Hello would you please help me to answer the question of my professor with regards on accounting. Please see below question and kindly see the attached file for your references Lesson 1 QUESTION 1 . Why should collection of receivables be handled properly? 2 . Beta company proposes to improve its collection performance. It intends to increase its level of collection expenses from P150,000 to P250,000 on sales of P10 million. This move is expected to cut debt losses by one per cent. Also turnover of receivables is expected to increase from 10 to 12 times per year. Should the firm go ahead with its plan? Support your answer. Lesson 2 QUESTION 1 . What are reasons why inventory should be properly managed? 2. A certain appliance store has the following items in its inventory. Item No. Price Quantity Cost 201 P 150 200 P 20,000 202 350 150 40,000 203 500 120 10,000 204 1,000 80 50,000 205 3,000 50 100,000 206 5,000 35 40,000 207 8,000 25 40,000 208 15,000 20 40,000 209 25,000 12 210 50,000 8 Classify the items in top “A”, “B” and “C” items and then perform the so-called ABC Method of Inventory Control. 3. A local gift shop wants to know how many sets of a certain gift items to order. The manager of the store feels that gift item would sell for about 1,000 sets next year. At a [price of P250 per set. The wholesale price of that item is P200 per set. The costs of carrying one set of that gift item is calculated to be P200 per year, while the ordering costs are placed at P200. A. How many sets should be the gift shop order pursuant to the Economic Order Quality Method? B. What would be the inventory costs of that item per year, if the gift shop bought or ordered that much quantity that you determined in 3-a? Lesson 3 1 . Is it possible for a business to operate without working capital? Explain your answer. 2 . Supposing the normal capital requirement of a certain business is two months costs and expenses, while the working capital of that business is good to cover six months costs and expenses, is this “good ” for the business? Explain your answer. 3 . The current asset and current liabilities portion of the balance sheet of ABC Company as of December 2012 are shown below (in thousands): Current Assets Current Liabilities Cash P100 Accounts Payable P200 Accounts Receivable 200 Loans Payable 300 Marketable Securities 150 Accruals 100 Mdse. Inventories 550 Total Current Assets P1,000 Total Current Liabilities P600 The firm’s Income Statement for the year ending 31 December 2012 is also shown (in thousands): Sales P 3,000 Less Cost of Sales 1,700 Gross Profit 1,300 Less Operating Expenses 800 Net Profit before tax P 500 Calculate the following: a .The amount of gross working capital b . The net working capital c . The length of time that the net working capital can provide for the firm’s cost and expenses d. If the normal operating/working capital required for the firm’s kind of business is one and half months, is the firm’s working capital position good or bad? Explain your answer. 4. Visit two firms who are engage in different lines of business and interview them as to their working capital policy. Do they maintain the same or practically the same policy on working capital? What could be the reason or reasons for this? Thank you and looking forward. ATTACHMENT PREVIEW Download attachment Lesson 2 fin man.docx LESSON PLAN ACCOUNT RECEIVABLE MANAGEMENT SPECIFIC OBJECTIVES At the end of the lesson, you should be able to: DISCUSSION Accounts receivables arise out credit sales. The amount of investment in account receivables is determined largely by the nature of the business. A large grocery store, a department store or a drugstore would probably be selling on cash basis, while a construction supply store, lumber and hardware store would be probably be selling on cash basis, while a construction supply store, lumber and hardware store would probably sell on term basis. Consequently, the nature of the business tends to determine the prop