A.
Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdraw, discount, sales. Cash and its equivalent mean items which have liquidity in market. Liquidity means the asset of the company which can be sold in market at reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company.
To determine: Computation of cash and cash equivalents, percentage, Days’ sales uncollected, collection of receivables.
A.
Answer to Problem 3FSA
For current year total current asset is 15.9%, total assets is 12.2%, total current liabilities is 58.7% , total shareholder equity is 16.6%, for previous yeartotal current asset is 12.8%, total assets is 9.3%, total current liabilities is 63.5% , total shareholder equity is 17.9%
Explanation of Solution
Sr. | Particulars | Current Year | Prior Year |
A. | Cash | 32,111,442 | 22,636,744 |
B. | Accounts receivables | 27,800,408 | 28,520,689 |
C. | Current assets | 141,429,704 | 124,814,725 |
D. | Total current assets | 201,341,554 | 175,972,158 |
E. | Total assets | 262,174,324 | 242,179,521 |
F. | Current liabilities | 54,704,095 | 50,502,909 |
G. | Shareholder equity | 192,963,033 | 179,059,805 |
H. | Net sales | 201,866,745 | 200,653,482 |
Cash and cash equivalent as a percentage oftotal current asset for current year:
Cash and cash equivalent as a percentage of total current asset for prior year:
Cash and cash equivalent as a percentage of total asset for current year:
Cash and cash equivalent as a percentage of total asset for prior year:
Cash and cash equivalent as a percentage of total current liabilities for current year:
Cash and cash equivalent as a percentage of total current liabilities for prior year:
Cash and cash equivalent as a percentage of equity shareholders for current year:
Cash and cash equivalent as a percentage of equity shareholders for prior year:
B.
Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdraw, discount, sales. Cash and its equivalent mean items which have liquidity in market. Liquidity means the asset of the company which can be sold in market at reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company.
To determine: Computation of cash and cash equivalents, percentage, Days’ sales uncollected, collection of receivables.
B.
Answer to Problem 3FSA
Percentage change of cash balances for current year and prior year is41.8%
Explanation of Solution
Percentage change of cash balances for current year and prior year is:
C.
Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdraw, discount, sales. Cash and its equivalent mean items which have liquidity in market. Liquidity means the asset of the company which can be sold in market at reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company.
To determine: Computation of cash and cash equivalents, percentage, Days’ sales uncollected, collection of receivables.
C.
Answer to Problem 3FSA
Explanation of Solution
Account receivables account for prior year is:
Particulars | Amount | Particulars | Amount |
To Balance b/d | - | By Cash A/C |
|
To Sales |
| By balance c/d |
|
Total |
| Total |
|
Sales for the year-
(-) Cash collected during the year- (
Uncollected sales
Account receivables account for current year is:
Particulars | Amount | Particulars | Amount |
To Balance b/d |
| By Cash A/C |
|
To Sales |
| By balance c/d |
|
Total |
| Total |
|
Sales for the year-
(-) Cash collected during the year- (
Uncollected sales
D.
Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdraw, discount, sales. Cash and its equivalent mean items which have liquidity in market. Liquidity means the asset of the company which can be sold in market at reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company.
To determine: Computation of cash and cash equivalents, percentage, Days’ sales uncollected, collection of receivables.
D.
Answer to Problem 3FSA
There is a favorable change in collection of account receivables.
Explanation of Solution
Particulars | Current Year | Prior Year |
Sales for the year |
|
|
Less: Cash collected during the year |
|
|
Percentage |
|
|
As per the increase in percentage for cash collection is seen. So, there is a favorable change in collection of account receivables.
Want to see more full solutions like this?
