Bundle: Financial & Managerial Accounting, 14th + Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th + Working Papers, ... & Managerial Accounting, 14th + CengageNOWv2,
14th Edition
ISBN: 9781337804011
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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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 |
| 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, 14th + Working Papers for Warren/Reeve/Duchac's Corporate Financial Accounting, 14th + Working Papers, ... & Managerial Accounting, 14th + CengageNOWv2,
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
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