Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 17, Problem 1FSA
Financial Statement Analysis
The financial statements for Nike, Inc., are presented in Appendix C at the end of the text. The following additional information (in thousands) is available:
Instructions
- 1. Determine the following measures for the fiscal years ended May 31, 2013 (fiscal 2012), and May 31, 2012 (fiscal 2011), rounding 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. Ratio of sales to assets
- j. Rate earned on total assets, assuming interest expense is $23 million for the year ending May 31, 2013, and $31 million for the year ending May 31, 2012
- k. Rate earned on common stockholders’ equity
- l. Price-earnings ratio, assuming that the market price was $61.66 per share on May 31, 2013, and $53.10 per share on May 31, 2012
- m. Percentage relationship of net income to sales
- a.
- 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).
FINANCIAL RATIO:
Requirement: Compute for the following financial ratios for the year 2021 (round-off answers to two decimal places)
a. Current ratio
b. Quick (Acid-test) ratio
c. Working capital
d. Inventory turnover
e. Days of inventory (use 365 days)
f. Accounts receivable turnover (assume all sales are on credit)
g. Days of receivable (use 365 days)
h. Debt ratio
i. Equity ratio
j. Debt-to-equity ratio
k. Gross profit ratio
1. Net profit ratio
m. Return on assets
n. Return on equity
FINANCIAL RATIO:
Requirement: Compute for the following financial ratios for the year 2021 (round-off answers to two decimal places)
f. Accounts receivable turnover (assume all sales are on credit)
g. Days of receivable (use 365 days)
h. Debt ratio
i. Equity ratio
j. Debt-to-equity ratio
k. Gross profit ratio
1. Net profit ratio
m. Return on assets
n. Return on equity
Chapter 17 Solutions
Financial Accounting
Ch. 17 - Prob. 1DQCh. 17 - What is the advantage of using comparative...Ch. 17 - Prob. 3DQCh. 17 - How would the current and quick ratios of a...Ch. 17 - Prob. 5DQCh. 17 - What do the following data, taken from a...Ch. 17 - a. How does the rate earned on total assets differ...Ch. 17 - Kroger, a grocery store, recently had a...Ch. 17 - Prob. 9DQCh. 17 - Prob. 10DQ
Ch. 17 - Prob. 1PEACh. 17 - Prob. 1PEBCh. 17 - Prob. 2PEACh. 17 - Vertical analysis Income statement information for...Ch. 17 - Prob. 3PEACh. 17 - Prob. 3PEBCh. 17 - Prob. 4PEACh. 17 - Prob. 4PEBCh. 17 - Prob. 5PEACh. 17 - Inventory analysis A company reports the...Ch. 17 - Prob. 6PEACh. 17 - Prob. 6PEBCh. 17 - Times interest earned A company reports the...Ch. 17 - Times interest earned A company reports the...Ch. 17 - Asset turnover A company reports the following:...Ch. 17 - Asset turnover A company reports the following:...Ch. 17 - Prob. 9PEACh. 17 - Prob. 9PEBCh. 17 - Common stockholders' profitability analysis A...Ch. 17 - Common stockholders' profitability analysis A...Ch. 17 - Earnings per share and price-earnings ratio A...Ch. 17 - Earnings per share and price-earnings ratio A...Ch. 17 - Revenue and expense data for Gresham Inc. for two...Ch. 17 - Prob. 2ECh. 17 - Common-sized income statement Revenue and expense...Ch. 17 - Prob. 4ECh. 17 - Prob. 5ECh. 17 - The following data were taken from the balance...Ch. 17 - Prob. 7ECh. 17 - The bond indenture for the 10-year, 9% debenture...Ch. 17 - The following data are taken from the financial...Ch. 17 - Prob. 10ECh. 17 - The following data were extracted from the income...Ch. 17 - Prob. 12ECh. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Hasbro and Mattel, Inc., are the two largest toy...Ch. 17 - Ratio of liabilities to stockholders equity and...Ch. 17 - Three major segments of the transportation...Ch. 17 - Prob. 17ECh. 17 - Profitability ratios Ralph Lauren Corporation...Ch. 17 - The following data were taken from the financial...Ch. 17 - The balance sheet for Garcon Inc. at the end of...Ch. 17 - Earnings per share, price-earnings ratio, dividend...Ch. 17 - The table that follows shows the stock price,...Ch. 17 - Earnings per share, discontinued operations The...Ch. 17 - Prob. 24ECh. 17 - Prob. 25ECh. 17 - Unusual items Explain whether Colston Company...Ch. 17 - Prob. 1PACh. 17 - For 2016, Indigo Company initiated a sales...Ch. 17 - Effect of transactions on current position...Ch. 17 - The comparative financial statements of Bettancort...Ch. 17 - Addai Company has provided the following...Ch. 17 - Prob. 1PBCh. 17 - Prob. 2PBCh. 17 - Effect of transactions on current position...Ch. 17 - Prob. 4PBCh. 17 - Crosby Company has provided the following...Ch. 17 - Financial Statement Analysis The financial...Ch. 17 - Prob. 1CPCh. 17 - Prob. 2CPCh. 17 - The condensed income statements through income...Ch. 17 - Prob. 4CPCh. 17 - Marriott International, Inc., and Hyatt Hotels...
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