Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 3, Problem 3.17P
Calculate profitability measures using annual report data Using data from the financial statements of Campbell Soup Company in the appendix, calculate the following:
ROI for 2014. Round your percentage answer to one decimal place.- ROE for 2014. Round your percentage answer to one decimal place.
Working capital at August 3, 2014, and July 28, 2013.Current ratio at August 3, 2014, and July 28, 2013. Round your answers to two decimal places.- Acid-test ratio at August 3, 2014, and July 28, 2013. Round your answers to two decimal places.
Note: Visit campbellsouD.com to update this problem with data from the most recent annual report.
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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).
Complete the horizontal analysis below. Use the name of the company you belong to in your iLS Activity. Round off your answers to the nearest hundredths.
Name: Income Statement for the years ending
December 31, 201X and December 31, 201Y
2015
2016
Annual Percentage
Growth 2015-2016
Sales
475,000
500,000
1.
Cost of Goods Sold
265,000
269,000
2.
Gross Profit
210,000
231,000
3.
Wages
154,000
163,000
4.
Repairs
5,800
4,150
5.
Rent
13,000
12,000
6.
Taxes
16,940
17,930
7.
Office Expenses
1,023
587
8.
Total…
Complete the horizontal analysis below. Use the name of the company you belong to in your iLS Activity. Round off your answers to the nearest hundredths.
Name: Income Statement for the years ending
December 31, 201X and December 31, 201Y
2015
2016
Annual Percentage
Growth 2015-2016
Sales
475,000
500,000
1.
Cost of Goods Sold
265,000
269,000
2.
Gross Profit
210,000
231,000
3.
Wages
154,000
163,000
4.
Repairs
5,800
4,150
5.
Rent
13,000
12,000
6.
Taxes
16,940
17,930
7.
Office Expenses
1,023
587
8.
Total…
Chapter 3 Solutions
Accounting: What the Numbers Mean
Ch. 3 - Prob. 3.1MECh. 3 - Mini-Exercise 3.2 LO 3 ROI analysis using the...Ch. 3 - Mini-Exercise 3.3 LO 4 Calculate ROE Firm L had...Ch. 3 - Prob. 3.4MECh. 3 - Mini-Exercise 3.5 LO 6 Calculate current...Ch. 3 - Mini-Exercise 3.6 LO 6 Calculate working capital...Ch. 3 - Exercise 3.7 LO 2 Compare investment alternatives...Ch. 3 - Prob. 3.8ECh. 3 - Exercise 3.9 LO 2 Compare investment alternatives...Ch. 3 - Exercise 3.10 LO 2 Compare investment alternatives...
Ch. 3 - Exercise 3.11 LO 3 ROI analysis using the DuPont...Ch. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Exercise 3.15 LO 6 Effect of transactions on...Ch. 3 - Exercise 3.16 LO 6 Effect of transactions on...Ch. 3 - Calculate profitability measures using annual...Ch. 3 - Prob. 3.18PCh. 3 - Problem 3.19 LO 6 Calculate and analyze liquidity...Ch. 3 - Problem 3.20 LO 6 Calculate and analyze liquidity...Ch. 3 - Problem 3.21 LO 3 Applications of ROI using the...Ch. 3 - Prob. 3.22PCh. 3 - Case 3.23 LO 3. 4, 6, 2 Focus company-analysis of...Ch. 3 - Case 3.24 LO 3, 4, 6, 7 Analysis of liquidity' and...
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