Accounts Payable/Receivable
What element is Accounts Payable on the Balance Sheet?
This superhero's real name is Peter Parker.
Spider-Man
How is the Historical Cost of a Non-Current Asset calculated?
Purchase invoice (exc. GST) plus additional costs to get the asset in location and ready to use
How many students are in pre 9?
35
Sales - Sales returns - Costs of Sales=
Gross Profit
What is the Accounts Receivable Turnover formula?
Avg. Accounts Receivable / Net Credit Sales x 365
This Amazonian warrior princess is known for her strength, her Lasso of Truth, and her invisible jet.
Wonder Woman
What accounting element is depreciation expense ?
Expense
What is SIFLS treasure animal?
Peacock
Gross Profit- Inventory Loss/Gain =
Adjusted Gross Profit
Comment on the Accounts Receivable turnover
2020: 28 days
2021: 29 days
2022: 32 days
The accounts receivable turnover is increasing which is not good for the business. This means that suppliers are taking longer to pay off their obligation to the business and reduces the cash flow of the business
This Marvel superhero is also the King of Wakanda.
Black Panther
A new van was purchased for $20,100 (excl. GST). The van is estimated to have a useful life of 6 years and a residual value of $1,500.
Calculate annual Depreciation expense for the van.
= C - RV / 6
= 20,100 - 1,500 / 6
= $3,100
When is Abeo's birthday?
September 10
What is the last line of an Income Statement?
Net Profit (Loss)
Comment on the business accounts payable turnover. Provide a positive and negative of this figure
2020: 32 days
2021: 30 days
2022: 25 days
Trend: decreasing turnover
Positive: building positive relationships with suppliers as we are paying them back quicker and getting a discount
Negative: We could use the full 30 days to pay off other obligations as we dont need to pay back all our suppliers quickly
This group of superheroes from Marvel is known for its members including Captain America, Iron Man, and Thor.
The Avengers
What is the difference between a tangible and an intangible non-current asset
a tangible asset has physical substance (like buildings or machinery), while an intangible asset lacks physical form (like patents or goodwill)
When has SIFLS cooperated with the Education Bureau of Australia and adopted the VCE program?
In 2008
Where does the Net Profit(loss) go on the Balance Sheet?
Owners Equity
Discuss the impacts on profitability and one strategy that the business could improve to improve profitability from all three trends:
2020:
Bad Debts $2000
Sales returns 2% of sales
Accounts Receivable 28 days
2021:
Bad Debts $2400
Sales Returns 3% of sales
Accounts Receivable: 29 days
Profitability is impacted by increasing bad debts (expense), increasing sales returns (expense). This means that net profit is decreasing
Strategy: improve credit terms, improve quality of product and follow up more with emails to suppliers
This supervillain from Marvel is obsessed with collecting the Infinity Stones.
Thanos
How is amortization similar to and different from depreciation?
both amortization and depreciation involve the allocation of the cost of an asset over its useful life, but depreciation applies to tangible non-current assets, while amortization applies to intangible assets?
What is George's favourite sport?
Table tennis
Bad Debts, Wages and Depreciation Expense are found where in an Income Statement?
Other Expenses