What might ronald do to alleviate this cash crunch

Assignment Help Accounting Basics

Reference no: EM13138409

Ronald Distributors is a growing company whose ability to raise capital has not been growing as quickly as its expanding assets and sales. Ronald's local banker has indicated that the company cannot increase its borrowing for the foreseeable future. Ronald's suppliers are demanding payment for goods acquired within 30 days of the invoice date, but Ronald's customers are slow in paying for their purchases (60-90 days). As a result, Ronald has a cash flow problem.

Ronald needs $1,215,650 to cover next Friday's payroll. Its balance of outstanding accounts receivable totals $1,277,000. What might Ronald do to alleviate this cash crunch?

Record the entry that Ronald would make when it raises the needed cash. (Assume a 3% service charge.)

Reference no: EM13138409

Questions Cloud

Finding out coding gain of a dsss-cdma transmitter : Evaluating Coding Gain, CNR, and BER of a DSSS-CDMA Transmitter, a. A DSSS-CDMA transmitter sends message signals at a rate of 5.0 kbps using a long chip sequence with a rate of 1 M chips per second. In the receiver, what is the processing gain (a..

What was the amount of raw materials used during quarter : What was the amount of Raw Materials used during this quarter?

Incedence of international terrorism : To what extent does realist theory help to explain the incedence of international terrorism What specific should be developed?

What is willis ebitda coverage ratio : It has $2 billion in lease payments and @1 billion must go toward principal payments on outstanding loans and long term debt.What is willis EBITDA coverage ratio?

What might ronald do to alleviate this cash crunch : Ronald needs $1,215,650 to cover next Friday's payroll. Its balance of outstanding accounts receivable totals $1,277,000. What might Ronald do to alleviate this cash crunch?

When a company acquires an affiliated company debt : When a company acquires an affiliated company’s debt instruments from a third party, how is that gain or loss on extinguishment

Developing standards for products : Harnish Corporation is developing standards for its products. One product requires an input that is purchased for $55.00 per kilogram from the supplier. By paying cash, the company gets a discount of 8% off this purchase price.

Externalities and implementation problems : 2 page of Externalities and Implementation Problems regarding providing tax incentives to wind farms. (scholarly source based).

Customer number : Inputs continue until the last item in the right column when you need to record your first output, "Customer Number". Most outputs appear in the bottom row of the SAP screen immediately after processing and disappear once you proceed.

User Account

All Pages