Please help! Thank you. I am having trouble with the


Question Description:

30

Please help! Thank you. I am having trouble with the following: Inventory Turnover Accounts Receivable Turnover Days’ Sales in Receivables Rate of Return on Net Sales Rate of Return on Total Assets 000246778 Turner Task 319.1.3-01-10, 2.1-04, 2.5-05 Template Version 4.xlsx Company G Comparative Income Statements December 31, Years 12 and 11 NET SALES Cost of Merchandise Sold GROSS PROFIT Operating Expenses: Selling and Store Operating Pre-Opening General and Administrative Total Operating Expenses OPERATING INCOME Interest Income (Expense): Interest Income Less: Interest Expense Interest, net EARNINGS BEFORE INCOME TAXES The below rules are from Financial Accounting Principles, Wild, 18th ed. Horizontal Analysis Change % Inc (Dec) 10,976,550 8.87% 6,404,721 7.41% 4,571,829 12.28% Year 12 134,684,550 92,813,721 41,870,829 Year 11 123,708,000 86,409,000 37,299,000 25,827,000 222000 2,316,000 28,365,000 13,505,829 23,478,000 267000 2,163,000 25,908,000 11,391,000 2,349,000 -45,000 153,000 2,457,000 2,114,829 10.01% -16.85% 7.07% 9.48% 18.57% 183000 384000 -201000 13,304,829 117000 366000 -249000 11,142,000 66,000 18,000 48,000 2,162,829 56.41% 4.92% -19.28% 19.41% ↑↑↑ Apply the above mathematics rules to your work in this task. Enter — in the answer field when appropriate. Ratio Analysis: Provision for Income Taxes NET EARNINGS 5,052,000 8,252,829 4,419,000 6,723,000 633,000 1,529,829 14.33% 22.76% This column is not graded. It is provided for students to use as they analyze the ratios for the essay. Company G Year 12 Year 11 Quartile Industry Data Select Strength, Weakness, or No Concern Ratio: Current Ratio ASSETS Current Assets: Cash and Cash Equivalents Short-Term Investments Accounts Receivable, net Merchandise Inventory Other Current Assets Total Current Assets Property and Equipment, at cost: Land Buildings Furniture, Fixtures and Equipment Less Accumulated Depreciation Net Property and Equipment TOTAL ASSETS LIABILITIES Current Liabilities: Accounts and Notes Payable Accrued Salaries and Related Expense Sales and Income Taxes Payable Other Accrued Expenses Total Current Liabilities Long-Term Liabilities: Notes Payable Other Long-Term Liabilities Total Long-Term Liabilities Total Liabilities STOCKHOLDERS’ EQUITY: Common Stock ($1.00 Par) Paid In Capital Retained Earnings Treasury Stock (2,000,000 shares, at cost) Total Stockholders’ Equity TOTAL LIABILITIES and EQUITY 3.1 2.1 1.4 Weakness 0.43 0.64 1.6 0.9 0.6 Weakness 6.6 6.1 13 10.2 8.3 Strength Accounts Receivable Turnover 30.6 (This formula in Horngren only includes credit sales) 32.2 35.2 33.5 31.4 Weakness Day’s Sales in receivables 11.1 15.1 13.5 11.3 Strength 29.94% 28.34% 30.0% 45.0% 66.0% Strength Times-interest-earned ratio Year 12 1.86 Acid-Test Ratio Company G Comparative Balance Sheets December 31, Years 12 and 11 1.77 35.17 31.12 29.7 17.2 8.1 Strength Rate of return on net sales 10.03% 5.43% 7.55% 6.12% 4.20% Strength Rate of return on total assets 20.43% 12.30% 17.20% 12.30% 8.60% Strength Rate of return on common stockholder’s equity 18.48% 20.20% 18.60% 16.30% 12.80% Strength Earnings per share of common stock $1.03 $0.672 0.9 0.87 0.83 Strength Price earnings ratio $5.58 $5.21 7 6.3 5.5 Strength Book value per share of common stock $5.87 $4.25 6 5.5 4.9 Strength Year 11 Inventory Turnover 4,200,000 36,000 2,638,000 20,503,000 688000 28,065,000 5,562,000 162,000 2,686,000 15,534,000 393000 24,337,000 -1,362,000 -126,000 -48,000 4,969,000 295,000 3,728,000 -24.49% -77.78% -1.79% 31.99% 75.06% 15.32% 12,843,000 24,933,000 9,411,000 47,187,000 8,235,000 38,952,000 67,017,000 11,484,000 21,939,000 7,860,000 41,283,000 6,360,000 34,923,000 59,260,000 1,359,000 2,994,000 1,551,000 5,904,000 1,875,000 4,029,000 7,757,000 11.83% 13.65% 19.73% 14.30% 29.48% 11.54% 13.09% 10,160,000 1,869,000 1,233,000 2,619,000 15,881,000 7,938,000 1,656,000 1,290,000 2,166,000 13,050,000 2,222,000 213,000 -57,000 453,000 2,831,000 27.99%

Answer

30