Cash and Cash Equivalent: Cash and cash equivalent are basically cash (currency) or the short-term assets which have high liquidity and can be converted into cash within short period of time. Requirement 1: To compute: Compute cash and cash equivalents as a percent of total current assets, total assets, total current liabilities and total shareholder's equity for both years.

Question

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Answer 1

Question

Chapter 8, Problem 3AA

To determine

Concept Introduction:

Cash and Cash Equivalent:

Cash and cash equivalent are basically cash (currency) or the short-term assets which have high liquidity and can be converted into cash within short period of time.

Requirement 1:

To compute:

Compute cash and cash equivalents as a percent of total current assets, total assets, total current liabilities and total shareholder's equity for both years.

To determine

Concept Introduction:

Percentage Change:

The comparison of last year and current year to determine the amount of change is known as percentage change.

Requirement 2:

To Compute:

Compute the percentage change between the current year and prior year cash balances

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 3:

To compute:

Compute the days' sales uncollected at the end of both

(a) Current year and

(b) Prior year.

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 4:

To find:

Does Samsung's collection of receivables show a favorable or unfavorable change?

Expert Solution & Answer

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Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's expenses, Gross margin, and Net income?

Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's assets, Liabilities, and Equity?

Answer 2

Question

Chapter 8, Problem 3AA

To determine

Concept Introduction:

Cash and Cash Equivalent:

Cash and cash equivalent are basically cash (currency) or the short-term assets which have high liquidity and can be converted into cash within short period of time.

Requirement 1:

To compute:

Compute cash and cash equivalents as a percent of total current assets, total assets, total current liabilities and total shareholder's equity for both years.

To determine

Concept Introduction:

Percentage Change:

The comparison of last year and current year to determine the amount of change is known as percentage change.

Requirement 2:

To Compute:

Compute the percentage change between the current year and prior year cash balances

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 3:

To compute:

Compute the days' sales uncollected at the end of both

(a) Current year and

(b) Prior year.

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 4:

To find:

Does Samsung's collection of receivables show a favorable or unfavorable change?

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 8, Problem 3AA

To determine

Concept Introduction:

Cash and Cash Equivalent:

Cash and cash equivalent are basically cash (currency) or the short-term assets which have high liquidity and can be converted into cash within short period of time.

Requirement 1:

To compute:

Compute cash and cash equivalents as a percent of total current assets, total assets, total current liabilities and total shareholder's equity for both years.

To determine

Concept Introduction:

Percentage Change:

The comparison of last year and current year to determine the amount of change is known as percentage change.

Requirement 2:

To Compute:

Compute the percentage change between the current year and prior year cash balances

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 3:

To compute:

Compute the days' sales uncollected at the end of both

(a) Current year and

(b) Prior year.

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 4:

To find:

Does Samsung's collection of receivables show a favorable or unfavorable change?

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 8, Problem 3AA

To determine

Concept Introduction:

Cash and Cash Equivalent:

Cash and cash equivalent are basically cash (currency) or the short-term assets which have high liquidity and can be converted into cash within short period of time.

Requirement 1:

To compute:

Compute cash and cash equivalents as a percent of total current assets, total assets, total current liabilities and total shareholder's equity for both years.

To determine

Concept Introduction:

Percentage Change:

The comparison of last year and current year to determine the amount of change is known as percentage change.

Requirement 2:

To Compute:

Compute the percentage change between the current year and prior year cash balances

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 3:

To compute:

Compute the days' sales uncollected at the end of both

(a) Current year and

(b) Prior year.

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 4:

To find:

Does Samsung's collection of receivables show a favorable or unfavorable change?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 8, Problem 3AA

To determine

Concept Introduction:

Cash and Cash Equivalent:

Cash and cash equivalent are basically cash (currency) or the short-term assets which have high liquidity and can be converted into cash within short period of time.

Requirement 1:

To compute:

Compute cash and cash equivalents as a percent of total current assets, total assets, total current liabilities and total shareholder's equity for both years.

To determine

Concept Introduction:

Percentage Change:

The comparison of last year and current year to determine the amount of change is known as percentage change.

Requirement 2:

To Compute:

Compute the percentage change between the current year and prior year cash balances

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 3:

To compute:

Compute the days' sales uncollected at the end of both

(a) Current year and

(b) Prior year.

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 4:

To find:

Does Samsung's collection of receivables show a favorable or unfavorable change?

Answer 6

Chapter 8, Problem 3AA

To determine

Concept Introduction:

Cash and Cash Equivalent:

Cash and cash equivalent are basically cash (currency) or the short-term assets which have high liquidity and can be converted into cash within short period of time.

Requirement 1:

To compute:

Compute cash and cash equivalents as a percent of total current assets, total assets, total current liabilities and total shareholder's equity for both years.

Answer 7

Chapter 8, Problem 3AA

To determine

Concept Introduction:

Cash and Cash Equivalent:

Cash and cash equivalent are basically cash (currency) or the short-term assets which have high liquidity and can be converted into cash within short period of time.

Requirement 1:

To compute:

Compute cash and cash equivalents as a percent of total current assets, total assets, total current liabilities and total shareholder's equity for both years.

Answer 8

To determine

Concept Introduction:

Percentage Change:

The comparison of last year and current year to determine the amount of change is known as percentage change.

Requirement 2:

To Compute:

Compute the percentage change between the current year and prior year cash balances

Answer 9

To determine

Concept Introduction:

Percentage Change:

The comparison of last year and current year to determine the amount of change is known as percentage change.

Requirement 2:

To Compute:

Compute the percentage change between the current year and prior year cash balances

Answer 10

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 3:

To compute:

Compute the days' sales uncollected at the end of both

(a) Current year and

(b) Prior year.

Answer 11

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 3:

To compute:

Compute the days' sales uncollected at the end of both

(a) Current year and

(b) Prior year.

Answer 12

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 4:

To find:

Does Samsung's collection of receivables show a favorable or unfavorable change?

Answer 13

To determine

Concept Introduction:

Days' Sales Uncollected:

The financial ratio which expresses the average number of days taken by the business to collect cash from its debtors or accounts receivable. It is computed by dividing the accounts receivable by the average sales per day. Lower ratio of days' sales uncollected is considered favorable as it symbolizes lesser period taken to collect from the debtors of the business and vice-versa.

Requirement 4:

To find:

Does Samsung's collection of receivables show a favorable or unfavorable change?

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Check out a sample textbook solution

See solution

Answer 17

Ch. 8 - Prob. 1QS Ch. 8 - Prob. 2QS Ch. 8 - Prob. 3QS Ch. 8 - Prob. 4QS Ch. 8 - Prob. 5QS Ch. 8 - Prob. 6QS Ch. 8 - Prob. 7QS Ch. 8 - Prob. 8QS Ch. 8 - Prob. 9QS Ch. 8 - Prob. 10QS

Videos

Concept Introduction:

Percentage Change:

The comparison of last year and current year to determine the amount of change is known as percentage change.

Requirement 2:

To Compute:

Compute the percentage change between the current year and prior year cash balances

Want to see the full answer?

Chapter 8 Solutions

Videos

Concept Introduction: Percentage Change: The comparison of last year and current year to determine the amount of change is known as percentage change. Requirement 2: To Compute: Compute the percentage change between the current year and prior year cash balances

Want to see the full answer?

Chapter 8 Solutions

Concept Introduction:

Percentage Change:

The comparison of last year and current year to determine the amount of change is known as percentage change.

Requirement 2:

To Compute:

Compute the percentage change between the current year and prior year cash balances