Chapter 5, Problem 1FF

1 (a)

To determine

The account “short term marketable securities” consist of.

1 (b)

To determine

The purpose of investing in the short term marketable securities.

1 (c)

To determine

The percentage of change has occurred in the short term marketable securities from September 28, 2013 to September 27, 2014 and the managements business strategy reveals about it.

1 (d)

To determine

To explain: Accounts for marketable securities are recorded in the financial statement with reference to note 1.

1 (e)

To determine

To explain: That the company profited from holding its portfolio of marketable securities during the year ended September 27, 2014.

2.

To determine

To describe: The types of activities that earn revenue for Incorporation A.

3.

To determine

To explain: The word “less Allowance” from the balance sheet of Incorporation A.

4.

To determine

The kinds of accounts receivables are included in the receivables of Incorporation A.

5.

To determine

The allowance for Uncollectible accounts in 2014 and 2013.

6.

To determine

To calculate: The current ratio, quick ratio and net working capital for Incorporation A for 2014 and 2013 and evaluate the liquidity trend of over the two years.