8. The monitoring of a firm's receivables investment using anaging schedule Consider the case of Yorkshire...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
8. The monitoring of a firm's receivables investment using anaging schedule Consider the case of Yorkshire Pudding Inc.: Yorkshire Pudding Inc. sells on terms of 1/15 net 30. The company's management is concerned that its investment in accounts receivable is unintentionally growing due to its customers' late payments, called "arrearages." In anticipation of being asked about this by the company treasurer, Mina collected a sample of accounts receivable information. The sample represents 25% of the company's accounts receivable outstanding. Assist Mina by organizing the data into an aging schedule using the categories shown. Then calculate the volume of accounts receivable outstanding and the percentage of total receivables outstanding in each category to complete the statements that follow. Account Number 2667 1816 2083 2748 2796 1503 1539 2783 2522 1659 Invoice Date Amount Due September 30 August 12 November 8 October 23 November 5 October 3 September 25 August 27 September 14 July 20 $321.80 1,444.70 315.60 358.40 472.80 454.30 3,933.80 2,306.75 1,068.50 548.75 D 8 2522 1659 September 14 July 201 Total: $788.40 1,068.50 548.75 $11,225.40 Yorkshire Pudding Inc. Aging Schedule, November 30 Days Late Period Arrearage Cumulative Arrearage 1-30 days 31-60 days 61-90 days 91+ days $788.40 1,601.10. 11,225,40 An aging schedule provides insights into the condition of a firm's accounts receivable. In this case, using the preceding sample data, the percentage of receivables that are 61-90 days and 91+ days late are and respectively. This has the potential to be a receivables and working capital management problem for Yorkshire, because it means that the total dollar value for all of its accounts receivable that are more than 31 days late is (Remember, the preceding sample data represents 25% of Yorkshire's total volume of accounts receivable.) Grade It Now Save & Continue Continue without saving 8. The monitoring of a firm's receivables investment using anaging schedule Consider the case of Yorkshire Pudding Inc.: Yorkshire Pudding Inc. sells on terms of 1/15 net 30. The company's management is concerned that its investment in accounts receivable is unintentionally growing due to its customers' late payments, called "arrearages." In anticipation of being asked about this by the company treasurer, Mina collected a sample of accounts receivable information. The sample represents 25% of the company's accounts receivable outstanding. Assist Mina by organizing the data into an aging schedule using the categories shown. Then calculate the volume of accounts receivable outstanding and the percentage of total receivables outstanding in each category to complete the statements that follow. Account Number 2667 1816 2083 2748 2796 1503 1539 2783 2522 1659 Invoice Date Amount Due September 30 August 12 November 8 October 23 November 5 October 3 September 25 August 27 September 14 July 20 $321.80 1,444.70 315.60 358.40 472.80 454.30 3,933.80 2,306.75 1,068.50 548.75 8. The monitoring of a firm's receivables investment using anaging schedule Consider the case of Yorkshire Pudding Inc.: Yorkshire Pudding Inc. sells on terms of 1/15 net 30. The company's management is concerned that its investment in accounts receivable is unintentionally growing due to its customers' late payments, called "arrearages." In anticipation of being asked about this by the company treasurer, Mina collected a sample of accounts receivable information. The sample represents 25% of the company's accounts receivable outstanding. Assist Mina by organizing the data into an aging schedule using the categories shown. Then calculate the volume of accounts receivable outstanding and the percentage of total receivables outstanding in each category to complete the statements that follow. Account Number 2667 1816 2083 2748 2796 1503 1539 2783 2522 1659 Invoice Date Amount Due September 30 August 12 November 8 October 23 November 5 October 3 September 25 August 27 September 14 July 20 $321.80 1,444.70 315.60 358.40 472.80 454.30 3,933.80 2,306.75 1,068.50 548.75 D 8 2522 1659 September 14 July 201 Total: $788.40 1,068.50 548.75 $11,225.40 Yorkshire Pudding Inc. Aging Schedule, November 30 Days Late Period Arrearage Cumulative Arrearage 1-30 days 31-60 days 61-90 days 91+ days $788.40 1,601.10. 