Harvard Business School 9-287-028 Rev. December 1‚ 1991 Advanced Medical Technology Corporation Early in April 1986‚ Tom Winter‚ vice president and loan officer of the Western National Bank of San Francisco‚ California‚ was reviewing a loan request for $8 million from Peter Haskins‚ president of Advanced Medical Technology Corporation. Advanced Medical Technology Corporation (AMT) developed‚ manufactured‚ and sold scientific medical instruments‚ needles and catheters that allowed rapid and
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It is certainly not a perfect barometer‚ but good enough. Watch for big decreases in this number over time. Make sure the accounts listed in current assets are collectible. Quick Ratio Formula: (Cash – Accounts Receivable) / Total Current Liabilities This is another good indicator of liquidity although by itself‚ it is not a perfect one. If there are receivable accounts included in the numerator‚ they should be collectible. Look at the length of time the company has to pay the amount listed
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Honors Program Credit – Accounting I Chapter 1 Hal Burton began a Web Consulting practice and completed these transactions during September of the current year: Sept. 1 Invested $100‚000 of his personal savings into a checking account opened in the name of the business. 2 Rented office space and paid $1‚200 cash for the month of September. 3 Purchased office equipment for $30‚000‚ paying $8‚000 cash and agreeing to pay the balance in one year. 4 Purchased office supplies for $750 cash. 8
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firm would be Airline because it would not use the inventory for its products. Therefore E‚ G‚ M and N should be the four firms. Then I determined each firm from each characteristic. N has clearly different numbers from others in high accounts receivable and note payable. From balance sheets of commercial banks at net searching are specified by their high long term investments. It is a ground that N should be a commercial bank even though I could not find note payable in their financial data
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are at least two elements (accounts) involved. These accounts are either debited or credited‚ with the amount that is reflected in the transaction‚ depending on the nature of the account (Real/Personal/Nominal) and the rule applicable to it. Golden universal rules of Debits & Credits Accounting elements are categorized into three groups; Real - examples are cash‚ equipment‚ furniture etc. Personal - Proprietor’s Capital‚ Accounts Payable‚ Accounts Receivables etc. Nominal - All expenses
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Typically industries that provide a service. • Advertising Agency: E o High receivable collection in days is indicative of advertising consulting firms i.e. projects are worked on and work is billed only after the work has been completed. In this case‚ ad campaigns are produced and run after which advertising firms then charge for services rendered. (CR) o A large portion of their liabilities is devoted to accounts payable simply due to pending payments to various media outlets they utilize to
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Sunset Medical: Outsourcing Medical Professional Services Introduction Dr. Sally Jones‚ a practicing Orthopedic Surgeon‚ owns Sunset Medical‚ a professional corporation located in Colorado. Sunset is a small practice servicing patients from the local community and tourists who are in the region to frequent one of the area’s ski slopes and hiking trails. Sunset is well respected by both Sally’s peers and patients; Dr. Jones has been approached several times to move her practice to a large urban
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Project Phase I American Eagle Outfitters‚ Inc. (AEO) By: David Jones I. Business Description Founded in 1977‚ American Eagle Outfitters (NYSE: AEO) is a retailer that designs and develops fashionable girls’ and boys’ apparel and accessories. The company’s target audience is boys and girls between the ages of 15 and 25 years old. The target audience seeks trendy and fashionable apparel product that meets a high standard of quality at an affordable
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What would you suggest as appropriate course of actions? 8. How would an external auditor perform his work in this company? 9. If you are appointed as the auditor to handle the work of this company‚ describe an appropriate audit programme on Trade Receivables of the company? 10. How should a professional member conduct himself/herself in commerce and industry? 11. What are the roles of professional accountants in relation to their compliance to the By-Laws of the Malaysian Institute of Accountants as
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charge as discount charges from the amount of the bill and balance is credited to customer account. Bill of exchange financing is the most liquid one from the banker’s point of view since‚ in time of emergencies‚ they can take those bills those bills to RBI for rediscounting. Even if the bill is dishonored‚ there is a simple remedy. The bank has to simply note and protest the bill and debit the customers account. Bills are always drawn with recourse. Despite many efforts of RBI to promote and develop
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