会计学人大出版英文版第23版Chap007.ppt

Here we see the reported accounts receivable balances for years 2009 and 2008 for both Symantec, Corp. and CA, Inc. These numbers will enable us to compute the average accounts receivables balance for both companies for 2009. In addition, net sales for both companies is given. The receivables turnover ratio is calculated by dividing net sales by average accounts receivable. When we divide Symantect, Corp.’s net sales by its average receivables balance, we get a receivables turnover of 7.7 times per year. When we divide Ca, Inc.’s net sales by its average receivables balance, we get a receivables turnover of 4.7 times per year. The average collection period is computed by dividing the number of days in a year by the receivables turnover ratio. When we divide 365 days by Symantec Corp’s receivables turnover ratio of 7.7, we get an average collection period of 47 days. When we divide 365 days by CA, Inc.’s receivables turnover ratio of 4.7, we get an average collection period of 77 days. Symantec, Corp. has a higher turnover ratio and shorter collection period than both CA, Inc. and the industry averages. Appendix 7-A: Cash Controls A bank reconciliation explains the difference between cash reported on the bank statement and cash recorded on the company’s books in its cash account. The amounts are different because of timing differences. For example the company may have written a check that reduced the cash balance on the company’s books, but the check has not cleared the bank at the bank statement date. In addition to arriving at the correct cash balance amount, a bank reconciliation will provide us with information for adjusting entries to bring the book balance of cash to the correct balance. There are two sides to a bank reconciliation. We always add the deposits in transit to the bank balance, deduct any checks outstanding at the bank statement date, and add or subtract bank errors as necessary. On the book’s side, we start with the cash ba