Create a rea model using the revenue cycle

Reference no: EM131972309

Problem

Sales Orders are received from customers via the web site and reviewed by a sales clerk. A meal preparation employee pulls the necessary ingredients from the stock of fresh organic food maintained by Freshius and the order is prepared for shipping. If some items for the meal kit are not available or not fresh, the order is held until it can include all items and in top high quality. In the Shipping Department the order is checked and then shipped to the customer.

Customers make payments based on each shipment or invoice, which is due 30 days from the invoice date. Some customers however may send in one payment for multiple invoices. All customer receipts are processed by a cash receipts clerk and then deposited on a daily basis in the checking account.

Create a REA Model using the revenue cycle with the information given above.

Reference no: EM131972309

Questions Cloud

What would sallys taxable income be : Sally, age 45, single, no dependents, has wages of $55000 in 2017. What would Sally's taxable income be if Sally contributed $5,000 to a deductible IRA in 2017?

Determining the lower the monthly payments : How much longer (in months) will it take you to repay this loan than you had originally planned?

Possibly reduce its economic exposure to exchange rate risk : If it borrows yen, it will be exposed to exchange rate risk. How can CRI borrow yen and possibly reduce its economic exposure to exchange rate risk?

Annual rate of returns : Assume no dividends paid and the AAR and GAR are based on annual rate of returns. (round to the nearest $1 and show your answer like this $394)

Create a rea model using the revenue cycle : Sales Orders are received from customers via the web site and reviewed by a sales. Create a REA Model using the revenue cycle with the information given above.

What is your best estimate of mimcs wacc : Industrial Machineries Corporation (MIMC) has a pre-tax cost of debt of 7.6 percent, beta of 1.5 and cost of preferred stock of 8.5 percent.

What would you say to the students that accompany your brief : what would you say to the students that accompany your brief and concise bullet points? Although not required, if you have access to a mic

How much is sally inheritance worth today : When Sally turns 30 years old, she will receive $10,000 per year for 10 years. How much is her inheritance worth today, assuming money earns 7% annually?

Understand the uncertainty of future cash flow : There are many possible cash flow outcomes for any risky project, describe one that can be used to better understand the uncertainty of future cash flow

User Account

All Pages