factoring recievables

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snebhd24

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this assignement on excel, factoring cash receivables i have some of the work made but still needs a lot of work this assignemtent DOESN'T HAVE ANY FURTHER INSTRUCTIONS SO PLEASE TAKE A CAREFUL LOOK OF THE MATERIAL BEFORE TAKING THE ASSIGNMENT

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2015 To record issue *Think about blend of debt and equity. Can change how many shares to issue If not 1000 shares, will need to raise the rest (so equity and liabilities equal 180000) Will need to record secured note to shareholder 3 year note 5% annual BV 0 1 2 3 4 5 Rate 40000 24000 14400 8640 5184 0 Assigned Rec Fee Factor Payable Dpr 0.4 0.4 0.4 0.4 0.4 0.4 16000 9600 5760 3456 5184 185000 14800 127650 To record Amortize/dpr Note Receivable Professional Service Revenue To record 6-Year note @ In Exchange for Professional Service R To record purchase of 5,444.38 on account To record sale of on account To record Amortize/dpr To Assign Discount Fee Rate Common scriptions offered Shares Subscription pr. Cash received on subscriptions Declare script dividend on of EPS To discount Note Receivable on last d 2016 To record purchase of To settle 2015 Accounts Payable To record sale of To record receipt of To record receipt of To record purchase of To record sale of Equipment 1 To record sale of To record To record declaration of Accounts Receivable Aging Summary % BD % Note Rec Prof Svc Rev Balance Sheet 2015 Cash Accounts Rec Allowance for bad debt Assigned Rec Subscriptions Receivable Note Receivable Note Receivable Discounted Inventory Equipment A.D. Total Income Statement 2016 2015 2016 Svc Revenue Product Revenue COGS GM Depr Bad debt expense EBIT Factor Fee Loss on Note Contingent loss Gain on sale Interest Exp Interest Rev Net Inc Cash Flow Ratios (Year 2) Income Quality Cash from Operating Activities Net Income Times Interest Earned EBIT Interest Expense Operating Cash/Total Debt Ratio Cash from Operating Activities Total Debt Current Ratio Current Assets Current Liabilities Altman Z- Score (Year 2) Weight Work Capital Total Assets 1.2 Weight Mkt Value of Equity Total Assets 0.6 Z-Score Interpretation: > 3.0 1.80 - 2.99 < 1.80 Receivables Ratios Year 2) Collection Efficiency Beg Rec + Cr Sales - Ending Rec beg Rec + Cr Sales - Current Rec Bad Debt Ratio Bad debt Cr Sales Percent Current Current Rec Tot Rec Receivable/Sales Ratio Accts Rec Total Revenue Plus 60 Ratio Rec > 60 Days Tot Rec Accts Rec Turnover Cr Sales Ave Rec Days in Receivables Ave Rec Daily Cr Sls Days Sales Outstanding Accts Rec Cr Sales - TA0/NS0 * ΔNS - (AP0 + LOC0 + Build the cash flow forecast for outsi and discuss this firm''s strategy for ra Forecast Actual Decision to assign receivable smeans you must have enough cash to cover the factor payable liabilities account that's created Script dividend (debit to RE and credit to liability) pulls down retained earnings which pulls down alt-z score and pulled down Impact of script dividend is muted when you reduce % of EPS. If you did not need as much cash, you would not need to discount note at end of year 1. Only reason you discounted originall The faster you accelerate depreciation, the worse the Times Interest Earned ratio looks. But accelerated depreciation will ma 1000 shares @ 10 par 180 Mkt 0.07 annual 40000 Note @ 5 years ddb on equipment purchase Note Rec Prof Svc Rev 95000 fessional Service Revenue cord 6-Year note @ 0.09 change for Professional Service Revenue 95000 95000 95000 cord purchase of 400 units @ 500 cord sale of 360 units @ 875 50000 Note @ 5 years SL 0.09 annual on equipment purchase 185000 Receivables 0.25 0.08 0.11 mon scriptions offered 300 18 3900 received on subscriptions are script dividend on Interest rate scount Note Receivable on last day of yr cord purchase of shares @ 0.35 @ 0.18 0.08 550 units @ 625 375 units @ 1100 ttle 2015 Accounts Payable cord sale of cord receipt of 115000 cord receipt of 70000 cord purchase of 110 Assigned receivables Receivables Treasury shares 192 cord sale of Equipment 1 38000 cord sale of 7/25/2016 70 Treasure shares 70000 Cash 205 dividend cord declaration of 0.1 stock dividend @ 205 unts Receivable Aging Summary
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Explanation & Answer

Attached.

2015
To record issue
*Think about blend of debt and equity. Can change how many shares to issue
If not 1000 shares, will need to raise the rest (so equity and liabilities equal 180000)
Will need to record secured note to shareholder
3 year note
5% annual
BV
0
1
2
3
4
5

Rate
40000
24000
14400
8640
5184
0

Assigned Rec
Fee
Factor Payable

Dpr
0.4
0.4
0.4
0.4
0.4
0.4

16000
9600
5760
3456
5184

185000
14800
127650

To record
Amortize/dpr

Note Receivable
Professional Service Revenue
To record 6-Year note @
In Exchange for Professional Serv

To record purchase of
5,444.38 on account
To record sale of
on account
To record
Amortize/dpr
To Assign
Discount
Fee
Rate
Common scriptions offered
Shares
Subscription pr.
Cash received on subscriptions
Declare script dividend on
of EPS

To discount Note Receivable on l
...


Anonymous
Excellent resource! Really helped me get the gist of things.

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