Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 14, Problem 2TIF
Real-world annual report
The financial statements for Nike, Inc. (NKE), are presented in Appendix E at the end of the text. The following additional information is available (in thousands):
Instructions
- 1. Determine the following measures for the fiscal years ended May 31, 2017, and May 31, 2016. Round ratios and percentages to one decimal place.
- a.
Working capital - b.
Current ratio - c. Quick ratio
- d.
Accounts receivable turnover - e. Number of days’ sales in receivables
- f. Inventory turnover
- g. Number of days’ sales in inventory'
- h. Ratio of liabilities to stockholders’ equity
- i. Asset turnover
- j. Return on total assets, assuming interest expense is $82 million for the year ending May 31. 2017, and $33 million for the year ending May 31, 2016.
- k. k. Return on common stockholders’ equity
- l. Price-eamings ratio, assuming that the market price was $52.81 per share on May 31, 2017, and $54.35 per share on May 31, 2016.
- m. m. Percentage relationship of net income to sales
- 2. What conclusions can be drawn from these analyses?
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Access the February 21, 2017, filing of the December 31, 2016, 10-K report of The Hershey Company (ticker: HSY) at SEC.gov and complete the following requirements. Required Compute or identify the following profitability ratios of Hershey for its years ending December 31, 2016, and December 31, 2015. Interpret its profitability using the results obtained for these two years. 1. Profit margin ratio (round the percent to one decimal). 2. Gross profit ratio (round the percent to one decimal). 3. Return on total assets (round the percent to one decimal). (Total assets at year-end 2014 were $5,622,870 in thousands.) 4. Return on common stockholders’ equity (round the percent to one decimal). (Total shareholders’ equity at year-end 2014 was $1,519,530 in thousands.) 5. Basic net income per common share (round to the nearest cent).
Instructions
Using the financial statements and additional information, compute the following ratios for the El
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Computations
1. Current ratio
2. Return on common stockholders' equity
3.
Price-earnings ratio
4.
Inventory turnover
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Times interest earned
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Profit margin
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Chapter 14 Solutions
Financial And Managerial Accounting
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - How would the current and quick ratios of a...Ch. 14 - Prob. 5DQCh. 14 - What do the following data, taken from a...Ch. 14 - A. How does the return on total assets differ from...Ch. 14 - The Kroger Company (KR), a grocery store chain,...Ch. 14 - The dividend yield of Suburban Propane Partners,...Ch. 14 - Prob. 10DQ
Ch. 14 - Prob. 1BECh. 14 - Income statement information for Einsworth...Ch. 14 - Prob. 3BECh. 14 - A company reports the following: Determine (a) the...Ch. 14 - Prob. 5BECh. 14 - Prob. 6BECh. 14 - A company reports the following: Determine the...Ch. 14 - A company reports the following: Determine the...Ch. 14 - Prob. 9BECh. 14 - A company reports the following: Determine (a) the...Ch. 14 - Prob. 11BECh. 14 - Vertical analysis of income statement Revenue and...Ch. 14 - The following comparative income statement (in...Ch. 14 - Common-sized income statement Revenue and expense...Ch. 14 - Prob. 4ECh. 14 - Prob. 5ECh. 14 - The following data were taken from the balance...Ch. 14 - PepsiCo, Inc. (PEP), the parent company of...Ch. 14 - Current position analysis The bond indenture for...Ch. 14 - Accounts receivable analysis The following data...Ch. 14 - Prob. 10ECh. 14 - Inventory analysis The following data were...Ch. 14 - Inventory analysis QT, Inc. and Elppa Computers,...Ch. 14 - Ratio of liabilities to stockholders equity and...Ch. 14 - Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), are...Ch. 14 - Recent balance sheet information for two companies...Ch. 14 - Prob. 16ECh. 14 - The following selected data were taken from the...Ch. 14 - Ralph Lauren Corporation (RL) sells apparel...Ch. 14 - Six measures of solvency or profitability Obj. 4,...Ch. 14 - Five measures of solvency or profitability The...Ch. 14 - Prob. 21ECh. 14 - The table that follows shows the stock price,...Ch. 14 - Earnings per share, discontinued operations The...Ch. 14 - Income statement and earnings per share for...Ch. 14 - Unusual items Explain whether Colston Company...Ch. 14 - Comprehensive income Anson Industries, Inc.,...Ch. 14 - Prob. 1PACh. 14 - Prob. 2PACh. 14 - Effect of transactions on current position...Ch. 14 - Measures of liquidity, solvency, and profitability...Ch. 14 - Solvency and profitability trend analysis Addai...Ch. 14 - Horizontal analysis of income statement For 20Y2,...Ch. 14 - Prob. 2PBCh. 14 - Effect of transactions on current position...Ch. 14 - Prob. 4PBCh. 14 - Solvency and profitability trend analysis Crosby...Ch. 14 - Prob. 1MADCh. 14 - Prob. 2MADCh. 14 - Deere Company (DE) manufactures and distributes...Ch. 14 - Marriott International, Inc. (MAR), and Hyatt...Ch. 14 - Prob. 1TIFCh. 14 - Real-world annual report The financial statements...Ch. 14 - Prob. 3TIF
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