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Chapter 7, Problem 3ADM

Krispy Kreme and Dunkin’: Days’ cash on hand

Krispy Kreme Doughnuts, Inc. is a leading retailer and wholesaler of doughnuts. Krispy Kreme owns or franchises 1,000 stores where the “hot” light tells you if doughnuts are cooking. Dunkin’ Brands Group, Inc. is a leading franchisor of doughnut (Dunkin’ Donuts) and ice cream (Baskin-Robbins) shops with more than 19,000 stores worldwide. Selected financial statement information for a recent year for both companies follows (in thousands):

  Krispy Kreme Dunkin’Brands
Operating expenses $442,097 $432,535
Depreciation expense 12,840 19,779
Cash (end of year balance) 50,971 208,080
  • A. Determine the days’ cash on hand for each company. (Round all calculations to one decimal place.)
  • B. Which company appears to have the stronger cash liquidity position?
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Chapter 7 Solutions

Bundle: Financial & Managerial Accounting, Loose-leaf Version, 14th + Working Papers For Warren/reeve/duchac's Corporate Financial Accounting, 14th + ... Financial & Managerial Accounting,

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