Case Study: The Better Home Corporation

1) The CFO has found that the inventory levels on the balance sheet look to be significantly higher than expected given the company's performance in sales. The inventory level is therefore higher than anticipated. When the accounting department looked at the company's sales statistics, they saw that revenues had been declining over the course of the preceding year. However, the company's inventory levels remain unchanged. This shows that the company may be retaining more inventory on hand than necessary, which could be a sign of ineffective management. 2) The CFO also wants to make sure that the company's financial reporting is accurate and in conformity with accounting laws, thus the rising accounts payable balances are another concern. The company should regularly review the balances of its accounts payable to ensure that payments are made on schedule. The company might wish to consider implementing an accounts payable ageing report to keep track of when payments are received to vendors. 3) The inventory record should be physically maintained by the company. The business should prepare revenue and expense forecasts that take account of the receivables status.

1)Given the company's sales success, the CFO has discovered that the inventory levels on the balance sheet appear to be substantially greater than anticipated. This means that the inventory level is higher than it is expected. The accounting division examined the company's sales data and discovered that throughout the previous year, revenues had been dropping. The company's inventory levels haven't changed though. This suggests that the business might be keeping extra inventory on hand, which could be an indication of poor management or inefficiency. 2) The company's rising accounts payable balances are another issue for the CFO, who also wants to make sure that the company's financial reporting is correct and in accordance with accounting rules. To make sure that payments are made on time, the business should frequently examine the balances of its accounts payable. To keep track of when payments are made to suppliers, the business might want to think about adopting an accounts payable ageing report. 3) the company should physical maintain the record of inventory. The company should make forecast plans of revenue and expenses with position of receivables.

1. The case study indicates that business is more focused on inventories than on sales because they have a large number of inventories on hand which is a key problem as it leads to dropping of sales over the past years. 2. To improve the account payable turnover , the company should regularly monitor and check the account payable balances and improve their inventory management to not keep excess inventory on hand. They should also implement account payable dating report to keep track of payments made. 3. The company should stay updated with the technology to ensure accuracy in financial report and also collect and organize information regularly. Company should also keep track of it's excess inventory and accounts receivable and payables turnover. They should find ways to improve workflows. Moreover, they should also keep track of the operating environment in the company to ensure financial accuracy.

1. The serious issue is that they have such countless things close by. Growing record payable adjusts are an indication of terrible administration since they show that an organization is keeping up with more stock because of lower deals. Furthermore, the business generally disapproves of ideal leaser installments. This shows that the business focuses on reserves over deals. The serious issue is that they have such countless things available. Growing record payable adjusts are an indication of terrible administration since they show that an organization is keeping up with more stock because of lower deals. 2. The business can assess the equilibriums in its records, screen its payable consistently, and deal with its installment troubles to further develop its record payable. The business might utilize a record payable maturing report to monitor installments and plan out when to make them. To monitor installment cutoff times, the organization could likewise utilize late reports. 3. By trying the accompanying proposal and inspecting the stock level and record payable adjusts of better organization The organization ought to contribute the work important to remain current with monetary innovation programming and frameworks.

Potential Issues and Challenges The CFO of the Better Home Corporation discovered that the company had ordered too much inventory, resulting in a high inventory level on the balance sheet that appears to be higher than anticipated. The challenge of overcoming the fact that the company's inventory levels remained unchanged despite a decline in sales from previous years posed a risk of high storage costs. As this level of mismanagement can result in over- or under-stocking as well as inefficiencies in the supply chain, it becomes clear that poor forecasting was also the primary cause of the aforementioned difficulty. During the review of the accounts payable section, it was discovered that Better Home Corporation's payable balances have significantly increased over time. This could indicate a problem paying bills on time or a delay in payments from the company to its suppliers.