XYZ Bank told Bob to increase cash to $70,000 from 2016 to 2017. But cash increased from $16,566 in 2016 to just $33,411 in 2017, well short of $70,000.
- Positive Trends
Explain how these three following accounts increased year to year cash balances and what can be done to ensure the situation continues in the upcoming year. Also, comment on the concept applicable to the accounts; as underlined.
- Decrease in Accounts Receivable and the impact on year to year changes in cash and discussion on 2/10 net 30 payment terms
- Increase in Accounts Payable and the impact on year to year changes in cash and discussion on the filing of a mechanics lien
- Increase in Wages Payable and the impact on year to year changes in cash and the accounting concept of Expense Accruals
- Negative Trends
Explain how the three following accounts reduced year to year cash balances and what can be done to correct the situation in the upcoming year. Also, comment on the concept applicable to the accounts; as underlined.
- Build up of Inventory and the impact on year to year changes in cash and discussion on Economic Order Quantity for Inventory management
- Purchase of Plant Property and Equipment and the impact on year to year changes in cash and Modified Accelerated Cost Recovery tax table
- Pay down of Long Term Debt: Bank Note and the impact on year to year changes in cash and explain collateral and purpose of UCC1 filings
Briefly explain to Bob the two most important strategies he should employ to realize improved cash flow trends.
Comparative Balance Sheets and Cash Flow Statement Worksheet ASSETS Cash and marketable securities 2016 16,566 2017 33,411 Did Cash Go Up or Down? $ 16,845 $ $ S $ XYZ Bank told Bob to increase cash to $70,000 from 2016 to 2017 But cash increased from $16,566 in 2016 to just $33,411 in 2017, well short of $70,000. Why?...Question 68 in Unit 1. See link to text and also Seminar in week 1 and A/R went down (good or bad for cash?) Accounts Receivable 260,205 3 318,768 S 58,563 You collected outstanding Accounts Rec (quickly) Explain 2/10 net 30 payment terms. Inventory S 423,819 $ 352,740 S (71,079) You built up/have more inventory on hand in 2014. Explain Economic Order Quantity (EOQ). (11.339) (40.700) Other current assets Total Current Assets $ 41.251 758,686 $ 3 29.912 S 217.986 S Plant Property and Equipment SL 1,512,675 S 1.203.220 S (109.455) You bought PP&E in 2017 explain MACRS 30,420 (119.735 $ S Goodwill and other assets Total Assets LIABILITIES AND EQUITY 382,145 2.653,506 412,565 2.533,771 This one worksheet provides all the data you need to complete the project. You may want to assign each team member a respective "Explain." ACCOMA Pale 378.236 5 3 32.004 S 46,232 You owe vendors money but have not paid them yet. What is a Mechanics Lien? Wages Payable Accrued income taxes Total Current Liabilities $ 21.125 SS 413,848 $ 6,625 What is the Accrual Accounting concept here? 4310 57.167 16,815 S 356,681 S S Long-Term Debt: Bank Notes S 679,981 $ 793,515 S Total Liabilities Total Common Equity Total Liabilities and Equity S $ 1,093,829 1,559,677 2.653.506 $ $ 1,150,196 1,383.575 2.533,771 113,534) The loan balance went down during 2014 Explain collateral and ucci forms (56,367) 176.102 119,735 Wages Payable Accrued income taxes Total Current Liabilities 14.487 21,125 413,848 $ $ $ 7.862 16,815 356,681 $ $ $ 6,625 What is the Accrual Accounting concept here? 4,310 57.167 $ $ $ Long-Term Debt: Bank Notes $ 679,981 $ 793,515 S $ Total Liabilities Total Common Equity Total Liabilities and Equity 1,093,829 1,559,677 2,653,506 $ $ $ 1,150,196 1,383,575 2,533,771 (113,534) The loan balance went down during 2014. Explain collateral and UCCI forms (56,367) 176,102 119,735 $ addition , it was reported that the compan y had a income $3,155, 848 and deprecia tion expense s were equal to $212,36 6 during 2014. Ner Income Depreciation Dividends Paid $3,155,848 $212,366 -$2,966,412 Comparative Balance Sheets and Cash Flow Statement Worksheet ASSETS Cash and marketable securities 2016 16,566 2017 33,411 Did Cash Go Up or Down? $ 16,845 $ $ S $ XYZ Bank told Bob to increase cash to $70,000 from 2016 to 2017 But cash increased from $16,566 in 2016 to just $33,411 in 2017, well short of $70,000. Why?...Question 68 in Unit 1. See link to text and also Seminar in week 1 and A/R went down (good or bad for cash?) Accounts Receivable 260,205 3 318,768 S 58,563 You collected outstanding Accounts Rec (quickly) Explain 2/10 net 30 payment terms. Inventory S 423,819 $ 352,740 S (71,079) You built up/have more inventory on hand in 2014. Explain Economic Order Quantity (EOQ). (11.339) (40.700) Other current assets Total Current Assets $ 41.251 758,686 $ 3 29.912 S 217.986 S Plant Property and Equipment SL 1,512,675 S 1.203.220 S (109.455) You bought PP&E in 2017 explain MACRS 30,420 (119.735 $ S Goodwill and other assets Total Assets LIABILITIES AND EQUITY 382,145 2.653,506 412,565 2.533,771 This one worksheet provides all the data you need to complete the project. You may want to assign each team member a respective "Explain." ACCOMA Pale 378.236 5 3 32.004 S 46,232 You owe vendors money but have not paid them yet. What is a Mechanics Lien? Wages Payable Accrued income taxes Total Current Liabilities $ 21.125 SS 413,848 $ 6,625 What is the Accrual Accounting concept here? 4310 57.167 16,815 S 356,681 S S Long-Term Debt: Bank Notes S 679,981 $ 793,515 S Total Liabilities Total Common Equity Total Liabilities and Equity S $ 1,093,829 1,559,677 2.653.506 $ $ 1,150,196 1,383.575 2.533,771 113,534) The loan balance went down during 2014 Explain collateral and ucci forms (56,367) 176.102 119,735 Wages Payable Accrued income taxes Total Current Liabilities 14.487 21,125 413,848 $ $ $ 7.862 16,815 356,681 $ $ $ 6,625 What is the Accrual Accounting concept here? 4,310 57.167 $ $ $ Long-Term Debt: Bank Notes $ 679,981 $ 793,515 S $ Total Liabilities Total Common Equity Total Liabilities and Equity 1,093,829 1,559,677 2,653,506 $ $ $ 1,150,196 1,383,575 2,533,771 (113,534) The loan balance went down during 2014. Explain collateral and UCCI forms (56,367) 176,102 119,735 $ addition , it was reported that the compan y had a income $3,155, 848 and deprecia tion expense s were equal to $212,36 6 during 2014. Ner Income Depreciation Dividends Paid $3,155,848 $212,366 -$2,966,412
