for 2018 and 2017.
2-a. Which of the companies was quicker to convert its receivables into cash in 2018?
2-b. Which of the companies was quicker to convert its receivables into cash…
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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