Week 4 EOC, Ch 4 Q3, Ch 5 Q2

a. Compare Rachel’s Cash % with the chain’s %.  Is it higher or lower?  What might this mean?

b. Compare Rachel’s Inventories % with the chain’s %.  Is it higher or lower?  What might this mean?

c. Compare Rachel’s Accounts Payable % with the chain’s %.  Is it higher or lower?  What might this mean?

d. Compare Rachel’s Notes Payable % with the chain’s %.  Is it higher or lower?  What might this mean?

Answers:

a. Rachels cash % is higher at 18.9%.

b. Rachels inventories % is higher at 11.4%

c. Rachesl accouts payable % is higher at 11.3%

d. Rachels notes payable % is higher at 2.5%

a. Did the change in Cash reflect a Source or a Use of funds? What was the amount of that change? 

b. Did the change in Net Receivables reflect a Source or a Use of funds? What was the amount of that change?

c. Did the change in Notes Payable reflect a Source or a Use of funds? What was the amount of that change?

d. Did the change in Retained Earnings reflect a Source or a Use of funds? What was the amount of that change?

e. What was the total amount of Sources and Uses of Funds?

Answers: 

a.  It was a use of fund with 14,000

b.  It was a use of funds with 40,000

c.   It was a use of funds with 44,000

d.  It was a source of funds 104,000

e.   Both balanced out to 743,000 it both sources and uses