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##### ACC - Problem 1 & 2 Sherwin-Williams

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Question;Problem #1;As the struggling owner of a new restaurant, you;suffer from a habitual shortage of cash.;Yesterday the following invoices arrived;Vendor Face Amount Terms;Cornation Produce \$ 600 n/30;John?s Fisheries 1,000 1/10, n/45;Garcia Equipment 2,000 2/10, n/60;1. Write out the exact meaning of each of;the terms.;2. You can borrow cash from the local bank on a note bearing an;annual interest rate of 12%. Should you;borrow to take advantage of the cash discounts offered by the last two;vendors? Why? Show computations. For interest computations, assume a360-day year.;3. Prepare the journal entry from Garcia Equipment?s standpoint;if you were to pay the amount due within the discount period.;Problem #2 Sherwin-Williams (obtain 2013 annual report;or 10k online?review financial statements and notes);1. What is the amount ofgross accounts receivable at fiscal;year-end 2013?;2. Suppose that;write-offs of accounts receivable during fiscal year 2013 amounted to \$6K;there were no reinstatements, and all sales during 2013 were on credit.;(a) Prepare the journal entry to record bad debt;expense during 2013.;(b) Determine cash collected from customers during;2013.;3. What;inventory costing method(s) does Sherwin-Williams use for financial reporting?;4. Calculate inventory turnover for fiscal year 2013 (use total;reported inventory).;5. Compute the;amount of ?Work-in-process and raw materials? transferred to finished goods;during 2013.;6. What is the;LIFO reserve at fiscal year-end 2013?;7. What method;of depreciation does Sherwin-Williams use for its PPE?;8. How much was;depreciation expense during 2013?;9. Was any PPE;sold during 2013? How do you know?

Paper#41873 | Written in 18-Jul-2015

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