Financial and Managerial Accounting - With CengageNow
14th Edition
ISBN: 9781337577809
Author: WARREN
Publisher: CENGAGE L
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Chapter 7, Problem 1ADM
Continuing Company Analysis—Amazon: Days’ cash on hand
Amazon.com, Inc. is one of the largest Internet retailers in the world. Netflix, Inc. provides digital streaming and DVD rentals in the United States. Amazon and Netflix compete in streaming and digital services; however, Amazon also sells many other products online. The cash, temporary investments, operating expenses, and
| Amazon | Netflix | |
| Cash | $14,557 | $1,114 |
| Temporary investments | — | 495 |
| Income statement: | ||
| Operating expenses | 88,810 | 5,102 |
| Depreciation expense | 4,746 | 2,781 |
- A. Determine the days’ cash on hand for Amazon and Netflix. (Round all calculations to one decimal place.)
- B. Interpret the results.
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Assets
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assets
Net sales
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Happy Valley
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As at 31 March 2023
17,000
36,049
37,491
12,000
102,540
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427,627
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Happy Valley Restaurant Ltd., reported its financial information for the last financial year:
Forecasted Statements and Ratios
Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff
to advise customers and help them set up their new computers. Upton's balance sheet as of December 31, 2021, is shown here (millions of dollars):
$
Cash
Receivables
Inventories
Total current assets
Net fixed assets
million
%
$ 3.5 Accounts payable
26.0 Notes payable
58.0 Line of credit
$35.5
6.0
15.0
66.0
Total assets
$122.5
$122.5
Sales for 2021 were $350 million, and net income for the year was $10.5 million, so the firm's profit margin was 3.0%. Upton paid dividends of $4.2 million to
common stockholders, so its payout ratio was 40%. Its tax rate was 25%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous
liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2022. Do not round intermediate calculations.
$87.5 Accruals
35.0
a.…
What are the firm's days' sales outstanding for 2018 and 2019?
Income Statements ($ in millions)
Balance Sheets ($ in millions)
2018
2019 Assets
2018
2019
$1,265 | Cash
$780 Short-Term investments
$92 | Accounts rec.
Sales Revenue
$1,180
$35
$20
$660
$20
$5
Less: Cost of goods sold
Less: Operating Expenses
Less: Depreciation
Earnings before interest and taxes
Less: Interest paid
$75
190
235
$50 Inventory
$343 Total Current Assets
$40
250
300
$405
$495
$560
$170
$150 | Net fixed assets
990
1,105
Taxable Income
$235
$193
Less: Taxes (40%)
$94
$77 Total assets
$1,485
1,665
Net income
$141
$116 Liabilities and Owner's Equity
Dividends (45%)
Additions to Retained Earnings
$63
$52
2018
2019
$78
$64 Accounts payable
$125
$100
Accruals
$10
$10
Notes payable
35
40
Total Current Liabilities
$170
$150
Long-term debt
598
790
Total Liabilities
$768
$940
Common stock
554
498
Retained earnings
Total Equity
Total liab.& equity
163
$227
717
$725
$1,485
$1,665
Chapter 7 Solutions
Financial and Managerial Accounting - With CengageNow
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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