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Business Accounting Financial Accounting: Information for Decisions

1. Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdrawal and discount, sales. Cash and its equivalent mean items which have liquidity in the market. Liquidity means the asset of the company which can be sold in the market at a reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company . Company’s financial statements which show the amount related to the fiscal year. To find : Total amount of cash and cash equivalents for fiscal years. Total amount of cash and cash equivalents for fiscal years is $20,484 for year 2016 and $21,120 for year 2015. Cash and cash equivalent involved is currency, coin, saving account, petty cash, money market accounts, highly liquid investments having maturity of 3 months or less. As the cash and cash equivalent has increased a bitabout different basis over the underlying period. Particulars September 24, 2016 September 26, 2015 Cash and cash equivalents $20,484 $21,120 2. Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdrawal and discount, sales. Cash and its equivalent mean items which have liquidity in the market. Liquidity means the asset of the company which can be sold in the market at a reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company . Company’s financial statements which show the amount related to the fiscal year. To calculate : Calculate the cash and cash equivalent as a percent of total current assets, total current liabilities, total stockholders’ equity and total assets of both the fiscal year. Cash flow refers to the flow of cash inflow or outflow during accounting period. Particulars September 24, 2016 % of cash and its equivalent September 26, 2015 % of cash and its equivalent Cash and cash equivalents $20,484 $21,120 Asset (Current) 106,869 19.2% 89,378 23.6% Liabilities (Current) 79,006 25.9% 80,610 26.2% Equity shareholders 128,249 16.0% 119,335 17.7% Net asset 321,686 06.4% 290,345 7.3% For September 24 2016, Percentage of Cash and cash equivalents to assets = Cash and cash equivalents Assets = $ 20 , 484 106 , 869 = 19.16 % Percentage of Cash and cash equivalents to liabilities = Cash and cash equivalents liabilities = $ 20 , 484 79 , 006 = 25.92 % Percentage of Cash and cash equivalents to equity shareholder = Cash and cash equivalents equity shareholder = $ 20 , 484 128 , 249 = 15.97 % Percentage of Cash and cash equivalents to Net Asset = Cash and cash equivalents Net Asset = $ 20 , 484 321 , 686 = 6.36 % September 26, 2015 Percentage of Cash and cash equivalents to assets = Cash and cash equivalents Assets = $ 21 , 120 89 , 378 = 23.6 % Percentage of Cash and cash equivalents to liabilities = Cash and cash equivalents liabilities = $ 21 , 120 80.610 = 26.2 % Percentage of Cash and cash equivalents to Equity shareholder = Cash and cash equivalents Equity shareholder = $ 21 , 120 119 , 335 = 17.7 % Percentage of Cash and cash equivalents to Net asset = Cash and cash equivalents Net asset = $ 21 , 120 290 , 345 = 7.3 % 3. Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdrawal and discount, sales. Cash and its equivalent mean items which have liquidity in the market. Liquidity means the asset of the company which can be sold in the market at a reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company . Company’s financial statements which show the amount related to the fiscal year. To calculate : Calculate the percent change in cash and cash equivalent. Cash flow refers to the flow of cash inflow or outflow during accounting period. For 2016: Percentage change = cash and cash equivalent at the end- cash equivalent in the beginning cash and cash equivalent at the end = ( ( 20 , 484 − 21 , 120 ) 20 , 484 ) = − 3.10 for 2015: Percentage change = cash and cash equivalent at the end- cash equivalent in the beginning cash and cash equivalent at the end = ( ( 21 , 120 − 13 , 844 ) 21 , 120 ) = 0.34 4. Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdrawal and discount, sales. Cash and its equivalent mean items which have liquidity in the market. Liquidity means the asset of the company which can be sold in the market at a reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company . Company’s financial statements which show the amount related to the fiscal year. To calculate : Calculate the cash and cash equivalent as well as in percentage, day’s sales uncollected, receivable on a favorable or unfavorable trend. The consolidated financial statements of the company will help to calculate the related details asked in the questions from fiscal year. Day’s sales uncollected is defined as the financial measure concerning the compatibility of the company that represents how long it will take to collect the account receivable. Computation of the day’s sale uncollected is: Day's sales uncollected 2016 = Accounts recievable Net sales × 365 Day's sales uncollected 2016 = 15 , 754 215 , 639 × 365 Day's sales uncollected 2016 = 26.67 Day's sales uncollected 2015 = Accounts recievable Net sales × 365 Day's sales uncollected 2015 = 16 , 849 233 , 715 × 365 Day's sales uncollected 2015 = 26 .31 5. Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdrawal and discount, sales. Cash and its equivalent mean items which have liquidity in the market. Liquidity means the asset of the company which can be sold in the market at a reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company . Company financial statements which show the amount related to the fiscal year. To calculate : Calculate the cash and cash equivalent as well as in percentage, day’s sales uncollected, receivable on a favorable or unfavorable trend. The consolidated financial statements of the company will help to calculate the related details asked in the questions from fiscal year. Day’s sales uncollected are defined as the financial measure concerning the compatibility of the company that represents how long it will take to collect the account receivable. Thus, it is ascertained that the company would take more days in collecting the account receivables in the year 2016 in comparison to 2015. Hence, the collection concerning receivables has decreased and management should undertake steps to make progressive and strong for its credit policies for decreasing its account receivables.

1. Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdrawal and discount, sales. Cash and its equivalent mean items which have liquidity in the market. Liquidity means the asset of the company which can be sold in the market at a reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company . Company’s financial statements which show the amount related to the fiscal year. To find : Total amount of cash and cash equivalents for fiscal years. Total amount of cash and cash equivalents for fiscal years is $20,484 for year 2016 and $21,120 for year 2015. Cash and cash equivalent involved is currency, coin, saving account, petty cash, money market accounts, highly liquid investments having maturity of 3 months or less. As the cash and cash equivalent has increased a bitabout different basis over the underlying period. Particulars September 24, 2016 September 26, 2015 Cash and cash equivalents $20,484 $21,120 2. Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdrawal and discount, sales. Cash and its equivalent mean items which have liquidity in the market. Liquidity means the asset of the company which can be sold in the market at a reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company . Company’s financial statements which show the amount related to the fiscal year. To calculate : Calculate the cash and cash equivalent as a percent of total current assets, total current liabilities, total stockholders’ equity and total assets of both the fiscal year. Cash flow refers to the flow of cash inflow or outflow during accounting period. Particulars September 24, 2016 % of cash and its equivalent September 26, 2015 % of cash and its equivalent Cash and cash equivalents $20,484 $21,120 Asset (Current) 106,869 19.2% 89,378 23.6% Liabilities (Current) 79,006 25.9% 80,610 26.2% Equity shareholders 128,249 16.0% 119,335 17.7% Net asset 321,686 06.4% 290,345 7.3% For September 24 2016, Percentage of Cash and cash equivalents to assets = Cash and cash equivalents Assets = $ 20 , 484 106 , 869 = 19.16 % Percentage of Cash and cash equivalents to liabilities = Cash and cash equivalents liabilities = $ 20 , 484 79 , 006 = 25.92 % Percentage of Cash and cash equivalents to equity shareholder = Cash and cash equivalents equity shareholder = $ 20 , 484 128 , 249 = 15.97 % Percentage of Cash and cash equivalents to Net Asset = Cash and cash equivalents Net Asset = $ 20 , 484 321 , 686 = 6.36 % September 26, 2015 Percentage of Cash and cash equivalents to assets = Cash and cash equivalents Assets = $ 21 , 120 89 , 378 = 23.6 % Percentage of Cash and cash equivalents to liabilities = Cash and cash equivalents liabilities = $ 21 , 120 80.610 = 26.2 % Percentage of Cash and cash equivalents to Equity shareholder = Cash and cash equivalents Equity shareholder = $ 21 , 120 119 , 335 = 17.7 % Percentage of Cash and cash equivalents to Net asset = Cash and cash equivalents Net asset = $ 21 , 120 290 , 345 = 7.3 % 3. Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdrawal and discount, sales. Cash and its equivalent mean items which have liquidity in the market. Liquidity means the asset of the company which can be sold in the market at a reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company . Company’s financial statements which show the amount related to the fiscal year. To calculate : Calculate the percent change in cash and cash equivalent. Cash flow refers to the flow of cash inflow or outflow during accounting period. For 2016: Percentage change = cash and cash equivalent at the end- cash equivalent in the beginning cash and cash equivalent at the end = ( ( 20 , 484 − 21 , 120 ) 20 , 484 ) = − 3.10 for 2015: Percentage change = cash and cash equivalent at the end- cash equivalent in the beginning cash and cash equivalent at the end = ( ( 21 , 120 − 13 , 844 ) 21 , 120 ) = 0.34 4. Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdrawal and discount, sales. Cash and its equivalent mean items which have liquidity in the market. Liquidity means the asset of the company which can be sold in the market at a reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company . Company’s financial statements which show the amount related to the fiscal year. To calculate : Calculate the cash and cash equivalent as well as in percentage, day’s sales uncollected, receivable on a favorable or unfavorable trend. The consolidated financial statements of the company will help to calculate the related details asked in the questions from fiscal year. Day’s sales uncollected is defined as the financial measure concerning the compatibility of the company that represents how long it will take to collect the account receivable. Computation of the day’s sale uncollected is: Day's sales uncollected 2016 = Accounts recievable Net sales × 365 Day's sales uncollected 2016 = 15 , 754 215 , 639 × 365 Day's sales uncollected 2016 = 26.67 Day's sales uncollected 2015 = Accounts recievable Net sales × 365 Day's sales uncollected 2015 = 16 , 849 233 , 715 × 365 Day's sales uncollected 2015 = 26 .31 5. Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdrawal and discount, sales. Cash and its equivalent mean items which have liquidity in the market. Liquidity means the asset of the company which can be sold in the market at a reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company . Company financial statements which show the amount related to the fiscal year. To calculate : Calculate the cash and cash equivalent as well as in percentage, day’s sales uncollected, receivable on a favorable or unfavorable trend. The consolidated financial statements of the company will help to calculate the related details asked in the questions from fiscal year. Day’s sales uncollected are defined as the financial measure concerning the compatibility of the company that represents how long it will take to collect the account receivable. Thus, it is ascertained that the company would take more days in collecting the account receivables in the year 2016 in comparison to 2015. Hence, the collection concerning receivables has decreased and management should undertake steps to make progressive and strong for its credit policies for decreasing its account receivables.

