How effective is the organization in collecting its receivables? Use the Hillside, Inc. Balance Sheet information in cells A2 through D18 and cells A21 through B38 to complete the Financial Performance Calculations in cells A40 through C60. Table 1: Hillside, Inc. Balance Sheet ($ in Millions) ASSETS LIABILITIES Cash & Marketable Securities 449.90 Accounts Payable 1,611.20 Accounts Receivable 954.80 Salaries Payable 225.20 Inventories 3,645.20 Other Current Liabilities 1,118.80 Other Current Assets 116.60 Total Current Liabilities 2,955.20 Total Current Assets 5,165.27 Other Liabilities 693.40 Machinery & Equipment 1,688.90 Land 1,129.70 Total Liabilities 3,648.60 Buildings 2,348.40 Depreciation (575.60) SHAREHOLDER'S EQUITY Property, Plant & Equip. - Net 4,591.40 Common Stock 828.50 Other Long Term Assets 120.90 Retained Earnings 5,401.70 Total Long-Term Assets 4,712.30 Total Shareholder's Equity 6,230.20 Total Assets 9,877.57 Total Liabilities & Equity 9,878.80 Table 2: Hillside, Inc. Income Statement ($ in Millions) Revenue 28,681.10 Cost Of Goods Sold 20,768.80 Gross Profit 7,912.30 Operating Expenses: Selling, General & Admin. 5,980.80 Depreciation 307.30 Operating income 1,624.20 Interest - Other Expense (Income) (13.10) Income Before Taxes 1,637.30 Income Taxes 618.10 Net Income 1,019.20 Number of Common Stock Shares Outstanding 1,032,271 Table 3: Financial Performance Calculations Liquidity Ratios No data Answers Current Ratio (times) No data 1.75 Quick Ratio (times) No data 0.48 Average Payment Period (days) No data 190.12 Asset Management Ratios No data Total Asset Turnover (times) No data 2.90 Average Collection Period (days) No data 12.15 Inventory Turnover (times) No data 5.70 Financial Leverage Ratios No data Total Debt to Total Assets No data 70.64% Equity Multiplier (times) No data 1.59 Profitability Ratios No data Operating Profit Margin No data 0.06 Net Profit Margin No data 3.55% Return on Total Assets No data 10.32% Return on Equity No data 16.36% Earnings per Share No data 0.99

How effective is the organization in collecting its receivables? Use the Hillside, Inc. Balance Sheet information in cells A2 through D18 and cells A21 through B38 to complete the Financial Performance Calculations in cells A40 through C60. Table 1: Hillside, Inc. Balance Sheet ($ in Millions) ASSETS LIABILITIES Cash & Marketable Securities 449.90 Accounts Payable 1,611.20 Accounts Receivable 954.80 Salaries Payable 225.20 Inventories 3,645.20 Other Current Liabilities 1,118.80 Other Current Assets 116.60 Total Current Liabilities 2,955.20 Total Current Assets 5,165.27 Other Liabilities 693.40 Machinery & Equipment 1,688.90 Land 1,129.70 Total Liabilities 3,648.60 Buildings 2,348.40 Depreciation (575.60) SHAREHOLDER'S EQUITY Property, Plant & Equip. - Net 4,591.40 Common Stock 828.50 Other Long Term Assets 120.90 Retained Earnings 5,401.70 Total Long-Term Assets 4,712.30 Total Shareholder's Equity 6,230.20 Total Assets 9,877.57 Total Liabilities & Equity 9,878.80 Table 2: Hillside, Inc. Income Statement ($ in Millions) Revenue 28,681.10 Cost Of Goods Sold 20,768.80 Gross Profit 7,912.30 Operating Expenses: Selling, General & Admin. 5,980.80 Depreciation 307.30 Operating income 1,624.20 Interest - Other Expense (Income) (13.10) Income Before Taxes 1,637.30 Income Taxes 618.10 Net Income 1,019.20 Number of Common Stock Shares Outstanding 1,032,271 Table 3: Financial Performance Calculations Liquidity Ratios No data Answers Current Ratio (times) No data 1.75 Quick Ratio (times) No data 0.48 Average Payment Period (days) No data 190.12 Asset Management Ratios No data Total Asset Turnover (times) No data 2.90 Average Collection Period (days) No data 12.15 Inventory Turnover (times) No data 5.70 Financial Leverage Ratios No data Total Debt to Total Assets No data 70.64% Equity Multiplier (times) No data 1.59 Profitability Ratios No data Operating Profit Margin No data 0.06 Net Profit Margin No data 3.55% Return on Total Assets No data 10.32% Return on Equity No data 16.36% Earnings per Share No data 0.99

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 9E

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How effective is the organization in collecting its receivables?

Use the Hillside, Inc. Balance Sheet information in cells A2 through D18 and cells A21 through B38 to complete the Financial Performance Calculations in cells A40 through C60.
Table 1: Hillside, Inc. Balance Sheet ($ in Millions)
ASSETS		LIABILITIES
Cash & Marketable Securities	449.90	Accounts Payable	1,611.20
Accounts Receivable	954.80	Salaries Payable	225.20
Inventories	3,645.20	Other Current Liabilities	1,118.80
Other Current Assets	116.60	Total Current Liabilities	2,955.20
Total Current Assets	5,165.27
		Other Liabilities	693.40
Machinery & Equipment	1,688.90
Land	1,129.70	Total Liabilities	3,648.60
Buildings	2,348.40
Depreciation	(575.60)	SHAREHOLDER'S EQUITY
Property, Plant & Equip. - Net	4,591.40	Common Stock	828.50
Other Long Term Assets	120.90	Retained Earnings	5,401.70
Total Long-Term Assets	4,712.30	Total Shareholder's Equity	6,230.20

Total Assets	9,877.57	Total Liabilities & Equity	9,878.80


Table 2: Hillside, Inc. Income Statement ($ in Millions)
Revenue	28,681.10
Cost Of Goods Sold	20,768.80
Gross Profit	7,912.30

Operating Expenses:
Selling, General & Admin.	5,980.80
Depreciation	307.30
Operating income	1,624.20

Interest	-
Other Expense (Income)	(13.10)
Income Before Taxes	1,637.30
Income Taxes	618.10
Net Income	1,019.20

Number of Common Stock
Shares Outstanding	1,032,271

Table 3: Financial Performance Calculations
Liquidity Ratios	No data	Answers
Current Ratio (times)	No data	1.75
Quick Ratio (times)	No data	0.48
Average Payment Period (days)	No data	190.12

Asset Management Ratios	No data
Total Asset Turnover (times)	No data	2.90
Average Collection Period (days)	No data	12.15
Inventory Turnover (times)	No data	5.70

Financial Leverage Ratios	No data
Total Debt to Total Assets	No data	70.64%
Equity Multiplier (times)	No data	1.59

Profitability Ratios	No data
Operating Profit Margin	No data	0.06
Net Profit Margin	No data	3.55%
Return on Total Assets	No data	10.32%
Return on Equity	No data	16.36%
Earnings per Share	No data	0.99

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