ADM 1340 Lecture Notes - Lecture 8: Income Statement, Operating Expense, Promissory Note
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21 Apr 2016
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Document Summary
Identify the types of receivables and record accounts receivable transactions. Apply the principles of sound accounts receivable management. The term receivables refer to amounts that are due to a business from customers or other. Receivables are frequently classified as: accounts receivable, notes receivable, other receivables (interest receivable, loans to company officers, advances to employees, and recoverable sales taxes and income taxes) Result from the sale of goods and services. Expected to be collected within 30 days. Usually the most significant type of claim held by a company. Textbook question be 8. 2: july 1 accounts receivable 42,000. Merchandise inventory 30,000: july 8 sales returns and allowances 72,000. Cost of goods sold 4,320: july 9 cash (34,800 696) 34,104. A receivable is recorded when service is provided on account or at point of sale of. The customer takes advantage of a sales discount. Losses from these uncollectible accounts are debited to an account called bad debts.
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Related Questions
| 1. We are trying to reduce our debt. How would you recommend modifying the cash flow (increase or decrease) in each of the three activities: (1) operating activities, (2) investing activities, and (3) financing activities? Explain. 2. We are trying to improve our operations by increasing cash flow in one of the three activities: (1) operating activities, (2) investing activities, or (3) financing activities. Which one of the three activities would you recommend, and why? Account name | |||
| CASH FLOWS FROM OPERATING ACTIVITIES | 2017 Q3 | 2017 Q2 | 2017 Q1 |
| Net income | $ 121,234.00 | $ 73,739.00 | $ 28,744.00 |
| Adjustments to reconcile net income to net cash provided by operating activities | |||
| Depreciation and amortization | $ 9,215.00 | $ 6,120.00 | $ 3,070.00 |
| Loss (gain) on disposal of assets | $ 32.00 | $ 4.00 | _ |
| Provision for bad debts, net | $ 1,796.00 | $ 916.00 | $ 561.00 |
| Non-cash stock compensation and other charges | $ 20,369.00 | $ 6,809.00 | $ 3,681.00 |
| Non-cash interest and other (income) loss | $ (451.00) | $ (274.00) | $ (301.00) |
| Deferred income taxes | $ 44,777.00 | $ (1,446.00) | $ (1,900.00) |
| Equity in net losses from unconsolidated joint ventures, less distributions received | $ 4,278.00 | $ 3,543.00 | $ 2,386.00 |
| Changes in assets and liabilities, net of acquisition | |||
| Receivables | $ (47,520.00) | $ (40,673.00) | $ (11,365.00) |
| Advances to/from marketing and reservation system activities, net | $ 43,697.00 | $ 17,407.00 | $ (216.00) |
| Forgivable notes receivable, net | $ (21,443.00) | $ (14,108.00) | $ (4,483.00) |
| Accounts payable | $ 19,679.00 | $ 18,955.00 | $ 9,203.00 |
| Accrued expenses and other current liabilities | $ (11,540.00) | $ (11,286.00) | $ (25,048.00) |
| Income taxes payable/receivable | $ (20,114.00) | $ 5,629.00 | $ 13,012.00 |
| Deferred revenue | $ 3,650.00 | $ 2,061.00 | $ 12,579.00 |
| Other assets | $ (1,162.00) | $ (1,764.00) | $ (4,958.00) |
| Other liabilities | $ (1,578.00) | $ (1,524.00) | $ (751.00) |
| Net cash provided by operating activities | $ 165,019.00 | $ 64,108.00 | $ 24,214.00 |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Investment in property and equipment | $ (17,514.00) | $ (10,687.00) | $ (4,718.00) |
| Investment in intangible assets | $ (2,376.00) | $ (2,228.00) | $ (2,088.00) |
| Proceeds from sales of assets | _ | _ | |
| Business acquisition, net of cash acquired | _ | _ | |
| Contributions to equity method investments | $ (44,876.00) | $ (42,127.00) | $ (31,610.00) |
| Distributions from equity method investments | $ 4,307.00 | $ 1,696.00 | $ 501.00 |
| Purchases of investments, employee benefit plans | $ (2,140.00) | $ (1,736.00) | $ (1,424.00) |
| Proceeds from sales of investments, employee benefit plans | $ 2,150.00 | $ 2,084.00 | $ 843.00 |
| Issuance of mezzanine and other notes receivable | $ (18,565.00) | $ (14,977.00) | $ (9,863.00) |
| Collections of mezzanine and other notes receivable | $ 630.00 | $ 552.00 | $ 522.00 |
| Acquisitions of real estate | _ | ||
| Other items, net | $ 109.00 | $ 110.00 | $ (4.00) |
| Net cash used by investing activities | $ (78,275.00) | $ (67,303.00) | $ (47,832.00) |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Net (repayments) borrowings pursuant to revolving credit facilities | $ (39,974.00) | $ 23,200.00 | $ 22,800.00 |
| Principal payments on long-term debt | $ (484.00) | $ (309.00) | $ (153.00) |
| Purchases of treasury stock | $ (8,887.00) | $ (7,414.00) | $ (7,271.00) |
| Dividends paid | $ (36,483.00) | $ (24,333.00) | $ (12,139.00) |
| Debt issuance costs | _ | ||
| Proceeds from transfer of interest in notes receivable | $ 24,237.00 | $ 23,200.00 | _ |
| Proceeds from exercise of stock options | $ 9,799.00 | $ (309.00) | $ 4,963.00 |
| Net cash used by financing activities | $ (51,792.00) | $ (2,266.00) | $ 8,200.00 |
| Net change in cash and cash equivalents | $ 34,952.00 | $ (5,561.00) | $ (15,418.00) |
| Effect of foreign exchange rate changes on cash and cash equivalents | $ 1,433.00 | $ 955.00 | $ 427.00 |
| Cash and cash equivalents at beginning of period | $ 202,463.00 | $ 202,463.00 | $ 202,463.00 |
| Cash and cash equivalents at end of period | $ 238,848.00 | $ 197,957.00 | $ 187,472.00 |
| Supplemental disclosure of cash flow information: | |||
| Cash payments during the period for: | |||
| Income taxes, net of refunds | $ 31,254.00 | $ 30,813.00 | $ 1,454.00 |
| Interest, net of capitalized interest | $ 41,119.00 | $ 21,206.00 | $ 19,874.00 |
| Non-cash investing and financing activities: | |||
| Dividends declared but not paid | $ 12,167.00 | $ 12,133.00 | $ 12,195.00 |
| Investment in property and equipment acquired in accounts payable | $ 758.00 | $ 895.00 | $ 724.00 |
| Non-cash sale of investment of unconsolidated joint venture | _ | _ | _ |