3 Period Ending September 24, 2016 September 26, 2015 September 27,2014 5 Assets
ID: 2539840 • Letter: 3
Question
3 Period Ending September 24, 2016 September 26, 2015 September 27,2014 5 Assets 6 Current Assets 7Cash And Cash Equivalents 8Short Term Investments 9 Net Receivables 10 Inventory 11 Other Current Assets 12 13 Total Current Assets 14 Long Term Investments 15 Property Plant and Equipment 16 Goodwill 17 Intangible Assets 18 Other Assets 19 Total Assets 20,484 46,671 29,299 21,120 S 20,481 35,889 2,349 13.844 11,233 17,460 8.283 23,883 106,869 170.430 27,010 89,378 164,065 22,471 68,531 130,162 20,624 3.893 3,206 8,757 3.764 231,839 321,686S 290,479S 21 Liabilities 22 Current Liabilities 23 Accounts Payable 24 Short/Current Long Term Dept 25 Deferred Revenue 26 Total Current Liabilities 27 Deferred Revenue Long Term 28 Long Term Debt 29 Other Noncurrent Liabilities 30 Total Liabilities 31 32 Stockholders' Equity 33 Common Stock 34 Retained Earnings 35 Other Stockholder Equity 60,671 10,999.00 8,940 80,610 3,624 53.463 33,427 171,124 48,649 6,308 8,491 63,448 3.031 28,987 24,826 120,292 59,32 $ 1,605 8,080 79,006 2,930 75,427 36,074 193,437 31,251 96,364 634 27.416 92,284 23.313 87,152 1,082 37 Total Stockholder Equity 128,249 119,355 111,547 39 Total Liabilities and Stockholder Equity 321,686 S 290,479 S 231,839 BS IS Analytical Procedures -RatiosExplanation / Answer
Risk 1: Short Term Investments
There has been a tremendous increase in the short term investments in the current year as compared to previous years. This is clearly reflected in the working capital as well. Short term investments are supposed to be liquid investments which is as good as cash and equivalents. A rise in that means that there are additional funds available which are invested outside business which might show a negative picture about the operations of the company.
Risk 2: Long Term Debt
Again there has been increase in the long term debt without simultaneous increase in the operations of the company. Long term finance is availed and it is quite possible that same is not invested in business but rather outside business. Also it might be possible that debt might have increased in last days and company must be looking to invest in business at the beginning of next financial year.
Risk 3: Research and Development Expense
This is consistently increasing by more than 20% each year without the results being reflected in the revenue of the company. It might be possible that company is investing in sources that might not be yielding adequate returns and hence it has to reconsider its spending on this account.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.