Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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Textbook Question
Chapter 6, Problem 10C
Analyzing Starbucks’s Cash and Receivables Disclosures
Obtain Starbucks’s 2017 annual report either using the “Investor Relations” portion of its web site (do a Web search for Starbucks investor relations) or go to http*//www.sec.gov and click “Search for company filings” under “Filings and Forms (EDGAR).” '
Required:
- 1. (a) What were the cash and cash equivalents at the end of 2017? What does the company classify as cash equivalents? (b) Why are cash and cash equivalents combined into one amount on the
balance sheet ? - 2. What were the trade
accounts receivable (net) at the end of 2017? At the end of 2016?Given Starbucks’s large volume of sales, why isn’t the receivables larger?
- 3. What amount of its accounts receivable does Starbucks believe is uncollectible?
- 4. What method does Starbucks use to estimate its allowance for doubtful accounts? Is this method allowable by GAAP?
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https://www.republictt.com/pdfs/annual-reports/RFHL-Annual-Report-2022.pdf
Financial Reporting Analysis: Use Republic Bank Limited Annual Report 2022 to answer the
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A Financial Analysis Statement
Calculate the 2021 (year ended 12/31/21) current ratio for Twitter. Calculate the 2021 (year ended 12/31/2021) current ratio for Meta. Which company has a better current ratio and why? Explain in a short paragraph. Calculate the 2021 accounts receivable turnover ratio for Twitter. Calculate the 2021 accounts receivable turnover ratio for Meta. Calculate the average collection period for each company.
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Illustration:
ABC Co.'s cash balance on January 1 2018 was P 20 000 The following were the transactions
that affected cash during the period
a. Collections from customers for the sale of goods,
b. Cash receipt from loan obtained from a bank,
c. Cash receipt from additional investment by owner,
d. Payments to suppliers for the purchase of inventory,
e. Payments for employee salaries,
f. Payments for rent expenses,
g. Payment for utilities expense,
h. Payment for the acquisition of equipment,
i. Cash disbursements for drawings by owner,
Required: Prepare the statement of cash flows
from operating activities
Please be guided by the rubric below:
ACTIVITY No.
RE
20
16
12
8
P 580 000
P 180 000
P 20 000
P 120 000
P 140 000
70 000
P
P 20 000
P 200 000
P 60 000
the direct method of presenting cash flows
DESCRIPTION
The financial position is presented properly, and the
amounts are correct
The financial position is presented properly, and the
amounts have few errors
The financial position is…
Chapter 6 Solutions
Intermediate Accounting: Reporting And Analysis
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