The following are financial statements of Bramble Corp..
|Cost of goods sold||1,027,800|
|Selling and administrative expenses||918,600|
|Income tax expense||70,170|
|Net income||$ 124,330|
|Accounts receivable (net)||189,700|
|Total current assets||512,170|
|Plant assets (net)||590,700|
|Total assets||$ 1,102,870|
|Liabilities and Stockholders’ Equity|
|Accounts payable||$ 173,000|
|Income taxes payable||36,670|
|Total current liabilities||209,670|
|Total stockholders’ equity||673,300|
|Total liabilities and stockholders’ equity||$1,102,870|
Additional information: The net cash provided by operating activities for 2017 was $203,800. The cash used for capital expenditures was $107,400. The cash used for dividends was $32,170. The weighted-average number of shares outstanding during the year was 50,000.
|(a)||Compute the following values and ratios for 2017. (We provide the results from 2016 for comparative purposes.) (Round Current Ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)|
|(i)||Working capital. (2016: $160,500)|
|(ii)||Current ratio. (2016: 1.65:1)|
|(iii)||Free cash flow. (2016: $48,700)|
|(iv)||Debt to assets ratio. (2016: 31%)|
|(v)||Earnings per share. (2016: $3.15)|
|(iii)||Free cash flow||$|
|(iv)||Debt to assets ratio||%|
|(v)||Earnings per share||$|
The following information is available for Pharoah Company for three recent fiscal years.
|Cost of goods sold||1,532,544||1,277,699||936,594|
Calculate the inventory turnover, days in inventory, and gross profit rate for 2017 and 2016. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.)
|Days in Inventory||days||days|
|Gross Profit Rate||%||%|
Exercise 8-14 (Part Level Submission)
Suppose the following information was taken from the 2017 financial statements of FedEx Corporation, a major global transportation/delivery company.
|Accounts receivable (gross)||$ 3,408||$ 4,611|
|Accounts receivable (net)||3,144||4,284|
|Allowance for doubtful accounts||264||327|
|Total current assets||6,739||6,864|
Calculate the accounts receivable turnover and the average collection period for 2017 for FedEx Corporation. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)
|Accounts receivable turnover||times|
|The average collection period for 2017||days|
|Your answer is correct.|
Is accounts receivable a material component of the company’s total current assets?
Crane Company reports the following information (in millions) during a recent year: net sales, $10,185.0; net earnings, $250.0; total assets, ending, $5,130.0; and total assets, beginning, $5,150.0.
(a) Calculate the (1) return on assets, (2) asset turnover, and (3) profit margin. (Round answers to 1 decimal place, e.g. 6.2% and 6.2.)
|1.||Return on assets||%|