Financial data for a company is provided below:Cash, end of year, $500,000Estimation of yearly cash expenses from negative cash flows from operations on statement of cash flows, $ (155,000) Cash, beginning of year, $400,000Accounts receivable, $10,000Inventory, $20,000Net Income for the yearHow many months will the company be able to continue without positive cash flows or additional financing (round to nearest whole month) ?12 months25 months39 months16 months
The Ace Company is affected by the following contingencies at the end of 2015: 1) Ace's legal counsel has concluded that it is probable that the company will be required to pay damages of $400,000 in a lawsuit. 2) Expropriation of Ace's foreign assets, valued at $3,000,000, appears reasonably possible. 3) Ace's controller estimates that $30,000 of the company's receivables are likely to be uncollectible, and will require Ace to honor the amounts. 4) It appears remotely possible that a major customer will be unable to repay a note to Ace for $100,000. What total amount should Ace accrue for loss contingencies in 2015? A. $430,000 B. $3,400,000 C. $3,430,000 D. $530,000
