Balance sheet practice ADVANCED: Sally's Sandwiches is a family run business. They don't have a lot of experience in finance and they hoped to save money by not hiring a professional. Their cousin Lin complied the information, but realized it was too hard to make the balance sheet. Using the information below, create a balance sheet for them so that they don't have to hire someone. Information for Sally's Sandwiches as at 28 February 2022 Trade creditors Non-current assets Sales revenue Cash Overdraft Cost of good sold Borrowings- long-term Debtors Interest Share capital Short term loans Expenses Dividends Stock 10 150 45 7 5 13 62 20 15 63 21 34 11 12 Accumulated retained profits 28
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- You have just been hired as a financial manager for BEE Inc. Management has provided you with the information below and has asked you to provide a brief explanation for each of the following questions. Your answer must be a minimum of one sentence and no longer than two or three sentences. One word answers or an answer of "good" or "bad" only will receive zero marks. 2021 2020 2019 Current ratio .99 1.32 1.69 Total debt ratio 0.540 0.495 0.489 Profit Margin 0.10 0.11 0.14 Inventory Turnover 2.60 3.14 4.18 a. Based on the results of the past three years, how is the company doing in regards to their ability to pay their short-term debts? Please refer to the specific ratio you would point out to management that backs up your answer. b. The benchmark industry average for the debt ratio is ,490. What does this mean for BEE Inc.? c. The benchmark industry average for the profit margin is .15. What advice would you give…Michelle Company reports $345,000 in credit sales and $267,500 in accounts receivable at the end of 2019. Michelle currently uses the income statement method to record bad debt estimation at 4%. To manage earnings more efficiently, Michelle changes bed debt estimation to the balance sheet method at 4%. How much is the difference in net income between the income statement and balance sheet methods? A. $3,100 B. $13,800 C. $10,700 D. $77,500As part of the review of her business Rita has been looking into what she is owed by various customers and how many debts are outstanding. Rita has been able to gather the following information about her customers and credit sales. Rita has reached out to an old University friend to get some advice about the likelihood of the amounts owed to her being uncollectible. Age of Customer Debt Amounts owed Estimate of % that (including GST) will not be collected. 1-30 days overdue 14,107.50 5% 31– 180 days overdue 6,204.00 16 % 181 – 365 days overdue 2,458.50 25 % 1 year + overdue 517.00 100 % 23,287.00 Perfect Cover Insurance Brokers sales data for the past year is $42,900 $11,600 $ 2,400 (returns are only available on credit sales) Čredit Sales and Commissions Cash Sales and Commissions Sales Returns Industry data shows that 5% of credit transactions are likely to go bad. Rita has also informed you that the current balance in her allowance for doubtful debts account is 500 Dr after a recent…
- As part of the review of her business Rita has been looking into what she is owed by various customers and how many debts are outstanding. Rita has been able to gather the following information about her customers and credit sales. Rita has reached out to an old University friend to get some advice about the likelihood of the amounts owed to her being uncollectible. Age of Customer Debt Amounts owed Estimate of % that (including GST) will not be collected. 1-30 days overdue 14,107.50 5% 31– 180 days overdue 6,204.00 16 % 181 – 365 days overdue 2,458.50 25 % 1 year + overdue 517.00 100 % 23,287.00 Perfect Cover Insurance Brokers sales data for the past year is Credit Sales and Commissions $42,900 $11,600 $ 2,400 (returns are only available on credit sales) Cash Sales and Commissions Sales Returns Industry data shows that 5% of credit transactions are likely to go bad. Rita has also informed you that the current balance in her allowance for doubtful debts account is 500 Dr after a recent…I NEED HELP FEELING IN THE BLANKS Information related to Novak Company for 2020 is summarized below. Total credit sales $2,575,000 Accounts receivable at December 31 853,000 Bad debts written off 34,900 (a)What amount of bad debt expense will Novak Company report if it uses the direct write-off method of accounting for bad debts? $________________ (b)Assume that Novak Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Novak record if it has an Allowance for Doubtful Accounts credit balance of $3,700? $___________________ (c)Assume that Novak Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Novak record if it has an Allowance for Doubtful Accounts debit balance of $3,700? $__________________Assume that Toni Braxton Company has recently fallen into financial difficulties. By reviewing all available evidence on December 31, 2017. one of Toni Braxton's creditors, the National American Bank, determined that Tonì Braxton would pay back only 65% of the principal at maturity. As a result, the bank decided that the loan was impaired. if the loan is estimated to be $225,000 what entry should National American Bank make to record this loss? Bad Debt Expense 225,000 Allowance for Doubtful Accounts 225,000 Bad Debt Expense 146,250 Allowance for Doubtful Accounts 146,250
