{"id":201275,"date":"2018-09-13T22:30:24","date_gmt":"2018-09-13T22:30:24","guid":{"rendered":"http:\/\/localhost\/wordpress\/index.php\/2018\/09\/13\/acct-504-case-study-3-wang-appliance-store\/"},"modified":"2018-10-24T09:06:28","modified_gmt":"2018-10-24T09:06:28","slug":"acct-504-case-study-3-wang-appliance-store","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/acct-504-case-study-3-wang-appliance-store\/","title":{"rendered":"ACCT 504 Case Study 3 (Wang Appliance Store)"},"content":{"rendered":"<p>Construct\u00a0and\u00a0use\u00a0a\u00a0cash\u00a0budget)\u00a0Nathan\u00a0Farmer,\u00a0chief\u00a0financial\u00a0officer\u00a0of\u00a0Wang\u00a0Appliance\u00a0Store,\u00a0is\u00a0responsible\u00a0for\u00a0the\u00a0company?s\u00a0budgeting\u00a0process.\u00a0Farmer?s\u00a0staff\u00a0is\u00a0preparing\u00a0the\u00a0Wang\u00a0cash\u00a0budget\u00a0for\u00a02014.\u00a0A\u00a0key\u00a0input\u00a0to\u00a0the\u00a0budgeting\u00a0process\u00a0is\u00a0last\u00a0year?s\u00a0statement\u00a0of\u00a0cash\u00a0flows,\u00a0which\u00a0follows\u00a0(amounts\u00a0in\u00a0thousands):\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0Wang\u00a0Appliance\u00a0Store\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0Statement\u00a0of\u00a0Cash\u00a0Flows\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a02013 \ufffd \ufffd \ufffd\t \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0(in\u00a0thousands)\tCash\u00a0Flows\u00a0from\u00a0Operating\u00a0Activities\tCollections\u00a0from\u00a0customers \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0$51,000\tInterest\u00a0Received \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd500\tPurchase\u00a0of\u00a0inventory \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0(36,000)\tOperating\u00a0expenses \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd(10,200)\t \ufffd \ufffd\u00a0\u00a0Net\u00a0cash\u00a0provided\u00a0by\u00a0operating\u00a0activities \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a05,300\tCash\u00a0Flows\u00a0from\u00a0Investing\u00a0Activities\t \ufffd \ufffd\u00a0\u00a0Purchase\u00a0of\u00a0equipment \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0(3,500)\t \ufffd \ufffd\u00a0\u00a0Purchase\u00a0of\u00a0investments \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0(500)\t \ufffd \ufffd\u00a0\u00a0Sale\u00a0of\u00a0investments \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd1,000\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0Net\u00a0cash\u00a0used\u00a0for\u00a0investing\u00a0activities \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0(3,000\u00a0)\u00a0\u00a0\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\tCash\u00a0Flows\u00a0from\u00a0Financing\u00a0Activities\t \ufffd \ufffd\u00a0\u00a0Payment\u00a0of\u00a0long\u00a0term\u00a0debt \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd(400)\t \ufffd \ufffd\u00a0\u00a0Issuance\u00a0of\u00a0Stock \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a02,000\t \ufffd \ufffd\u00a0\u00a0Payment\u00a0of\u00a0cash\u00a0dividends \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0(500)\t \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0Net\u00a0cash\u00a0provided\u00a0by\u00a0financing\u00a0activities \ufffd \ufffd \ufffd \ufffd \ufffd\u00a01,000\u00a0\u00a0\u00a0\u00a0\tCash\tIncrease\u00a0(decrease)\u00a0in\u00a0Cash \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd3,300\tCash,\u00a0beginning\u00a0of\u00a0year \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a02,900\tCash,\u00a0end\u00a0of\u00a0year \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a05,900\t?\u00a0Requirements\t1.\u00a0Prepare\u00a0the\u00a0Wang\u00a0cash\u00a0budget\u00a0for\u00a02014.\u00a0Date\u00a0the\u00a0budget\u00a0simply\u00a0?2014?\u00a0and\u00a0denote\u00a0the\u00a0beginning\u00a0and\u00a0ending\u00a0cash\u00a0balances\u00a0as\u00a0?beginning?\u00a0and\u00a0?ending.?\u00a0Assume\u00a0the\u00a0company\u00a0expects\u00a02014\u00a0to\u00a0be\u00a0the\u00a0same\u00a0as\u00a02013,\u00a0but\u00a0with\u00a0the\u00a0following\u00a0changes:\ta.\u00a0In\u00a02014,\u00a0the\u00a0company\u00a0expects\u00a0a\u00a020%\u00a0increase\u00a0in\u00a0collections\u00a0from\u00a0customers\u00a0and\u00a0a\u00a030%\u00a0increase\u00a0in\u00a0purchases\u00a0of\u00a0inventory.\tb.\u00a0There\u00a0will\u00a0be\u00a0no\u00a0sales\u00a0of\u00a0investments\u00a0in\u00a02014.\tc.\u00a0Wang\u00a0does\u00a0not\u00a0plan\u00a0to\u00a0issue\u00a0stock\u00a0in\u00a02014.\td.\u00a0Wang\u00a0plans\u00a0to\u00a0end\u00a0the\u00a0year\u00a0with\u00a0a\u00a0cash\u00a0balance\u00a0of\u00a0$5,550.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Construct\u00a0and\u00a0use\u00a0a\u00a0cash\u00a0budget)\u00a0Nathan\u00a0Farmer,\u00a0chief\u00a0financial\u00a0officer\u00a0of\u00a0Wang\u00a0Appliance\u00a0Store,\u00a0is\u00a0responsible\u00a0for\u00a0the\u00a0company?s\u00a0budgeting\u00a0process.\u00a0Farmer?s\u00a0staff\u00a0is\u00a0preparing\u00a0the\u00a0Wang\u00a0cash\u00a0budget\u00a0for\u00a02014.\u00a0A\u00a0key\u00a0input\u00a0to\u00a0the\u00a0budgeting\u00a0process\u00a0is\u00a0last\u00a0year?s\u00a0statement\u00a0of\u00a0cash\u00a0flows,\u00a0which\u00a0follows\u00a0(amounts\u00a0in\u00a0thousands): \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0\u00a0Wang\u00a0Appliance\u00a0Store \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0Statement\u00a0of\u00a0Cash\u00a0Flows \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a02013 \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd \ufffd\u00a0\u00a0\u00a0(in\u00a0thousands) <a href=\"https:\/\/www.benedictsol.com\/blogs\/acct-504-case-study-3-wang-appliance-store\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-201275","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201275","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=201275"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/201275\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=201275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=201275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=201275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}