Intermediate Financial Management
14th Edition
ISBN: 9780357516782
Author: Brigham, Eugene F., Daves, Phillip R.
Publisher: Cengage Learning
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Question
Chapter 9, Problem 2Q
Summary Introduction
To discuss: Whether some liabilities and net worth items will increase spontaneously with the increase in sales.
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Some liability and net worth items increase spontaneously with increases insales. Put a check (✓) by the following listed items that typically increasespontaneously:Notes payable to banks______________________
Certain liability and net worth items generally increase spontaneously with increases insales. Put a check mark ( ) next to those items that typically increase spontaneously.
Accounts payable ___________Notes payable to banks ___________Accrued wages ___________Accrued taxes ___________Mortgage bonds ___________Common stock ___________Retained earnings ___________
What does the Accounts Receivable Turnover measure?
Group of answer choices
a)The net realizable value of Accounts Receivable
b)The dollar amount of funds tied up in Accounts Receivable
c)How quickly a company collects Accounts Receivable
d)The average days for cash collection.
Chapter 9 Solutions
Intermediate Financial Management
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Similar questions
- What information can best be elicited from a receivable ratio? A. company performance with current debt collection B. credit extension effect on cash sales C. likelihood of future customer bankruptcy filings D. an increase in future credit sales to current customersarrow_forwardCreate a balance sheet with the following information. Create a balance sheet for the following information. Bank Accoutns recievable Equipement Accounts payable Long-term debt Capital Retained earning Withdrawis msi in ^ 00 C 4 I P JOOOOL K V B m 2050 6100 900 150 2000 5000 10900 9000 0 ALTOR inarrow_forwardWhich of the following options indicate how quickly accounts receivables are converted into cash? Select one: a. Total assets turnover b. Days to collect accounts receivable c. Working capital d. Accounts receivable turnoverarrow_forward
- 20) On a bank's income statement, the amount available to keep as retained earnings or pay to the stockholders in dividends is the bank's A) net income. B) net operating income. C) net extraordinary items. D) net interest marginarrow_forwardHow does a decrease in income taxes receivables on the balance sheet, impact cash flow? What is the journal entry to reflect this?arrow_forwardWhich of the following are ways companies could use accounts receivables for earnings management? Select all that apply. Overestimate uncollectibles to reduce earnings (cookie jar reserve) Underestimate uncollectibles to reduce earnings (cookie jar reserve) Underestimate uncollectibles to increase earnings Overestimate uncollectibles to increase earningsarrow_forward
- Increase in notes receivable is reported as ?cash flow from "operating" activities اخترأحد الخيارات a. False O b. True Oarrow_forwardWhich of the following is a positive sign that a company can quickly turn its receivables into cash? a. A low receivables turnover ratio.b. A high receivables turnover ratio.c. A low average collection period.d. Both a high receivables turnover ratio and a low average collection period.arrow_forwardInterest on your bank balance: Suppose your bank account has a balance todayof $100. Consider the following time periods: t = 0, t = 1, t = 2, t = 12,t = 24, t = 48, and t = 60. Assume there are no deposits or withdrawalsin this account other than the interest that accumulates. (If you like, use aspreadsheet program to help you with this question.)(a) Compute your bank balance for these time periods assuming the interestrate is 1%.(b) Do the same thing for an interest rate of 6%.(c) Plot your bank balances for these two scenarios on a standard scale.(d) Do the same thing with a ratio scale.arrow_forward
- If a bank credit card customer repays the full balance on their credit card, and the bank immediately puts the proceeds into Federal Reserve deposits, then Risk-weighted assets increase Risk-weighted assets decrease Risk-weighted assets stay the samearrow_forwardWhich of the following would result when a company lends cash to a customer in exchange for a ten month note receivable? a. a noncurrent asset and an investing cash flow are created. b. a noncurrent asset and a financing cash flow are created. c. a current asset and a financing cash flow are created. d. a current asset and an investing cash flow are created.arrow_forwardTrue or False Current Ratio is a measure used to assess the liquidity of the company, computed as current assets divided by current liabilities. * True O False Making sales using credit cards is a way a company can dispose its receivables.arrow_forward
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