d)
| Cash collected from its sales during 2020 | ||
| $000 | ||
| Cash sales | 25305 | |
| Total cash collected from Account Receivables | 64715 | |
| Less: Biginning balance of account Receivable | -63613 | |
| cash coolected from Account Receivable pretaining to Fy 2020 | 1102 | |
| cash collected from its sales during 2020 | 26407 |
e)
Before issuing an invoice to the customer, we may obtain consideration based on the customer’s contract, which results in nonvoiced accounts receivable. This is counted as deferred income, representing liabilities, and you can receive $209,542,000 in 2021.
f）
Sales discounts are discounts that attract customers by offering them discounts. Discounts are usually to lower product prices or provide more services. In order to promote sales, the company provides sales bundles, and sales discounts should be determined in the sales as feasible.
Offer sales discounts on famous occasions such as Christmas to encourage customers to buy products or services on the market. These discounts not only encourage customers, but also encourage sellers to sell their products by increasing quantity and quality.
h）
Deferred contract acquisition costs $72,714,000
i）
Current Assets -$72,714,000 Gross Profit non-effect
Net Income -$72,714,000 Retained Earnings -$72,714,000
j）
Amortization is mainly used for intangible assets. Amortization will allocate costs throughout the life of the asset. The company or enterprise estimates the useful life and cost of the asset to calculate the amortization amount. The original R&D expenses are amortized and separated within three years, which is a reasonable expense separation. After the successful development of the new crown vaccine, due to the particularity of the new crown, it can accelerate the amortization of intangible assets and provide double the amortization of intangible assets.
Declining balance method: Under this method, amortization will increase year by year. Amortization will gradually decrease over the life of the asset.
In terms of amortization, because its amortization method is the expected profit period of 3 years, which is longer than the signed contract, it was originally a way to accelerate amortization, especially for vaccines. Launched to speed up revenue collection.
If assets are displayed at market prices, financial statements will be misleading. The company can write off according to the amortization schedule.
