
1.
To identify:
Total amount of cash and cash equivalents and its percentage in reference of total current assets, total current liabilities, total shareholder’s equity and total assets for 2012 and 2013.
1.

Explanation of Solution
Balance of cash and cash equivalents as on September 28, 2013 and September 29, 2015 are as follows:
Particulars | Balance as on September 28, 2013 ($) |
% of cash and cash equivalents (%) |
Balance as on September 29, 2012 ($) |
% of cash and cash equivalents (%) |
---|---|---|---|---|
Cash and its equivalents | 14,259 | 10,746 | ||
Current Assets | 73,286 | 19.5 |
57,653 | 18.6 |
Current Liabilities | 43,658 | 32.7 |
38,542 | 27.9 |
Shareholder’s Equity | 123,549 | 11.5 |
118,210 | 9.1 |
Net Assets | 207,000 | 6.9 |
176,064 | 6.1 |
Table (1)
Review of trend:
From above data, it is observed that cash and cash equivalents have increased in 2013 as compared to 2012.
Hence, it is ascertained that liquidity position of A Company has increased slightly as compared to last year.
2.
Cash and cash equivalents percentage change in the beginning and ending of the year through the information contained in
2.

Explanation of Solution
Formula to calculate the percentage change in cash and cash equivalents is:
2013
Given,
Cash and cash equivalents in the beginning of 2013 is $10,746 million.
Cash and cash equivalents at the end of the year is $14,259 million.
Substitute $10,746 million for cash and cash equivalents in the beginning of the 2015 and $14,259 million at the end of the year,
Hence, percentage change represents an increase of 24.6%.
2014
Given,
Cash and cash equivalents in the beginning of 2014 is $9,815 million.
Cash and cash equivalents at the end of the year is $10,746 million.
Substitute $9,815 million for cash and cash equivalents in the beginning of the 2015 and $10,746 million at the end of the year,
Hence, percentage change represents a decrease of 8.7%.
3.
Day’s sales uncollected as of September 28, 2013 and September 29, 2012.
3.

Explanation of Solution
Day’s sales uncollected imply how much days a company takes to collect its accounts receivables.
Formula to calculate day’s sales uncollected is:
2013
Given,
Net sales are $170,910 million.
Substitute $13,102 million for accounts receivable, and $170,910 million for net sales,
2012
Given,
Accounts receivable is $10,930 million.
Net sales are $156,508 million.
Substitute $10,930 million for accounts receivable, and $156,508 million for net sales,
Hence, day’s sales uncollected are accounted for 2013 is 28 days and for 2012 is 25.48 days.
• Thus, it is concluded that A Company has declined its performance in order to collect its receivable as now it would take 2.52 more days to collect receivables.
• Accounts receivables are important part of the company as it indicates about the turnover. So, company should take steps for its improvements.
4.
Day’s sales uncollected as of September 26, 2015.
4.

Explanation of Solution
Day’s sales uncollected imply how much days a company takes to collect its accounts receivables.
Given info,
Accounts receivable is $16,849 million.
Net sales are $233,715 million.
Formula to calculate day’s sales uncollected is,
Substitute $16,849 million for accounts receivable and $233,715 million for net sales,
Hence, day’s sales uncollected are accounted for 26.31 days.
Thus, company would take 1.69 days more days to collect its receivables in the year 2013 (28 days) as compared to 2015 (26.31 days).
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Chapter 6 Solutions
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