accounting assignment

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snebhd24

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I have an excel file for an assignment that the prof. have not put any instructions on it. but i do have some notes on the file

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2015 To record issue To record secured note to shareholder 3 Issue blend of debt and equity totallin To record Amortize/dpr Note Receivable Professional Service Revenue To record 6-Year note @ In Exchange for Professional Service Re To record purchase of To record sale of 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 da 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. 2016 Total Income Statement 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 1) 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 1) 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 outsid and discuss this firm''s strategy for rai Forecast Actual Analyze and discuss options for transactions listed below: 1. Blend of debt and equity (transaction #2) a. Impact on Balance Sheet b. Impact on Financial Ratios c. Impact on Altman Z-Score d. What is the 'cost' of maintaining a 300.000 e. How would key ratios and Z-Score be affected if threshold were reduced to f. Impact on stock price, market capitalization 2. Decision to assign receivables (transaction # 8) a. Impact on Working Capital b. Impact on dividend potential c. Cost/benefit trade-off of converting Receivables to immediate cash 3. Impact of script dividend (transaction #10) a. Alt Z Score impact b. Cost/benefit considerations c. Discuss effect of changing % of EPS on (a) and (b) above 4. Impact of discounting note receivable at end of Year 1 a. Balance Sheet impact b. Discount costs vs. cash requirements (reference 1d above) 5. Amount of the 2016 Cash Dividend 6. Effect of 2016 Stock Dividend a. Permenant effect on Retained Earnings b. Alt Z impact c. Impact on Cash Flow ratios 750 shares @ 10 par 180 mkt cord secured note to shareholder year note blend of debt and equity totalling 45000 5% annual 180.000,00 40000 Note @ 5 years ddb 0,07 annual on equipment purchase 95000 essional Service Revenue cord 6-Year note @ 0,09 change for Professional Service Revenue 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 received on subscriptions 300 144 30000 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 Assigned receivables cord receipt of 70000 cord purchase of cord sale of Equipment 1 Receivables 110 Treasury shares 38000 7/25/2016 cord sale of 70 Treasure shares 70000 Cash cord declaration of 192 205 dividend 0,1 stock dividend @ 205 unts Receivable Aging Summary 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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