Ratios Analysis: Hershey The Hershey Company is one of the world's leading producers of chocolates, candies, and confections. It sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey's consolidated balance sheets for 20X2 and 20X3 follow. Hershey: Consolidated Balance Sheets Dollar Amounts in Millions 20X2 20X3 Assets Current Assets Cash and Equivalents $728.3 $1,118.5 Receivables 461.4 477.9 Inventories 633.3 659.5 Deferred Income Taxes 122.2 52.5 Prepaid Expenses and Other Assets 168.3 178.9 Total Current Assets $2,113.5 $2,487.3 Property, Plant and Equipment, Net 1,674.1 1,805.3 Goodwill 588.0 576.6 Other Intangible Assets, net 214.7 195.2 Other Assets 164.5 293.0 Total Assets $4,754.8 $5,357.5 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $442.0 $461.5 Accrued Liabilities 650.9 699.7 Accrued Income Taxes 2.3 79.9 Short-Term Debt 118.2 166.0 Current Portion of Long-Term Debt 257.7 0.9 Total Current Liabilities $1,471.1 $1,408.0 Long-Term Debt 1,531.0 1,795.1 Other Long-Term Liabilities 668.7 434.1 Deferred Income Taxes 35.7 104.2 Total Liabilities $3,706.5 $3,741.4 Shareholders' Equity Common Stock 359.9 359.9 Additional Paid-In Capital 593.0 664.9 Retained Earnings 5,027.6 5,454.3 Treasury Stock (at cost) (4,558.7) (4,707.7) Accumulated Other Comprehensive Loss (385.1) (166.6) Noncontrolling interests 11.6 11.2 Total Shareholders' Equity $1,048.4 $1,616.1 Total Liabilities and Shareholders' Equity $4,754.8 $5,357.5 Additional information for 20X3 is as follows (amounts in millions): Total credit sales (all on credit) $7,146.1 Costs of goods sold 3,865.2 Net income 820.5 Required: Next Level Compute the following ratios for 20X3. Provide a brief description of what each ratio reveals about Hershey. Return on common equity (Round your answer to three decimal places.) Debt-to-assets (Round your answer to three decimal places.) Debt-to-equity (Round your answer to two decimal places.) Current (Round your answer to two decimal places.) Quick (Round your answer to two decimal places.) Inventory turnover days (Use 365 days. Round your answer to nearest whole number.) days Accounts receivable turnover days (Use 365 days. Round your answer to nearest whole number.) days Accounts payable turnover days (Use 365 days. Round your answer to nearest whole number.) days Operating cycle (in days) (Use 365 days. Round your answer to nearest whole number.) days Total asset turnover (Round your answer to two decimal places.)
Ratios Analysis: Hershey The Hershey Company is one of the world's leading producers of chocolates, candies, and confections. It sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey's consolidated balance sheets for 20X2 and 20X3 follow. Hershey: Consolidated Balance Sheets Dollar Amounts in Millions 20X2 20X3 Assets Current Assets Cash and Equivalents $728.3 $1,118.5 Receivables 461.4 477.9 Inventories 633.3 659.5 Deferred Income Taxes 122.2 52.5 Prepaid Expenses and Other Assets 168.3 178.9 Total Current Assets $2,113.5 $2,487.3 Property, Plant and Equipment, Net 1,674.1 1,805.3 Goodwill 588.0 576.6 Other Intangible Assets, net 214.7 195.2 Other Assets 164.5 293.0 Total Assets $4,754.8 $5,357.5 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $442.0 $461.5 Accrued Liabilities 650.9 699.7 Accrued Income Taxes 2.3 79.9 Short-Term Debt 118.2 166.0 Current Portion of Long-Term Debt 257.7 0.9 Total Current Liabilities $1,471.1 $1,408.0 Long-Term Debt 1,531.0 1,795.1 Other Long-Term Liabilities 668.7 434.1 Deferred Income Taxes 35.7 104.2 Total Liabilities $3,706.5 $3,741.4 Shareholders' Equity Common Stock 359.9 359.9 Additional Paid-In Capital 593.0 664.9 Retained Earnings 5,027.6 5,454.3 Treasury Stock (at cost) (4,558.7) (4,707.7) Accumulated Other Comprehensive Loss (385.1) (166.6) Noncontrolling interests 11.6 11.2 Total Shareholders' Equity $1,048.4 $1,616.1 Total Liabilities and Shareholders' Equity $4,754.8 $5,357.5 Additional information for 20X3 is as follows (amounts in millions): Total credit sales (all on credit) $7,146.1 Costs of goods sold 3,865.2 Net income 820.5 Required: Next Level Compute the following ratios for 20X3. Provide a brief description of what each ratio reveals about Hershey. Return on common equity (Round your answer to three decimal places.) Debt-to-assets (Round your answer to three decimal places.) Debt-to-equity (Round your answer to two decimal places.) Current (Round your answer to two decimal places.) Quick (Round your answer to two decimal places.) Inventory turnover days (Use 365 days. Round your answer to nearest whole number.) days Accounts receivable turnover days (Use 365 days. Round your answer to nearest whole number.) days Accounts payable turnover days (Use 365 days. Round your answer to nearest whole number.) days Operating cycle (in days) (Use 365 days. Round your answer to nearest whole number.) days Total asset turnover (Round your answer to two decimal places.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 18P: Use the following information for P417 and P418: The Hershey Company is one of the worlds leading...