Solution Summary: The author explains how cash in the company inflow and outflow in various ways like capital, purchase, withdrawal and discount, sales.

Financial Accounting: Information for Decisions

Financial Accounting: Information for Decisions

9th Edition

ISBN: 9781260158809

Author: Wild, John

Publisher: MCGRAW-HILL HIGHER EDUCATION

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Chapter 6 Solutions

Financial Accounting: Information for Decisions

Ch. 6 - List the seven braod principles of internal...Ch. 6 - Prob. 2DQ Ch. 6 - Prob. 3DQ Ch. 6 - Prob. 4DQ Ch. 6 - Prob. 5DQ Ch. 6 - Prob. 6DQ Ch. 6 - Prob. 7DQ Ch. 6 - Prob. 8DQ Ch. 6 - Prob. 9DQ Ch. 6 - Prob. 10DQ

Ch. 6 - Refer to Google’s financial statements in Appendix...Ch. 6 - Prob. 12DQ Ch. 6 - Prob. 13DQ Ch. 6 - Prob. 1QS Ch. 6 - Prob. 2QS Ch. 6 - Prob. 3QS Ch. 6 - Prob. 4QS Ch. 6 - Prob. 5QS Ch. 6 - Prob. 6QS Ch. 6 - Prob. 7QS Ch. 6 - Prob. 8QS Ch. 6 - Prob. 9QS Ch. 6 - Prob. 10QS Ch. 6 - Prob. 11QS Ch. 6 - Prob. 1E Ch. 6 - Prob. 2E Ch. 6 - Prob. 3E Ch. 6 - Prob. 4E Ch. 6 - Prob. 5E Ch. 6 - Prob. 6E Ch. 6 - Prob. 7E Ch. 6 - Prob. 8E Ch. 6 - Prob. 9E Ch. 6 - Prob. 10E Ch. 6 - Prob. 11E Ch. 6 - Prob. 12E Ch. 6 - Prob. 13E Ch. 6 - Prob. 14E Ch. 6 - Prob. 15E Ch. 6 - Prob. 1PSA Ch. 6 - Prob. 2PSA Ch. 6 - Prob. 3PSA Ch. 6 - Prob. 4PSA Ch. 6 - Prob. 5PSA Ch. 6 - Prob. 1PSB Ch. 6 - Prob. 2PSB Ch. 6 - Prob. 3PSB Ch. 6 - Prob. 4PSB Ch. 6 - Prob. 5PSB Ch. 6 - Prob. 6SP Ch. 6 - Prob. 1GLP Ch. 6 - Prob. 1FSA Ch. 6 - Prob. 2FSA Ch. 6 - Prob. 3FSA Ch. 6 - Prob. 1BTN Ch. 6 - Assume you are a business consultant. The owner of...Ch. 6 - Prob. 4BTN Ch. 6 - Review the opening feature of this chapter that...Ch. 6 - Prob. 6BTN

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