Chapter 6 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
- Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.arrow_forwardSuppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands). Cash Accounts receivable Inventory Other current assets Total current assets Total current liabilities 2022 Current ratio $13,057 25,199 29,385 19,579 $87,220 $249,200 2021 2022 $8,124 19,231 31,244 10,746 Compute the current ratio for each year. (Round answers to 2 decimal places, e.g. 2.12.) $69,345 $301,500 :1 2021 :1arrow_forwardCalculate the following financial ratios for Phone Corporation: (Use 365 daysin a year. Do not round intermediate calculations. Round your finalanswers to 2 decimal places.)1. Return on Assets (use average balance sheet figures)2. Return on capital (use average balance sheet figures) %3. Days in inventory (use start of year balance sheet figures) %4. Inventory turnover (use start of year balance sheet figures5. Average collection period (use start of year balance sheet figures)6. Operating profit margin %7. Long term debt ratio (use end of year balance sheet figures)8. Total Debt ratio (use end of year balance sheet figures)arrow_forward
- FINANCIAL RATIO: Requirement: Compute for the following financial ratios for the year 2021 (round-off answers to two decimal places) f. Accounts receivable turnover (assume all sales are on credit) g. Days of receivable (use 365 days) h. Debt ratio i. Equity ratio j. Debt-to-equity ratio k. Gross profit ratio 1. Net profit ratio m. Return on assets n. Return on equityarrow_forwardLast year, which is used as the base year, a firm had cash of P46, accounts receivable of P132, inventory of P319, and net fixed assets of P640. This year, the firm has cash of P52, accounts receivable of P147, inventory of P312, and net fixed assets of P576. What is the common-base year value of accounts receivable? a. 1.11 b. 0.90 c. 1.13 d. 0.88arrow_forwardSunland Co. opened on July 1, 2020. On July 31, the statement of financial position showed Cash ¥5,500, Accounts Receivable ¥2,000, Supplies ¥500, Equipment ¥5,900, Accounts Payable ¥3,900, Share Capital-Ordinary ¥2,800, and Retained Earning of ¥7,200 (amounts in thousands). During August, the following transactions occurred. 1. 2. 3. 4. 5. 6. 7. 8. Collected ¥1,700 of accounts receivable. Paid ¥2,500 cash on accounts payable. Recognized revenue of ¥8,600, of which ¥2,400 is collected in cash and the balance is due in September. Purchased additional equipment for ¥1,700, paying ¥400 in cash and the balance on account. Paid salaries ¥2,500, rent for August ¥1,000, and advertising expenses ¥450. Declared and paid ¥1,000 dividend. Received ¥1,900 from Standard Bank-money borrowed on a note payable. Incurred utility expenses for month on account ¥330. Prepare a tabular analysis of the August transactions beginning with July 31 balances. (If a transaction results in a decrease in Assets,…arrow_forward
- Compute the following for year 2: 2-f. Return on assets. Assume that long-term debt increased to $36,810 in month 1 of year 2. (Round intermediate calculations to 3 decimal places and percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) 2-g. Return on equity. (Round percentage answer to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) 2-h. Financial leverage percentage. Did borrowing from creditors benefit shareholders? (Round intermediate calculations and final answer to 2 decimal places.)arrow_forwardUse the consolidated balance sheets which give historical data for a particular business. CONSOLIDATED BALANCE SHEETS (in millions) ASSETS Current Assets: Cash and Cash Equivalents Receivables Merchandise Inventories Prepaid Expenses and Other Current Assets Total Current Assets Property and Equipment-Net Goodwill Other Intangible Assets-Net Other Assets Total Assets LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-Term Debt Merchandise Accounts Payable Accounts Payable and Accrued Liabilities Income Taxes Deferred Income Taxes Total Current Liabilities Long-Term Debt Deferred Income Taxes Other Liabilities Shareholders' Equity Total Liabilities and Shareholders' Equity February 1, 2014 $2,473 448 5,657 430 9,008 7,930 3,743 527 746 $21,634 February 1, 2014 $453 1,681 2,710 372 300 5,516 6,728 1,273 1,658 6,249 $21,634 February 2, 2013 $1,826 381 5,408 351 7,966 8,196 3,743 561 615 $20,991 February 2, 2013 $124 1,579 2,610 355 407 5,075 6,806 1,238 1,821 6,051 $20,991arrow_forwardShown below are Apple Inc's Consolidated Statements of Operations for years ended September 24, 2022, September 25, 2021, and September 26, 2020; and Consolidated Balance Sheets at September 24, 2022, and September 25, 2021. Determine the following (show your work) for Apple Inc: a. Return on Equity for the year ended September 24, 2022. b. Acid-test ratio at September 24, 2022 Number of days sales in accounts receivable at September 24, 2022 Inventory turnover for the year ended September 24, 2022 With a common stock market price of $150.43 at September 24, 2022, the Price Earnings Ratio for the year ended september 24, 2022. C. d. e. f. 8. Do you conider the PE ratio in part e to be below average, average or above average? Why? The debt to equity ratio at September 24, 2022 Net sales: Products Services Total net sales Cost of sales: Products Services Total cost of sales Gross margin Operating expenses: Research and development Selling, general and administrative Total operating…arrow_forward
- Use the statement of financial position as at 31 December 2022, statement of comprehensive income for the year ended 31 December 2022 and additional information for 2022 (related to dividends and shares) to calculate the ratio (expressed to two decimal places) that would reflect each of the following: 1. The extent to which the claims of the short-term creditors are covered by assets that can be translated into cash in the short term2. The extent to which long-term debt is covered by shareholders’ funds3. The amount of funds available relative to sales, to pay the company’s expenses other than its cost of sales (expressed as a percentage)4. The distributions during the period allocated to each ordinary share issued5. An indication of the percentage of the profit that has been put back into the company 6. The ratio of a company's current stock price to its earnings per sharearrow_forwardA company reports the following income statement and balance sheet information for the current year: Net income $132,370 Interest expense 11,510 Average total assets 2,180,000 Determine the return on total assets. Round the percentage to one decimal place.fill in the blank %arrow_forwardFINANCIAL RATIO: Requirement: Compute for the following financial ratios for the year 2021 (round-off answers to two decimal places) a. Current ratio b. Quick (Acid-test) ratio c. Working capital d. Inventory turnover e. Days of inventory (use 365 days) f. Accounts receivable turnover (assume all sales are on credit) g. Days of receivable (use 365 days) h. Debt ratio i. Equity ratio j. Debt-to-equity ratio k. Gross profit ratio 1. Net profit ratio m. Return on assets n. Return on equityarrow_forward
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage LearningManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub