Chapter-V Accounts Receivable Management • Introduction • Goals of Receivable Management • Credit Management • Optimum Credit Policy • Credit of Account Receivable 155 Introduction Accounts receivable represent the amount due form customers (book debts) or debtors as a result of selling goods on credit. “The term debtors is defined as ‘debt’ owned to the firm by customers arising from sale of goods or services in the ordinary course of business.” The three characteristics of
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following items‚ and determine the correct amount to report on the income statement for each‚ using the accrual basis of accounting for the referenced period of time. Revenues A Company had beginning accounts receivable of $8‚000. The company reported cash basis revenues of $100‚000. The ending accounts receivable amounted to $18‚000. Supplies B Company purchased $25‚000 of supplies. Supplies on hand decreased by $5‚000 during the period. Rent C Company started the year with no prepaid rent
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chapter 1 accounting information systems: An overview Suggested Answers to Discussion Questions 1.1 The value of information is the difference between the benefits realized from using that information and the costs of producing it. Would you‚ or any organization‚ ever produce information if its expected costs exceeded its benefits? If so‚ provide some examples. If not‚ why not? Most organizations produce information only if its value exceeds its cost. However‚ there are two situations
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REPORT ON ACCOUNT RECEIVABLE MANAGEMENT TATA STEEL Prepared by www.AssignmentPoint.com Date: 21-05-202 EXECUTIVE SUMMARY The project deals in “account receivable management at Tata Steel”. Receivable management is one of the most important aspects of the organization‚ as it deals with the management of the outstanding. The profit of the company mainly depends on the accounts receivables. Therefore it needs a careful analysis and proper management. Debtors occupy an important
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I acknowledge‚ with heartfelt gratitude‚ the whole-hearted support of Mr. Bhaskar Sharma(Regional Manager‚ OUTLOOK Group) for his kind motivation and guidance to design‚ undertake and accomplish the study and the project. I would also like to thank OUTLOOK Group for the training program and for the knowledge which I’ve gained during the session. My obligation to Mr. Prince Vohra(Project Mentor‚ Lovely Professional University) and Mr. Madhusudan Meher (Project Mentor‚ Outlook Group)and other faculty
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Cemex Key points summary | |Cemex was originally founded in 1906 as Cementos Hidalgo and became Cemex (Cementos Mexicanos) after a merger | |Case Summary |with Cementos Portland Monterrey in 1931. Throughout the 1960’s‚ 70’s‚ and 80’s‚ Cemex expanded throughout | | |Mexico to gain a 65% share of the domestic market by the end of the 1980’s. Under the leadership of CEO Lorenzo | |
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By 1999 the cement industry had emerged six major international competitors: Holderbank‚ Lafarge‚ CEMEX‚ Heidelberger‚ Italcementi‚ and Blue Circle. These six majors owned 500 million tons of capacity‚ representing slightly over one-quarter of the world total‚ or over one-third of the total excluding China.
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1. What benefits have CEMEX and the other global competitors in cement derived from globalization? Globalization has given many benefits to CEMEX and its competitors. First of all‚ it reduced the tariffs of product exportation by acquiring local plants and facilities instead. By doing so‚ these cement companies could control the localized quarries‚ which give them the proximity to the raw material needed for cement production. No need to ship the goods across the border‚ therefore no tariffs on
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Next Plc | 2011 | 2010 | PerformanceGross Profit | 1008.7/3453.7 = 29.21% | 996.9/3406.5 = 29.26% | Operating Profit | 574.8/3453.7 = 16.64% | 529.8/3406.5 = 15.56% | ROCE | 574.8/(232.4 + 727) = 59.91% | 529.8/(133.4+802) = 56.63% | Asset Turnover | 3453.7/(232.4+727) = 3.60 times. | 3406.5/(133.4+802) = 3.64 | LiquidityCurrent Ratio | 1067.3/832.9 = 1.3:1 | 1041.2/758.1 = 1.4:1 | Quick Ratio | (1067.3 – 368.3)/832.9 = 0.84:1 | (1041.2 – 309)/758.1 = 0.97:1 | Inventory Days
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CEMEX What benefits have CEMEX and the other global competitors in cement derived from globalization? More broadly‚ how can cross-border activities add value in an industry as apparently localized as cement? There have been several benefits for CEMEX and its global competitors derived from globalization: (strategic group‚ part of the big six competitiors) International trade offered opportunities to arbitrage price differentials. Import from low cost countries and sell to 3rd parties to
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