Question

Refer to Samsung’s balance sheet in Appendix A. How does its cash (titled “Cash and cash equivalents”) compare with its other current assets (in both amount and percent) as of December 31, 2015? Compare and assess its cash at December 31, 2015, with its cash at December 31, 2014.

Short answer

Answer

The ending cash balance of 2014 is the opening cash and cash equivalent of 2015, i.e., $16,840,766. The changes in cash and cash equivalent in 2015 are greater than in 2014, which led 2015 ending balance of $22,636,744.

Step-by-step solution

Step-by-Step SolutionStep 1: Introduction to topic

Cash and cash equivalents: Cash and cash equivalents have a place on the balance sheet. It includes the cash, or the assets that are equivalent to cash means they can be easily convertible into cash.

Comparing and assessing cash of 2014 and 2015-

	2014	2015
Cash and Cash equivalent at the beginning	$16,284,780	$16,840,766
Net change in cash and cash equivalent	$555,986	$5,795,978
Cash and Cash equivalent at the end	$16,840,766	$22,636,744