HOW TO MANAGE SMALL SCALE BUSINESS IN NIGERIA EFFECTIVELY THE VALUE OF EFFECTIVE CREDIT MANAGEMENT TO SMALL SCALE BUSINESS IN NIGERIA INTRODUCTION Management of small business is as complex as the big one. Account receivables are important assets and valuable part of the working capital. Effective management of this component is very crucial to any type of business for its survival and for ensuring its growth. Effective credit administration will not only ensure continuity but can make
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net changes in the balance sheet accounts of Keating Corporation for the year 2011 are shown below. Account Debit Credit Cash $ 82‚000 Short-term investments $121‚000 Accounts receivable 83‚200 Allowance for doubtful accounts 13‚300 Inventory 74‚200 Prepaid expenses 17‚800 Investment in subsidiary (equity method) 20‚000 Plant and equipment 210‚000 Accumulated depreciation 130‚000 Accounts payable 80‚700 Accrued liabilities
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Question 1 Brown Ltd purchased equipment for $280‚ 000 on 1st July‚ 2010. It is expected that the equipment will have a residual value of $10‚ 000 at the end of its’ 3 year useful life (or 100‚000 machine hours). Calculate depreciation expense to the nearest whole dollar. a. Calculate the depreciation expense‚ accumulated depreciation and annual carrying amount for each of the 3 years ended 30th June‚ under the following depreciation methods: Straight line Reducing balance (rate = 47%)
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uncollectible accounts receivables and match them against revenues in the same accounting period in which the revenues are recorded. Second‚ companies record estimated uncollectibles as an increase (a debit) to bad debts expense and an increase (a credit) to allowance for doubtful accounts through an adjusting entry at the end of each period. Lastly‚ companies debit actual uncollectibles to allowance for doubtful accounts and credit them to accounts receivable at the time the specific account is written
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Sdn Bhd 225‚000 ordinary shares 281‚450 25‚000 6% preference shares 58‚000 RM20‚000 10% debentures 20‚000 Current assets Inventories 25‚000 30‚000 Account receivable 45‚000 35‚000 Bills receivable 14‚000 18‚000 Current account – E-Keen 25‚000 Bank 46‚550 155‚550 46‚700 129‚700 918‚000 659‚700 Shareholders’ equity Ordinary share capital of RM1.00 each 500‚000 300‚000 6% preference share
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MODULE 45 PERFORMANCE MEASURES 37. What is the free cash flow for 2009? a. $36‚000‚000 b. $30‚000‚000 c. $29‚000‚000 d. $26‚000‚000 38. Which of the following is not a measure of asset utilization? a. Inventory turnover. b. Average accounts receivable collection period. c. Fixed asset turnover. d. Debt to total assets. 39. What financial analysis technique would imply benchmarking with other firms? a. Horizontal analysis. b. Vertical analysis. c. Cross-sectional analysis. d. Ratio analysis. Items
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capital‚ control the operation expense and maybe resort to equity finance instead. Relevant “Sensitivity Analysis” is offered. For the bank officer‚ we advise him to ask for the right of supervising the operation of inventory and collection of accounts receivable. Except for that‚ the right of bank to adjust the loan limit inversely related to the financial health conditions could lower the risk taken by the bank. Finally‚ the conclusion and takeaways we draw from the case are stated. Key Words: Free
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lapping. b) One of the sales clerks has not been preparing charge slips for credit sales to family and friends. c) The EDP control clerk has been removing all sales invoices applicable to his account from the data file. d) The credit manager has misappropriated remittances from customers whose accounts have been written-off. 2. Customers having substantial year-end past due balances fail to reply after second request forms have been mailed directly to them. Which of the following is the most
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Problem Statement Recently the continued growth in sales has raised accounts receivable and inventories considerably. This decrease in inventory turnover has caused accounts payable to rise due to heavy reliance on credit from suppliers. There are many ways in which you can lower the size of the line of credit needed. Good management can lower the credit line needed by lowering the inventories and accounts receivables‚ which grew in 2005 and 2006 because Jones is trying to increase production
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Accounting Assignment #434 Best Friends Vet Clinic Part A Qantas Airline Short Report in accordance to Accounting Perspective Introduction On November 14‚ 2012‚ Qantas applied a capital management measure by 1) repaying its $650 million debt earlier than scheduled and 2) investing up to &100 million in an on-market share buy-back. This was fulfilled to reflect the Board’s goal: returning shareholders’ value‚ maintaining a strong balance sheet while still have the flexibility to
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