Financial Accounting-Chapter 8

Review the Balance sheet of your company contained in the SEC 10-K report. You will be copying the Balance Sheet in part three of this assignment.

Using the data from the company SEC website, notes to financial statements, and the Income Statement answer the following questions.

Type COMPANY NAME

  1. Define Accounts Receivable
  2. Define allowance for uncollectible accounts
  3. Define allowance for doubtful accounts
  4. Define bad debt expense
  5. Based on the information in the company’s most recent annual report, determine each of the following:
  6. Accounts Receivable
  7. What amount of accounts receivable did the company report at the end of each year reported?

 

  1. Allowance for Uncollectible Accounts
  2. How many occurrences of the word Allowance for Uncollectible Accounts were in the SEC Annual Report?
  3. What is the balance in the company’s Allowance for Uncollectible Accounts or similar wording at the end of the years reported? If you cannot find, did they use different terminology? Explain how you found your answer if wording was not exact. Search notes to the financial statement or search the entire 10K for words that are similar to help you determine Allowance for Uncollectible Accounts. Your company may not use that exact terminology. Example: loss on sales.

 

  1. Bad Debt Expense
  2. How many occurrences of the word Bad Debt Expense or similar wording were in the SEC Annual Report?
  3. How much bad debt expense did the company report for the most recent year?   If you cannot find, did they use different terminology? Explain how you found your answer if wording was not exact. Search notes to the financial statement or search the entire 10K for words that are similar to help you determine Allowance for Uncollectible Accounts. You company may not use that exact terminology. Example: loss on sales

 

  1. Percentage of total current assets is accounts receivable.
  2. What is the formula to compute the percentage of total current assets is accounts receivable?
  3. What percentage of Total current assets is accounts receivable at the end of each year presented? Has this percentage increased, decreased, or remained the same during this period? SHOW YOUR WORK!
  4. Using the information presented in the company’s annual report, compute the company’s accounts receivable turnover ratio and number of days’ sales in receivables at the end of each of the years reported?
  5. Accounts Receivable turnover ratio
    1. What is the formula for Accounts Receivable turnover ratio?
    2. What does accounts receivable turnover ratio mean?
    3. What is the Accounts Receivable turnover ratio at the end of the years reported? SHOW YOUR WORK! Formula included in Chapter 8. Reading the notes to the financial statement explain why the ratio is different from year to year.
  6. Number of days’ sales in receivables
    1. What is the formula for number of days’ sales in receivable?
    2. Why would you need to know the number of days’ sales is in receivables?
    3. What is the number of days’ sales in receivables at the end of the years presented? SHOW YOUR WORK!

 

  1. Based on this information, has the company’s management of accounts receivable improved? Briefly explain your answer, make sure you read the notes to the financial statements to document your answer. Briefly explain your answer.
  1. How does accounts receivable effect this company and it’s investors?
  2. What has affected accounts receivable ?

Note: Provide evidence from notes to financial statement. A research paper is to prove your data!!!! Do not include your opinion!!!

  1. Include a copy of the company’s balance sheet and income statement from Chapter 5. Find the balance sheet, highlight the income statement, right click copy. In the word document paste Balance sheet, then in the word menu click on the layout tab and click auto fit to contents, that is so the balance sheet fits correctly on the page. This is important for me to verify your data.

 

  1. Include work cited links

All your answers should be presented in a Word document (can include tables or graphs) and submitted in the submit box for this assignment. Please remember to check your spelling and grammar.