- Hey I need help with this accounting homework please no explanation or answers from online just follow the instructions which says put in the number which means I need to put in the correct numbers in as my answers. Please, thank you! Clint M. Invests $30,000 into Merle Company. The effect to Liabilities would be: (Type your numeric answer) Clint M. Invests $30,000 into Merle Company. The effect to Equity would be. (Type your numeric answer) Merle Company purchased a piece of equipment for $5,000 on account. The effect to Assets would be: (Type your numeric answer) Merle Company purchases a equipment for $5,000 on account. The effect to liabilities would be: (Type your numeric answer) Merle Company purchases a piece of equipment for $5,000 on account. The effect to Equity would be: (Type your numeric answer) Merle Company pays $1,000 for this month’s rent in cash. The effect to Assets would be: (Type your numeric answer) Merle Company pays $1,000 for this month’s rent…Juice World Jamaica Limited, a leading juice manufacturing company has recently hired you as an Accounting Officer. As per job description, you are required to assist in the preparation of the financial statements. The Accounts Manager has extracted a list of balances as at December 2021 for you to review. Revenue Administrative Expenses Distribution Costs Interest paid on loan Purchases Inventories at 1 January 2021 Trade receivables Provision for doubtful debts at Jan 2021 Bad debts Non- current Investment $ 7 600 010 2 300 000 980 231 125 000 4 500 330 1 018 900 630 340 19 634 70 110 300 900 Additional notes Provide for Administrative Expenses of $500 000 paid in advance at 31 December 2021 and Distribution Costs of $50 528 owing at 31 December 2021 Provision for Doubtful Debts is to be maintained at 10% of receivables iii. Inventories at 31 December 2021 were valued at $1 000 000 Provide for corporation tax of $80 000 which is payable on October…On December 31, 2021, Ghani Catering discovered that one of its customers, Vince Suerty, had gone bankrupt. He owes the company $4,600. Prepare the journal entry to write off the amount due from Vince Suerty, assuming the direct method is used. Do not enter dollar signs or commas in the input boxes. Date Dec 31 Account Title and Explanation + To record direct write-off of bad debt from accounts receivable Debit Credit
- Sally Goodenough owes ABC Company $100. ABC has decided that Sally is not going to pay them. ABC will: Group of answer choices do nothing Record bad debt expense of $100 Decrease its allowance for doubtful accounts Increase accounts receivable $100The chief accountant for Bramble Corporation provides you with the following list of accounts receivable written off in the current year. Date March 31 June 30 September 30 December 31 Customer E. L. Masters Company Stephen Crane Associates Amy Lowell's Dress Shop R. Frost, Inc. Amount $7,500 6,600 6.900 Net income would be $ 9,100 Bramble follows the policy of debiting Bad Debt Expense as accounts are written off. The chief accountant maintains that this procedure is appropriate for financial statement purposes because the Internal Revenue Service will not accept other methods for recognizing bad debts. All of Bramble's sales are on a 30-day credit basis. Sales for the current year total $2,200,000. The balance in Accounts Receivable at year-end is $81,100 and an analysis of customer risk and charge-off experience indicates that 12% of receivables will be uncollectible (assume a zero balance in the allowance). (b) By what amount would income before taxes differ if bad debt expense was…The sum of all of your customer Accounts Receivable is listed as part of on your balance sheet. * O Current Assets Current Liabilities Long-term Assets Suppose you are closing the books at the end of a fiscal year and you have a balance of $75000 in your Revenue account. What should you do with the balance? * O You should do nothing, and carry it over to the next accounting year. You should zero it out. You should move it to the liability account.