Response to the following problem:
The following information is from Nokia (www.Nokia.com), which is a leading global manufacturer of mobile devices and services.
|
EUR millions
|
Current Year
|
Prior Year
|
|
Cash ....................................
|
1,142
|
1,706
|
|
Accounts receivable .....................
|
7,981
|
9,444
|
|
Current assets ..............................
|
23,613
|
24,470
|
|
Total assets ..................................
|
35,738
|
39,582
|
|
Current liabilities
|
15,188
|
20,355
|
|
Shareholders' equity ...................
|
14,749
|
16310
|
|
Net sales
|
40,984
|
50,710
|
Required:
1. For each year, compute the percentage that cash represents of current assets, total assets, current liabilities, and shareholders' equity. Comment on any trends in these percentages.
2. Determine the percentage change between the current and prior year cash balances.
3. Compute the days' sales uncollected at the end of both the current year and the prior year. Has the collection of receivables improved? Explain.