11,225,40 An aging schedule provides insights into the condition of a firm's accounts receivable. In this case, using the preceding sample data, the percentage of receivables that are 61-90 days and 91+ days late are and respectively. This has the potential to be a receivables and working capital management problem for Yorkshire, because it means that the total dollar value for all of its accounts receivable that are more than 31 days late is (Remember, the preceding sample data represents 25% of Yorkshire's total volume of accounts receivable.) Grade It Now Save & Continue Continue without saving D 8 2522 1659 September 14 July 201 Total: $788.40 1,068.50 548.75 $11,225.40 Yorkshire Pudding Inc. Aging Schedule, November 30 Days Late Period Arrearage Cumulative Arrearage 1-30 days 31-60 days 61-90 days 91+ days $788.40 1,601.10. 11,225,40 An aging schedule provides insights into the condition of a firm's accounts receivable. In this case, using the preceding sample data, the percentage of receivables that are 61-90 days and 91+ days late are and respectively. This has the potential to be a receivables and working capital management problem for Yorkshire, because it means that the total dollar value for all of its accounts receivable that are more than 31 days late is (Remember, the preceding sample data represents 25% of Yorkshire's total volume of accounts receivable.) Grade It Now Save & Continue Continue without saving
Expert Answer:
Answer rating: 100% (QA)
You have provided images that involve preparing an aging schedule for Yorkshire Pudding Incs accounts receivable The aging schedule helps a company manage its accounts receivable by showing the amount ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Consider Problem 13.28. The solvent MDEA becomes rich in acid gases. To recycle this solvent, it is first heated to 90C in exchanger E-2001 and then sent to the top stage of the stripper T-2002 as...
-
Define a conglomerate merger? Explain.
-
Predict the effect of each of the following mutants on the rate of glycolysis in liver cells (increase, decrease, no change): (a) Loss of the allosteric site for ATP in PFK-1 (b) Loss of the binding...
-
The block is made of titanium Ti-6A1-4V and is subjected to a shortening of 0.06 in. along the y axis, and its shape is given a tilt of =89.7. Determine x , y , and Y xy . 4 in. 8 A 5 in.
-
ABC, activity area cost-driver rates, product cross-subsidization Idaho Potatoes (IP) operates at capacity and processes potatoes into potato cuts at its highly automated Pocatello plant. It sells...
-
Define temporal accuracy and jitter in RTOS. How does an RTOS manage these factors to ensure predictable and reliable task execution ?
-
Most businesses sell several products at varying prices. The products often have different unit variable costs. Thus, the total profit and the breakeven point depend on the proportions in which the...
-
Alexander Ellington, President of Ellington Foods, has contacted your firm to discuss the companys defined-benefit pension plan. He has provided the following information about the company and its...
-
Any unauthorized change to the scope that results in project delays is known as scope creep. When something is overlooked and not covered in the initial requirements document, it needs to be itemized...
-
what ways does inspiration intersect with motivation and drive, propelling individuals towards extraordinary feats of accomplishment ? Explain
-
Harrti Corporation has budgeted for the following sales: July $ 446,600 August $ 581,600 September $ 615,800 October $ 890,800 November $ 738,000 December $ 698,000 Sales are collected as follows:...
-
Assume the following: Sales price and cost of a property are $ 3 , 0 0 0 , 0 0 0 and $ 2 , 1 0 0 , 0 0 0 , respectively, so that the total profit to be recognized is $ 9 0 0 , 0 0 0 . Seller received...
-
How does inspiration catalyze the process of creativity, particularly in the realms of art and innovation ?
-
Ensuring the right type of products are produced is referred to as _________ efficiency. a Technical b Productive c Allocative d Economic
-
Draw a Feynman diagram for the reaction n + v p + .
-
Mike sells his home to Jane on April 2, 2012. Jane pays the property taxes covering the full calendar year in October, which amount to $2,500. How much may Mike and Jane each deduct for property...
-
Ulysses and Penelope are married and file separate returns for 2012. Penelope itemizes her deductions on her return. Ulysses' adjusted gross income was $17,400, his itemized deductions were $2,250,...
-
Jan has two jobs during 2012. One employer withheld and paid FICA taxes on $66,600 of Jan's salary, and the other employer withheld and paid FICA taxes on $44,400 in salary paid to Jan. Calculate the...
-
A prototype can be ___________. (a) Complete system with partial requirements (b) Working model (c) Full-fledged system (d) All of these
-
_____________ is also used as requirement finding and feasibility testing tool. (a) Prototype (b) Reports (c) System (d) Procedure
-
Which of the following systems development approach is adopted if information requirements are not well defined? (a) SDLC (b) Prototype (c) Structured approach (d) Agile
Study smarter with the SolutionInn App