ACC 240 Lecture Notes - Lecture 10: Asset, Inventory Turnover, Asset Turnover

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indigolion532

17 May 2018

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receivable turnover ratio

net credit sales/ average net receivable

average collection period

365 days/ receivable turnover ratio

inventory turnover ratio

COGS/ average inventory

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average days in inventory

365 days/ inventory turnover ratio

current ratio

current assets/ current liabilities

acid- test ratio

cash+ net receivable + current investments/ current liabilities

debit to equity ratio

total liabilities/ total SE

times interest earned ratio

net income+ interest expense+ tax expense/ interest expense

gross profit ratio

gross profit/ net sales

return on assets

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I would love some help with finding the below ratios for Nike in 2017 10-K Section 4 â Ratio calculations and analysis http://s1.q4cdn.com/806093406/files/doc_financials/2017/ar/docs/nike-2017-form-10K.pdf

RATIO	FORMULA	CURRENT YEAR	PREVIOUS YEAR

Current Ratio	Current Assets Current Liabilities

Accounts Receivable Turnover	Net Total Sales Avg. Accounts Rec.

Inventory Turnover	Cost of Goods Sold Average Inventory

Gross Profit Margin	Gross Profit Net sales

Net Profit Margin	Net Income Net Sales

Return on Total Assets	Net Income Avg. Total Assets

Return on Stockholdersâ Equity	Net Income Avg. Stockholdersâ Eq.

Earnings Per Share	(given on annual report)

Market Price Per Share at Year End	(available at Yahoo.com and other websites)

Price/Earnings Ratio	Year End Market Price Earnings Per Share

Debt Ratio	Total Liabilities Total Assets

Equity Ratio	Total Stockholdersâ Eq. Total Assets

Times Interest Earned	Income before Int. + Tax Interest Expense

purpleserval964

THIS ASSIGNMENT IS BASED ON FORM 10-K WALGREENS BOOTS ALLIANCE,INC. FOR 2017.

https://www.sec.gov/Archives/edgar/data/1618921/000161892117000069/wba-2017831x10k.htm#sD544AA1057C23391F01B25BC6265E816

Compute Ratios See specific details below.

Based on formulas given, compute the following ratios in Excelfor two years.

1. Current ratio: current assets/current liabilities

2. Debt ratio: total debt/total assets

3. Gross profit margin

4. Times interest earned: (Earnings before Interest &Taxes)/Interest Expense

5. Accounts receivable (AR) turnover: Net Credit Sales/AverageAR Note: Av

6. Inventory turnover: Sales/Average Inventory Note: Averageinventory = (

7. Return on Sales: Net Income (before interest &taxes)/Sales

8. Asset Turnover: Sales/average total assets

9. Return on Assets: net profit/average total assets

B. Prepare a DuPont Analysis of ROE for two years, includingcomputations of

Return on Sales

Asset Turnover

Return on Assets

Financial Leverage

Return on Equity

C. Briefly evaluate the ratio trends. Indicate on your worksheetwhether each ratio is:

stronger / weaker

quicker /slower

more / less liquid

more / less risk

raspberryarmadillo107

Selected year-end financial statements of McCordCorporation follow. (All sales were on credit; selected balancesheet amounts at December 31, 2010, were inventory, $50,900; totalassets, $219,400; common stock, $80,000; and retained earnings,$52,348.)

McCORD CORPORATION Income Statement For Year Ended December 31, 2011
Sales	$	451,600
Cost of goods sold		296,950

Gross profit		154,650
Operating expenses		98,700
Interest expense		4,300

Income before taxes		51,650
Income taxes		20,807

Net income	$	30,843

McCORD CORPORATION Balance Sheet December 31, 2011
Assets			Liabilities and Equity
Cash	$	20,000	Accounts payable	$	24,500
Short-term investments		9,400	Accrued wages payable		3,600
Accounts receivable, net		29,400	Income taxes payable		3,400
Notes receivable (trade)*		6,000	Long-term note payable, secured
Merchandise inventory		32,150	by mortgage on plant assets		69,400
Prepaid expenses		2,850	Common stock		80,000
Plant assets, net		149,300	Retained earnings		68,200

Total assets	$	249,100	Total liabilities and equity	$	249,100

*These are short-term notes receivable arising from customer (trade)sales.

Required:

Compute thefollowing. (Use 365 days ayear. Do not round intermediate calculations and round your finalanswers to 1 decimal place. Omit the "%" sign in yourresponse):


(1)	Current ratio	to
(2)	Acid-test ratio	to
(3)	Days' sales uncollected	days
(4)	Inventory turnover	times
(5)	Days' sales in inventory	days
(6)	Debt-to-equity ratio	to
(7)	Times interest earned	times
(8)	Profit margin ratio	%
(9)	Total asset turnover	times
(10)	Return ontotal assets	%
(11)	Return on common stockholders' equity	%

pucemouse541

ACC 240 Lecture Notes - Lecture 10: Asset, Inventory Turnover, Asset Turnover

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