Related questions
Question
Ratios Analysis: Hershey
The Hershey Company is one of the world's leading producers of chocolates, candies, and confections. It sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey's consolidated balance sheets for 20X2 and 20X3 follow.
Hershey: Consolidated Balance Sheets | ||
Dollar Amounts in Millions | ||
20X2 | 20X3 | |
Assets | ||
Current Assets | ||
Cash and Equivalents | $728.3 | $1,118.5 |
Receivables | 461.4 | 477.9 |
Inventories | 633.3 | 659.5 |
122.2 | 52.5 | |
Prepaid Expenses and Other Assets | 168.3 | 178.9 |
Total Current Assets | $2,113.5 | $2,487.3 |
Property, Plant and Equipment, Net | 1,674.1 | 1,805.3 |
588.0 | 576.6 | |
Other Intangible Assets, net | 214.7 | 195.2 |
Other Assets | 164.5 | 293.0 |
Total Assets | $4,754.8 | $5,357.5 |
Liabilities and Shareholders' Equity | ||
Current Liabilities | ||
Accounts Payable | $442.0 | $461.5 |
Accrued Liabilities | 650.9 | 699.7 |
Accrued Income Taxes | 2.3 | 79.9 |
Short-Term Debt | 118.2 | 166.0 |
Current Portion of Long-Term Debt | 257.7 | 0.9 |
Total Current Liabilities | $1,471.1 | $1,408.0 |
Long-Term Debt | 1,531.0 | 1,795.1 |
Other Long-Term Liabilities | 668.7 | 434.1 |
Deferred Income Taxes | 35.7 | 104.2 |
Total Liabilities | $3,706.5 | $3,741.4 |
Shareholders' Equity | ||
Common Stock | 359.9 | 359.9 |
Additional Paid-In Capital | 593.0 | 664.9 |
5,027.6 | 5,454.3 | |
(4,558.7) | (4,707.7) | |
Accumulated Other Comprehensive Loss | (385.1) | (166.6) |
Noncontrolling interests | 11.6 | 11.2 |
Total Shareholders' Equity | $1,048.4 | $1,616.1 |
Total Liabilities and Shareholders' Equity | $4,754.8 | $5,357.5 |
Additional information for 20X3 is as follows (amounts in millions):
Total credit sales (all on credit) | $7,146.1 |
Costs of goods sold | 3,865.2 |
Net income | 820.5 |
Required:
Next Level Compute the following ratios for 20X3. Provide a brief description of what each ratio reveals about Hershey.
- Return on common equity (Round your answer to three decimal places.)
- Debt-to-assets (Round your answer to three decimal places.)
- Debt-to-equity (Round your answer to two decimal places.)
- Current (Round your answer to two decimal places.)
- Quick (Round your answer to two decimal places.)
- Inventory turnover days (Use 365 days. Round your answer to nearest whole number.) days
- Accounts receivable turnover days (Use 365 days. Round your answer to nearest whole number.) days
- Accounts payable turnover days (Use 365 days. Round your answer to nearest whole number.) days
- Operating cycle (in days) (Use 365 days. Round your answer to nearest whole number.) days
- Total asset turnover (Round your answer to two decimal places.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 4 images
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
Accounts payable turnover days (Use 365 days. Round your answer to nearest whole number.)
Solution
by Bartleby Expert
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub