question 2

question 1

Samans is the president of Ar- 25) The sale of receivables to a third party is ca Al factoring B) collateraling Cdiscounting D) securitization more conservative in their business decision-making. nd to compensation committee requests for information 26) A clawback provision in an employment contract requires managers to become more conservative in their business de requires managers to respond to compensation committee reques C) requires managers to return bonuses res managers to return bonuses received in the event of a financial statement restatement requires managers to refrain from making discretionary accruals 27) Which one of the following explanations to ch one of the following explanations for the growth of accounts receivable outstrippers sales represents a red flag? the firm adopts new credit terms that lengthen the ment terms to the industry avere 8) The firm adopts an aggressive revenue recognition policy C) The firm develops an attractive credit policy for first time buyers by the firm changes its timing of revenue recognition to a more conservative approach Part II : Short Answer 1 Playscapes, Inc. sells playground equipment to schools and municipalities. Invoices are mailed at each month for all goods shipped during that month: credit terms are net 30 days. Sales and acco receivable data for 2016, 2017, and 2018 were as follows (6 points): 2016 2018 $2,980,000 $ 411,000 2017 $2,755,000 $ 352,000 $ $ Sales Year-end receivables 2,675,000 330,000 Required: a. Calculate the growth rates in sales and receivables during 2017 and 2018. b. Do your calculations indicate any potential problems with Playworld's receivables? If so, su explanation for your findings. (Provide sufficient analysis to earn several points.) Part 1: Short Answer 1. Playscapes, Inc. sells playground equipment to schools and municipalities invorde each month for all goods shipped during that month; credit terms are net 30 days receivable data for 2016, 2017 and 2018 were as follows (6 points) 2018 $ 2,675,000 $2,755,000 $ 2,980,000 Year-end receivables $ 330,000 $ 352,000 $ 411,000 2016 2017 Sales Required: a. Calculate the growth rates in sales and receivables during 2017 and 2018 b. Do your calculations indicate any potential problems with Playworld's receivables? If so, su explanation for your findings. (Provide sufficient analysis to earn several points)