Refer to Research In Motions financial statements in Appendix A to answer the following. 1. What is

Question:

Refer to Research In Motion’s financial statements in Appendix A to answer the following.

1. What is the amount of Research In Motion’s accounts receivable as of February 27, 2010?

2. Compute Research In Motion’s accounts receivable turnover as of February 27, 2010.

3. How long does it take, on average, for the company to collect receivables? Do you believe that customers actually pay the amounts due within this short period? Explain.

4. Research In Motion’s most liquid assets include

(a) Cash and cash equivalents,

(b) Short-term investments, and

Compute the percentage that these liquid assets make up of current liabilities as of February 27, 2010. Do the same computations for February 28, 2009. Comment on the company’s ability to satisfy its current liabilities as of its 2010 fiscal year-end compared to its 2009 fiscal year-end.

5. What criteria did Research In Motion use to classify items as cash equivalents?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...