Financial & Managerial Accounting 14th Ed. W/ PAC LMS Intg CNOWv2 2S
14th Edition
ISBN: 9781337591027
Author: WARREN, Reeve, Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 7, Problem 4ADM
Nike, lululemon, and Under Armour: Days’ cash on hand
Three companies that compete in the athletic and activewear market segment are Nike, Inc., lululemon athletica inc., and Under Armour, Inc. Nike is the largest designer and seller of athletic footwear and apparel in the world. Lululemon designs and sells technical athletic apparel featuring yoga, fitness, and dance-inspired wear. Under Armour designs and sells athletic apparel featuring high-performance fabrics for men and women around the world. Selected financial information for a recent year follows (in millions):
| Nike | lululemon | UnderArmour | |
| Cash | $ 2,220 | $ 664 | $ 593 |
| Temporary investments | 2,922 | ||
| Income statement: | |||
| Operating expenses | 8,766 | 538 | 1,158 |
| 518 | 58 | 72 | |
| Total revenues | 27,799 | 1,797 | 3,084 |
- A. How does the size of these companies, as represented by total revenues, compare
to each other?
- B. Compute the days’ cash on hand for all three companies. (Round all calculations to one decimal place.)
- C. Comment on the cash sufficiency for these three companies.
- D. Which company appears to have the greatest cash liquidity?
- E. Why is a ratio used to compare cash sufficiency across the three companies rather than just the companies’ cash balances?
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Chapter 7 Solutions
Financial & Managerial Accounting 14th Ed. W/ PAC LMS Intg CNOWv2 2S
Ch. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQ
Ch. 7 - Internal control elements Identify each of the...Ch. 7 - Prob. 7.2BECh. 7 - Prob. 7.3BECh. 7 - Prob. 7.4BECh. 7 - Sarbanes-Oxley internal control report Using...Ch. 7 - Prob. 7.2EXCh. 7 - Prob. 7.3EXCh. 7 - Prob. 7.4EXCh. 7 - Prob. 7.5EXCh. 7 - Prob. 7.6EXCh. 7 - Prob. 7.7EXCh. 7 - Prob. 7.8EXCh. 7 - Prob. 7.9EXCh. 7 - Prob. 7.10EXCh. 7 - Prob. 7.11EXCh. 7 - Entry for cash sales; cash short The actual cash...Ch. 7 - Entry for cash sales; cash over The actual cash...Ch. 7 - Prob. 7.14EXCh. 7 - Prob. 7.15EXCh. 7 - Prob. 7.16EXCh. 7 - Prob. 7.17EXCh. 7 - Prob. 7.18EXCh. 7 - Prob. 7.19EXCh. 7 - Prob. 7.20EXCh. 7 - Prob. 7.21EXCh. 7 - Prob. 7.22EXCh. 7 - Prob. 7.23EXCh. 7 - Prob. 7.24EXCh. 7 - Prob. 7.1APRCh. 7 - Prob. 7.2APRCh. 7 - Prob. 7.3APRCh. 7 - Prob. 7.4APRCh. 7 - Prob. 7.5APRCh. 7 - Prob. 7.1BPRCh. 7 - Prob. 7.2BPRCh. 7 - Prob. 7.3BPRCh. 7 - Prob. 7.4BPRCh. 7 - Prob. 7.5BPRCh. 7 - Continuing Company AnalysisAmazon: Days cash on...Ch. 7 - Apache: Days cash on hand Apache Corporation is an...Ch. 7 - Krispy Kreme and Dunkin: Days cash on hand Krispy...Ch. 7 - Nike, lululemon, and Under Armour: Days cash on...Ch. 7 - Prob. 7.1TIFCh. 7 - Communication Wholesome and Happy Foods is a...
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