Mike Horn Corporation Athletic-Wear Retailers Assignment
Order ID:89JHGSJE83839 Style:APA/MLA/Harvard/Chicago Pages:5-10 Instructions:
Mike Horn Corporation Athletic-Wear Retailers Assignment
Question Description
Mike Horn Corporation manufactures sweatshirts for sale to athletic-wear retailers. The following information was available for Horn for the years ended December 31, 2011 and 2012.
December 31, December 31,
2011 2012
Cash $ 20,000 $ 15,000
Accounts receivable 40,000 ?
Allowance for doubtful accounts 5,500 ?
Inventories 85,000 80,000
Current liabilities 80,000 86,000
Total credit sales 480,000 550,000
Collections on trade accounts receivable 440,000 500,000During 2010, Horn had the following transactions.
1. On June 30, sales of $50,000 to a major customer were settled, with Horn accepting a 1-year $50,000 note bearing 11% INTEREST, payable at maturity.
2. 2. Horn factors some accounts receivable at the end of the year. Accounts totaling $47,700 are transferred to First Factors, Inc. with recourse. First Factors will receive the collections from Horn customers and retain 6% of the balances. Horn is assessed a finance charge of 4% on this transfer. The fair value of the recourse obligation is $4,000.
3. 3. On the basis of the latest available information, the 2010 provision for bad DEBTS is estimated to be 0.8% of credit sales. Horn charged off as uncollectible, accounts with balances of $2,300.
– Based on the above transaction, determine the balance for Trade Accounts Receivable and the Allowance for Doubtful Account on December 31, 2010.
– Prepare the current assets section of Horn’s balance sheet at December 31, 2010. The cash balance at December 31, 2010, reflects the following items; checking account $9600; postage stamps $100; petty cash $300; CURRENCY $3000; customers checks (post dated) $2000.
– Compute the current ratio and the receivables turnover ratio for Horn at December 31, 2010. Use these measures to analyze Horn’s liquidity. The receivables turnover ratio in 2009 was 10.37.
– Discuss how the analysis above would be affected if Horn had transferred the receivables in a secured borrowing transaction.
RUBRIC
Excellent Quality
95-100%
Introduction 45-41 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Literature Support
91-84 points
The background and significance of the problem and a clear statement of the research purpose is provided. The search history is mentioned.
Methodology
58-53 points
Content is well-organized with headings for each slide and bulleted lists to group related material as needed. Use of font, color, graphics, effects, etc. to enhance readability and presentation content is excellent. Length requirements of 10 slides/pages or less is met.
Average Score
50-85%
40-38 points
More depth/detail for the background and significance is needed, or the research detail is not clear. No search history information is provided.
83-76 points
Review of relevant theoretical literature is evident, but there is little integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are included. Summary of information presented is included. Conclusion may not contain a biblical integration.
52-49 points
Content is somewhat organized, but no structure is apparent. The use of font, color, graphics, effects, etc. is occasionally detracting to the presentation content. Length requirements may not be met.
Poor Quality
0-45%
37-1 points
The background and/or significance are missing. No search history information is provided.
75-1 points
Review of relevant theoretical literature is evident, but there is no integration of studies into concepts related to problem. Review is partially focused and organized. Supporting and opposing research are not included in the summary of information presented. Conclusion does not contain a biblical integration.
48-1 points
There is no clear or logical organizational structure. No logical sequence is apparent. The use of font, color, graphics, effects etc. is often detracting to the presentation content. Length requirements may not be met
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