FINANCIAL AND MANAGERIAL ACCOUNTING
9th Edition
ISBN: 2818440048890
Author: Wild
Publisher: MCG CUSTOM
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Question
Chapter 6, Problem 3.2AA
a.
To determine
Vertical Analysis:
In vertical analysis, every line item is represented as a percentage of a base amount which can be either total assets, total liabilities, total equities, etc.
Requirement 1
To compute:
Cash as a percentage of total current assets, total current liabilities, total
b.
To determine
Horizontal Analysis:
In horizontal analysis, a single line item is represented and compared as a percentage change from one base year to the subsequent years.
Requirement 2
To compute:
Percentage change between the beginning and ending cash balances for the current year.
c.
To determine
Days’ sales uncollected:
This ratio defines how fast a company converts its receivable into known amounts of cash. The lesser the ratio is, the better it is for the company as it will prove that the company employs an efficient system of cash collection from customers.
Requirement 3
To compute:
The days’ sales uncollected for both the current and prior year.
d.
To determine
Changes in Days’ sales uncollected:
The changes in the ratio of days’ sales uncollected will greatly impact the liquidity problem of the entity. If it is reduced, the company is considered to be efficiently managing its cash collection mechanism or in case, it is increased, the otherwise will follow.
Requirement 4
Whether S’s receivables collection is showing a favorable or unfavorable change.
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Students have asked these similar questions
ces
Given the following information, complete the balance sheet shown next.
Collection period
Days' sales in cash
Current ratio
Inventory turnover
Liabilities to assets
Payables period
Assets
Current assets:
Cash
Accounts receivable
Inventory
Total current assets
Net fixed assets
Total assets
(All sales are on credit. All calculations assume a 365-day year. The payables period is based on cost of
goods sold.)
Note: Round your answers to the nearest whole dollar.
Liabilities and shareholders' equity
Current liabilities:
71 days
33
days
2.2
times
Accounts payable
Short-term debt
Total current liabilities
Long-term debt
Shareholders' equity
Total liabilities and equity
5
65%
35 days
$
$
1,300,000
2,000,000
7,000,000
Following is selected financial information from General Mills, Inc., for its fiscal year ended May 31,
2020 ($ millions).
Cash and cash equivalents, end of year.
Net cash from operations..
Net sales.
Stockholders' equity, end of year
Cost of goods sold.
Net cash from financing.
Total liabilities, end of year.
Other expenses, including income taxes
Noncash assets, end of year.
Net cash from investing
Net income...
Effect of exchange rate changes on cash
Cash and cash equivalents, beginning of year.
pg. 1-35
a.
....
....
$ 1,677.8
3,676.2
17,626.6
8,894.1
11,496.7
(1,941.5)
21,912.6
3,919.1
29,128.9
(486.2)
2,210.8
(20.7)
450.0
?
REQUIRED
Prepare an income statement, balance sheet, and statement of cash flows for General Mills, Inc.
i need help with this current ratio
Chapter 6 Solutions
FINANCIAL AND MANAGERIAL ACCOUNTING
Ch. 6 - Prob. 1QSCh. 6 - Prob. 2QSCh. 6 - Prob. 3QSCh. 6 - Prob. 4QSCh. 6 - Prob. 5QSCh. 6 - Prob. 6QSCh. 6 - Prob. 7QSCh. 6 - Prob. 8QSCh. 6 - Prob. 9QSCh. 6 - Prob. 10QS
Ch. 6 - Prob. 11QSCh. 6 - Prob. 12QSCh. 6 - Prob. 13QSCh. 6 - Prob. 14QSCh. 6 - Prob. 15QSCh. 6 - Prob. 16QSCh. 6 - Prob. 1ECh. 6 - Prob. 2ECh. 6 - Prob. 3ECh. 6 - Prob. 4ECh. 6 - Prob. 5ECh. 6 - Prob. 6ECh. 6 - Prob. 7ECh. 6 - Prob. 8ECh. 6 - Prob. 9ECh. 6 - Prob. 10ECh. 6 - Prob. 11ECh. 6 - Prob. 12ECh. 6 - Prob. 13ECh. 6 - Prob. 14ECh. 6 - Prob. 15ECh. 6 - Prob. 16ECh. 6 - Prob. 17ECh. 6 - Prob. 1PSACh. 6 - Prob. 2PSACh. 6 - Prob. 3PSACh. 6 - Prob. 4PSACh. 6 - Prob. 5PSACh. 6 - Prob. 1PSBCh. 6 - Prob. 2PSBCh. 6 - Prob. 3PSBCh. 6 - Prob. 4PSBCh. 6 - Prob. 5PSBCh. 6 - Prob. 6SPCh. 6 - Prob. 1GLPCh. 6 - Prob. 1.1AACh. 6 - Prob. 1.2AACh. 6 - Prob. 1.3AACh. 6 - Prob. 1.4AACh. 6 - Prob. 1.5AACh. 6 - Prob. 2.1AACh. 6 - Prob. 2.2AACh. 6 - Prob. 3.1AACh. 6 - Prob. 3.2AACh. 6 - Prob. 3.3AACh. 6 - Prob. 3.4AACh. 6 - Prob. 1DQCh. 6 - Prob. 2DQCh. 6 - Prob. 3DQCh. 6 - Prob. 4DQCh. 6 - Prob. 5DQCh. 6 - Prob. 6DQCh. 6 - Prob. 7DQCh. 6 - Prob. 8DQCh. 6 - Prob. 9DQCh. 6 - Prob. 10DQCh. 6 - Prob. 11DQCh. 6 - Prob. 12DQCh. 6 - Prob. 13DQCh. 6 - Prob. 14DQCh. 6 - Harriet Knox, Ralph Patton, and Marcia Diamond...Ch. 6 - Prob. 2BTNCh. 6 - Prob. 3BTNCh. 6 - Prob. 4BTN
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