A.
Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdraw, discount, sales. Cash and its equivalent mean items which have liquidity in market. Liquidity means the asset of the company which can be sold in market at reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company.
To determine: Computation of cash and cash equivalents, percentage, Days’ sales uncollected, collection of receivables.
A.
Answer to Problem 3FSA
For current year total current asset is 15.9%, total assets is 12.2%, total current liabilities is 58.7% , total shareholder equity is 16.6%, for previous yeartotal current asset is 12.8%, total assets is 9.3%, total current liabilities is 63.5% , total shareholder equity is 17.9%
Explanation of Solution
Sr. | Particulars | Current Year | Prior Year |
A. | Cash | 32,111,442 | 22,636,744 |
B. | Accounts receivables | 27,800,408 | 28,520,689 |
C. | Current assets | 141,429,704 | 124,814,725 |
D. | Total current assets | 201,341,554 | 175,972,158 |
E. | Total assets | 262,174,324 | 242,179,521 |
F. | Current liabilities | 54,704,095 | 50,502,909 |
G. | Shareholder equity | 192,963,033 | 179,059,805 |
H. | Net sales | 201,866,745 | 200,653,482 |
Cash and cash equivalent as a percentage oftotal current asset for current year:
Cash and cash equivalent as a percentage of total current asset for prior year:
Cash and cash equivalent as a percentage of total asset for current year:
Cash and cash equivalent as a percentage of total asset for prior year:
Cash and cash equivalent as a percentage of total current liabilities for current year:
Cash and cash equivalent as a percentage of total current liabilities for prior year:
Cash and cash equivalent as a percentage of equity shareholders for current year:
Cash and cash equivalent as a percentage of equity shareholders for prior year:
B.
Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdraw, discount, sales. Cash and its equivalent mean items which have liquidity in market. Liquidity means the asset of the company which can be sold in market at reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company.
To determine: Computation of cash and cash equivalents, percentage, Days’ sales uncollected, collection of receivables.
B.
Answer to Problem 3FSA
Percentage change of cash balances for current year and prior year is41.8%
Explanation of Solution
Percentage change of cash balances for current year and prior year is:
C.
Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdraw, discount, sales. Cash and its equivalent mean items which have liquidity in market. Liquidity means the asset of the company which can be sold in market at reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company.
To determine: Computation of cash and cash equivalents, percentage, Days’ sales uncollected, collection of receivables.
C.
Answer to Problem 3FSA
Explanation of Solution
Account receivables account for prior year is:
Particulars | Amount | Particulars | Amount |
To Balance b/d | - | By Cash A/C |
|
To Sales |
| By balance c/d |
|
Total |
| Total |
|
Sales for the year-
(-) Cash collected during the year- (
Uncollected sales
Account receivables account for current year is:
Particulars | Amount | Particulars | Amount |
To Balance b/d |
| By Cash A/C |
|
To Sales |
| By balance c/d |
|
Total |
| Total |
|
Sales for the year-
(-) Cash collected during the year- (
Uncollected sales
D.
Introduction: Cash in the company inflow and outflow in various ways like capital, purchase, withdraw, discount, sales. Cash and its equivalent mean items which have liquidity in market. Liquidity means the asset of the company which can be sold in market at reasonable price easily. Cash and its equivalents are the assets of the company which contains the highest liquidity in the company.
To determine: Computation of cash and cash equivalents, percentage, Days’ sales uncollected, collection of receivables.
D.
Answer to Problem 3FSA
There is a favorable change in collection of account receivables.
Explanation of Solution
Particulars | Current Year | Prior Year |
Sales for the year |
|
|
Less: Cash collected during the year |
|
|
Percentage |
|
|
As per the increase in percentage for cash collection is seen. So, there is a favorable change in collection of account receivables.
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Chapter 6 Solutions
Connect Access Card for Financial Accounting: Information and Decisions
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