Learning Goal: I’m working on a accounting multi-part question and need the explanation and answer to help me learn.
Assignment Question(s):(Marks 15)
Q1. As a consultant for XYZ Company, a medium-sized retail business, what steps would you take to evaluate and improve its internal control procedures and safeguard its assets?(5 Marks)
Q2. XYZ Company, a retail business, is facing challenges with bad debts and wants to analyze the impact on its financial statements using the allowance method. Here are the relevant figures in Saudi riyals:(5 Marks)
Total Credit Sales: 800,000 SAR
Beginning Allowance for Doubtful Accounts: 10,000 SAR
Bad Debts Written Off: 15,000 SAR
Ending Accounts Receivable: 120,000 SAR
Bad Debts % (Estimated): 3%
- Calculate the bad debts expense for the period,
- Determine the net realizable value (NRV) of accounts receivable,
- Analyze the impact of bad debts on the financial statements, and provide recommendations to manage and reduce bad debts.
Q3. XYZ Company, a manufacturing firm in Saudi Arabia, wants to evaluate its fixed asset management using the straight-line depreciation method. Here are the relevant details in Saudi Riyals (SAR):(5 Marks)
Total Fixed Assets: SAR 1,500,000 Accumulated Depreciation: SAR 500,000
Useful Life: 10 years Salvage Value: SAR 100,000
Question: Calculate the book value and the annual depreciation expense of the fixed assets, analyze the impact of fixed assets on financial statements, and provide recommendations to optimize fixed asset management.