E1-5 Cougar Company

As the Chief Financial Officer of Marysville General Hospital, I have informed the hospital board members, that the accounts receivable has quickly approached the 100th day mark. The accounts receivable had crept from the 70-80 day range within the past few months, which is greater than the average of 55 days. There are many factors that could be a potential reason as to why the hospital accounts receivable days are rising, however, collectively the board members will create a plan of action that will bring the accounts receivable days back in line. It will take cooperation from everyone including the board members, medical staff, clinical departments, health information management, business office, and many others. Therefore, each of these departments will be involved in devising a solution to reduce the accounts receivable crisis.

1a. One potential goal of earnings management is income smoothing. Briefly discuss why income smoothing might be a goal of management, including a discussion of incentives to smooth income. What techniques might be used to accomplish income smoothing beyond the selection of depreciation and inventory costing alternatives?

According to the fact of this case, Parent Co. (Parent) wholly owns Poor Son Co. (Poor Son) as a legal subsidiary, and both of them all nonpublic companies. However, in January 2007 Poor Son filed a voluntary bankruptcy under Chapter 11 of the U.S. bankruptcy code because of its inability of meet obligations as they became due. Then, Parent claimed the loss of control of Poor Son and deconsolidated Poor Son from its financial statement. Through the bidding process in May 2009, Poor Son and OtherCo, the winning sponsor, filed a joint plan of reorganization to the bankruptcy court, but the plan was rescinded by OtherCo later due to significant market value shrink of Poor Son. After that, the

Mr. Wayne, CFO, provided the following information based on experience and management policy. All sales are credit sales and are billed the last day of the month of sale. Customers paying within 10 days of the billing date may take a 2 percent cash discount.

3. Out in the business world almost all projects are completed by some type of team or collaborative group of individuals. At the University of Phoenix, you will gain experience with project collaboration in a safe and supportive environment. These skills will carry you through teamings and collaborations on future real world’s projects where success may mean more pay, a promotion, or another major reward or compensation. To assist in the areas involved in teamwork and team building the University of Phoenix provides you with the Learning Team Toolkit. This Learning Team Toolkit is your gateway to materials that will help you achieve greater professional competence as a member and leader of work teams. Go to the Library tab in your student portal and select the link, Read all Aspects of Teamwork located on the right side of the webpage under Learning Team Toolkit. Then, under the category Toolkit Essentials, open the Learning Team Handbook and select which Purpose for Learning Team Benefits is listed.

Direct materials price variance = $10,500 U Direct materials efficiency variance = $5,000 U Total direct materials variance = $15,500 U

Using your accounting and business knowledge, please discuss the following phrase in 3-4 double spaced pages (excluding the cover and reference pages).

18. If a resource has been consumed but a bill has not been received at the end of the accounting period, then

Often the lump-sum or basket purchase includes assets with different lives that must be depreciated separately. Sometimes the purchase may include land, which is never depreciated.

An outer evaluator surveys an organization 's money related reporting procedures to authenticate that the monetary articulations decently and precisely speak to operational results and fit in with sound accounting standards. The review procedure gives a sensible, irrefutable reason for the evaluators ' supposition with respect to the budgetary explanations. A review arranges depicts the different methods that will be utilized and the reason for those systems. While administration is in charge of introducing the budgetary explanations, the reviewer is in charge of bearing witness to the measure of hazard saw in connection to any conceivable material misquote in the money related articulations gave. The accompanying is a review get ready for Keystone Computers and Networks, Inc.

The primary objectives of accounting is to keep track of transactions and recording revenue and expenses are important business processes often assigned to an accounting department or a financial manager. Accounting is a business discipline that allows companies to record analyze and retrieve critical financial information that can be used to determine a company's financial status and provide reports and insights needed to make sound financial decisions.

34. If a resource has been consumed but a bill has not been received at the end of the accounting period, then

The economic interest theory of regulation assumes that regulation is created to benefit the private interests of particular groups but at the expense of the general public. The economic assumption is that people will seek to advance their own self-interest above any others and will do so rationally (Deegan 2006). For example, Levine (2006) states that airline regulation has often been used as a good example of economic interest theory. The airline industry was a competitive industry which was subjected to price and entry regulation

thus minimizing the amount of currency that the Company has on hand at any point in time during the week. Additionally, the use of the bank on the daily basis facilitates the control of cash because it creates a double record of all bank transactions - one by the Company and one by the bank. Also we recommend that all receipts be deposited in the

Operating Cash at $39,019K (includes short term Investments of $21,451K) decreased from the previous month by $1,289K. Patient cash collections in April were $12.0M and short of the $12.2M target. “Investments at Market” increased by $190K from the previous month. Total Days Cash on Hand decreased by 7.9 days to 196.2 from March’s 204.1. Net AR days increased 0.1 days to 48.3 from March’s 48.2 days.