Company change the extent to which it factors or securitizes

Assignment Help Accounting Basics
Reference no: EM131001185

Search on the Internet for the 2008 annual report for Sanofi-Aventis. Find the accounts receivable footnote.

Required:

1. Sanofi-Aventis subtracts "impairment" from the gross value of accounts receivable to obtain the net value. Interpret the impairment of (€88) in 2008 in terms of how that amount would typically be described in U.S. GAAP.

2. To what extent does Sanofi-Aventis factor or securitize accounts receivable? How do you know?

3. Assume that Sanofi-Aventis decided to increase the extent to which it securitizes its accounts receivable, changing to a policy of securitizing accounts receivable immediately upon making a sale and treating the securitization as a sale of accounts receivable. Indicate the likely effect of that change in policy on:

a. Accounts receivable in the period of the change.
b. Cash flow from operations in the period of the change.
c. Accounts receivable in subsequent periods.
d. Cash flow from operations in subsequent periods.

4. Given your answers to requirement 3, could a company change the extent to which it factors or securitizes receivables to create one-time changes in its cash flow? Explain.

Reference no: EM131001185

Questions Cloud

Discuss the alternative accounting treatments : Describe the alternative methods available for companies to use their receivables to obtain immediate cash.
Plan to increase or decrease your production of nails : You are the manager of a small U. S. firm that sells nails in a competitive U. S. market (the nails you sell are a standardized commodity; stores view your nails as identical to those available from hundreds of other firms). Should you plan to increa..
Technological advance leads to lower production costs : Assume a technological advance leads to lower production costs. Show the effect this will have on national income, unemployment, inflation, and interest rates with the help of an ADAS diagram, assuming completely flexible wage rates.
Company change the extent to which it factors or securitizes : Given your answers to requirement 3, could a company change the extent to which it factors or securitizes receivables to create one-time changes in its cash flow? Explain.
Discuss the various elements of the communications process : Discuss the various elements of the communications process. Find an example of an advertising campaign being used by a company and analyze this campaign in terms of these elements of the communications process
Nominal anchor-exchange rate target-money supply target : Explain the main differences between the three main nominal anchor choices: i) Exchange Rate Target; ii) Money supply target; and iii) Inflation target plus interest rate policy. Use equations to support your answer and do not forget to describe how ..
Effect of restrictive fiscal policy on the level of output : Explain the effect of restrictive fiscal policy on the level of output, prices, and interest rates for (i) the Keynesian AS-curve case, (ii) the classical AS-curve case, and (iii) the intermediate case.
How does it fit into the life cycle of a well : Do a research about wireline in gas industry - What is the purpose of that segment? How does it fit into the life cycle of a well? What are the different services this segment provides

Reviews

Write a Review

Accounting Basics Questions & Answers

  Smith and jones each own tracts of land because of the

smith and jones each own tracts of land. because of the location of their current operations each would prefer to have

  Budgeted cash disbursements

The invoice cost for merchandise purchases represents 75% of the sales price. All purchases are paid in cash. How much are the budgeted cash disbursements for December?

  Flexible budgets flexible budgets provide different

flexible budgets flexible budgets provide different information than static budgets. discuss some of these differences.

  What effect would accepting this order have on the companys

imperial jewelers is considering a special order for 14 handcrafted gold bracelets to be given as gifts to members of a

  Calculate the predetermined overhead rate and applied

Calculate the predetermined overhead rate, calculate the overhead applied and determine the amount of overhead

  Kaleidoscope cutlery manufactureskitchen knives one of the

kaleidoscope cutlery manufactureskitchen knives. one of the employees whose job is to cut outwooden knife handles

  History of accounting regulations

Find an article in a professional/peer reviewed journal using the library (do not use just a Google search) that discusses the history of accounting regulations.

  A friend of yours says its easy to look at the statement

a friend of yours says its easy to look at the statement of cash flows and see that a company has been profitable

  They estimated overhead costs for the year to be 420000

flagler company allocates overhead based on machine hours. they estimated overhead costs for the year to be 420000.

  Payment of interest and amortization

The journal entry to be recorded at the end of the second year for the payment of interest and the amortization of discount will include a ??

  Imitability of a resource can occur through

1. The influence of globalization in managing strategically can be demonstrated in:

  Method of accounting for uncollectible accounts

Robb Corporation uses the allowance method of accounting for uncollectible accounts. During 2010, Robb had charged $80,000 to bad debt Expense, and wrote off accounts receivable of $90,000 as uncollectible.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd