Morgan Co. purchases raw materials on account. Morgan's policy is to take advantage of discounts and pay in the month following the purchase. Some of...
This question has been answered
Question

Indicate whether each phrase is more descriptive of financial accounting or managerial accounting.

(a) May be subjective


Financial accounting


Managerial accounting



(b) Often used to obtain financing


Financial accounting


Managerial accounting



(c) Typically prepared quarterly or annually


Financial accounting


Managerial accounting



(d) May measure time or customer satisfaction


Financial accounting


Managerial accounting



(e) Future oriented


Financial accounting


Managerial accounting



(f) Has a greater emphasis on cost-benefit analysis


Financial accounting


Managerial accounting



(g) Keeps records of assets and liabilities


Financial accounting


Managerial accounting



(h) Highly aggregated statements


Financial accounting


Managerial accounting



(i) Must conform to external standards


Financial accounting


Managerial accounting



(j) Special-purpose reports


Financial accounting


Managerial accounting



(k) Decision-making tool


Financial accounting


Managerial accounting



(l) Income statement, balance sheet, and statement of cash flows


Financial accounting


Managerial accounting.



IMG-20210403-WA0030.jpgIMG-20210403-WA0032.jpgIMG-20210403-WA0031.jpgIMG-20210403-WA0050.jpg

Image transcriptions

Morgan Co. purchases raw materials on account. Morgan's policy is to take advantage of discounts and pay in the month following the purchase. Some of Morgan's suppliers do not offer discounts and require payment within the month of purchase. Other suppliers sell on credit terms of 2,!10 net 30, 1which means that Morgan can take a 2% discount and pay 98% of the invoiced amount if the invoice is paid within 10 days. If the invoice is not paid within 30 days of making the purchase, then Morgan must pay the full amount (100%) of the invoice. Remember, if Morgan elects not to take advantage of the discount, then it is good financial practice to delay the payment of an invoice until just before it is due. At the beginning of 1the year, Morgan's account payable balance is $60,000. All available discounts have been taken, and the balance will be paid in January. Given the following planned purchases for the next few months, determine the amount of cash that must be available each month to pay for the firm's purchases: Planned Purchases Planned Purchases Monthly Cash Discounted at 2110 Net 30 without Discounts Requirement 55,000 30,000 55,000 60,000 55,000 60,000

"Itempts: Keep the Highest: 4/8 Dane Co. p %6 following th 10. Budgeting for cash Aa Aa purchase. pay 98% Which of the following statements are true with regard to a cash budget? Check all that apply. making th )Cash budgets provide less specific financial information than the percentage-of-sales method and the take adva statement of cash flows. is due. The single biggest disadvantage of the cash budget is that it is not useful in identifying a firm's potential cash shortages. At the be 2:53 PM A cash budget provides information about a company's ability to repay its loans or meet its other obligations. and the Cash budgets can be used to plan, coordinate, and control a firm's activities. the amo Assume that Dane Co. has the following accounts receivable pattern: Month of salo 50% 0000 MetroPCS < Month following the sale 50% All sales are on credit. If sales in November and December are budgeted to be $900,000 and $1,000,000, respectively, the cash expected to be collected in December is $

%6L Dane Co. purchases raw materials on account. Dane's policy is to take advantage of discounts and pay in the month following the purchase. Some of Dane's suppliers do not offer discounts and require payment within the month of purchase. Other suppliers sell on credit terms of 2/10 net 30, which means that Dane can take a 2% discount and pay 98% of the invoiced amount if the invoice is paid within 10 days. If the invoice is not paid within 30 days of making the purchase, then Dane must pay the full amount (100%) of the invoice. Remember, If Dane elects not to take advantage of the discount, then it is good financial practice to delay the payment of an invoice until just before it is due. 2:53 PM At the beginning of the year, Dane's account payable balance is $50,000. All available discounts have been taken, and the balance will be paid in January. Given the following planned purchases for the next few months, determine the amount of cash that must be available each month to pay for the firm's purchases: Planned Purchases Planned Purchases Monthly Cash without Discounts Requirement .oooo MetroPCS Discounted at 2/10 Net 30 January 70,000 60,000 February 55,000 60,000 March 55,000 30,000

2016 Actual 2017 Initial Results Forecast Earnings per share $53 $5 Dividends per share $29 $29 Addition to retained earnings $486 $611 Gross profit $3,200 $3,520 Taxes (704) (787) Common dividends (570) (570) Cost of goods sold (12,800) (14,080) Net income $1,056 1,181 Earnings before taxes $1,760 $1,968 Net sales $16,000 $17,600 Number of common shares (millions) 20.0 20.0 Interest (320) (320) Depreciation (320) (352) Fixed operating costs except depreciation (800) (880) Earnings before interest and taxes $2,080 $2,288 Which of the following are assumptions made by the initial income statement forecast? Check all that apply. Saltwater Logistics Corp. will be issuing additional shares of common stock in the coming year. 10 The cost of sales percentage for Saltwater Logistics Corp. will decrease due to economies of scale. Saltwater Logistics Corp. will be issuing additional debt in the coming year. The forecasted increase in net sales is 10%. Spontaneously generated funds will sufficiently cover any financing needs. No excess capacity currently exists. Which of the following could be a direct cause of financing feedback? I. Issuing additional common stock II. Purchasing additional buildings with internally generated funds III. An unexpected increase in sales IV. Borrowing from the bank O I and TV III and IV O III OI O II and IV O MV I and II OI

Answered by Expert Tutors

e ve

suDonec aliquet. Lorisus ante, dapibus
itur laoreet. Nam rsucing
ng elit. Nam lacinia pulvinar tocingcing
ongue vel laoreet ac, dictum vitae odio. Dcingsu
, dictum vitae odio. Donec aliquet. Lorem ipsucing
nec facilisis. Pesucing
a. Fusce dui lectus, congue vel laoreet ac, dicsucing
sus ante, dapibus a molestie consequat, ucingsu
lestie consequat, ultrices accingsu
or nec facilisis. Pellentesque dapibcingsu
trices ac magna. Fusce duisucing
m risus ante, dapibus acingcing
tesque dapibus efficitur laoreet. Nam risus ante, dapibus a mocingsu

gue

o. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec fa

gue

Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectet

s ante, dapibus a molestie

  • icitur laoreet. Nam risu

Fusce dui lectus, congue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia p

gue

  • at, ultrices ac magna. Fusce

gue vel laoreet ac, dictum vitae odio. Donec aliquet. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibu

Step-by-step explanation
17815144
17815019
sum dolor sit amet, consectetur adipiscing elit. Nam lacinia pulvinar tortor nec facilisis. Pellentesque dapibus efficitur laoreet. Nam risus ante, dapibus a mole
2 Attachments
received_350701136372982.jpeg
jpeg
received_461516305162773.jpeg
jpeg
Get unstuck

334,388 students got unstuck by Course
Hero in the last week

step by step solutions

Our Expert Tutors provide step by step solutions to help you excel in your courses