Class 16 Ratio Analysis Problem Set 3 Kroger and Sprouts Solution

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Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).     TargetCorporation   Wal-MartStores, Inc.     Income Statement Data for Year Net sales     $66,400     $414,000   Cost of goods sold     45,000     302,000   Selling and administrative expenses     15,500     81,000   Interest expense     650     1,900   Other income (expense)     (80 )   (400 ) Income tax expense     1,400     7,300   Net income     $ 3,770     $ 21,400                       Balance Sheet Data(End of Year) Current assets     $17,000     $47,000   Noncurrent assets     26,700     120,000   Total assets     $43,700     $167,000   Current liabilities     $11,000     $56,000   Long-term debt     16,800     45,000   Total stockholders’ equity     15,900     66,000   Total liabilities and stockholders’ equity     $43,700     $167,000…

Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).     TargetCorporation   Wal-MartStores, Inc.     Income Statement Data for Year Net sales     $66,400     $414,000   Cost of goods sold     45,000     302,000   Selling and administrative expenses     15,500     81,000   Interest expense     650     1,900   Other income (expense)     (80 )   (400 ) Income tax expense     1,400     7,300   Net income     $ 3,770     $ 21,400                       Balance Sheet Data(End of Year) Current assets     $17,000     $47,000   Noncurrent assets     26,700     120,000   Total assets     $43,700     $167,000   Current liabilities     $11,000     $56,000   Long-term debt     16,800     45,000   Total stockholders’ equity     15,900     66,000   Total liabilities and stockholders’ equity     $43,700     $167,000…

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Russell Department Stores, Inc. Income Statement Compared with Industry Average Year Ended December 31, 2018   Russell Industry Average Net sales revenue $780,000 100.0 % Cost of goods sold 524,940 65.8 Gross Profit 255,060 34.2 Operating Expenses 162,240 19.7 Operating Income 92,820 14.5 Other Expenses 7,800 0.4 Net Income 85,020 14.1 % MORE INFO:       Russell/industry average Total Assets $480,000 100.0 % total Liabilities 327,360 64.7 total Liabilities and Stockholders' Equity $480,000 100.0 %   SOLVE for % of total (round total to one decimal place x.x%)   Amount Percent of total Net Sales Revenue 780,000   Cost of goods sold 524,940   gross profit 255,060   operating expenses 162240   operating income 92820   other expenses 7800

Suppose selected comparative statement data for the giant bookseller Barnes & Noble are as follows. All balance sheet data are as of the end of the fiscal year (in millions).     2022   2021 Net sales   $5,250.5   $5,600.7 Cost of goods sold   3,000.0   3,800.7 Net income   85.3   160.6 Accounts receivable   75.1   100.0 Inventory   1,250.1   1,350.1 Total assets   2,850.0   3,150.0 Total common stockholders’ equity   880.0   1,100.5 Compute the following ratios for 2022. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)   Profit margin   enter profit margin in percentages rounded to 1 decimal places  % (b)   Asset turnover   enter a number for asset turnover in times rounded to 2 decimal places  times (c)   Return on assets   enter return on assets in percentages rounded to 1 decimal place  % (d)   Return on common stockholders’ equity   enter…

Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).     TargetCorporation   Wal-MartStores, Inc.     Income Statement Data for Year Net sales     $65,300     $417,000   Cost of goods sold     45,000     301,000   Selling and administrative expenses     14,000     79,000   Interest expense     660     1,800   Other income (expense)     (85 )   (380 ) Income tax expense     1,500     7,100   Net income     $ 4,055     $ 27,720                       Balance Sheet Data(End of Year) Current assets     $16,000     $50,000   Noncurrent assets     27,400     121,000   Total assets     $43,400     $171,000   Current liabilities     $11,000     $54,000   Long-term debt     17,800     43,000   Total stockholders’ equity     14,600     74,000   Total liabilities and stockholders’ equity     $43,400     $171,000…

Selected hypothetical comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions).     2022   2021 Net sales   $4,850.1   $5,400.5 Cost of goods sold   3,700.7   3,500.4 Net income   75.2   100.0 Accounts receivable   75.1   109.9 Inventory   1,150.0   1,250.0 Total assets   2,950.1   3,250.1 Total common stockholders’ equity   920.4   1,090.4 Compute the following ratios for 2022. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%)

Selected hypothetical comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions).     2022   2021 Net sales   $5,050.3   $4,900.0 Cost of goods sold   3,300.3   4,201.1 Net income   65.1   100.0 Accounts receivable   75.1   102.2 Inventory   1,150.0   1,250.0 Total assets   2,850.0   3,150.0 Total common stockholders’ equity   900.2   1,140.9 Compute the following ratios for 2022. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)   Profit margin   enter profit margin in percentages rounded to 1 decimal place  % (b)   Asset turnover   enter asset turnover in times rounded to 2 decimal places  times (c)   Return on assets   enter return on assets in percentages rounded to 1 decimal place  % (d)   Return on common stockholders’ equity   enter return on common…

Assume figures were presented for the past 5 years on merchandise sold at Chicago department and discount stores ($ million). Sales in 2022 were $3,154; in 2021, $3,414; in 2020, $3,208; in 2019, $3,152; and in 2018, $3,216. Using 2018 as the base year, complete a trend analysis. (Round your answers to the nearest whole percent.) 2022 2021 2020 2019 2018 Sales $ 3,154 $ 3,414 $ 3,208 $ 3,152 $ 3,216 Sales (in percent) % % % 100 %

Selected hypothetical comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet data are as of the end of the fiscal year (in millions).     2022   2021 Net sales   $4,950.2   $5,700.8 Cost of goods sold   3,500.5   3,800.7 Net income   75.2   170.7 Accounts receivable   65.0   103.3 Inventory   1,150.0   1,350.1 Total assets   2,950.1   3,250.1 Total common stockholders’ equity   970.9   1,140.9 Compute the following ratios for 2022. (Round asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%) (a)   Profit margin   enter profit margin in percentages rounded to 1 decimal place  % (b)   Asset turnover   enter asset turnover in times rounded to 2 decimal places  times (c)   Return on assets   enter return on assets in percentages rounded to 1 decimal place  % (d)   Return on common stockholders’ equity   enter return on common…

calculate the gross profit and cost of goods sold for MBI for fiscal 2019?

Sprinkle Top Ltd. and Coffee Shop Inc. are both specialty food chains. The two companies reported these figures, in thousands: (Click the icon to view Sprinkle Top's financial statements.) (Click the icon to view Coffee Shop's financial statements.) Requirements 1. Compute gross profit percentage and the rate of inventory turnover for Sprinkle Top and Coffee Shop for 2020. 2. Based on these statistics, which company looks more profitable? Why? What other expense category should we consider in evaluating these two companies? Requirement 1. Compute gross profit percentage and the rate of inventory turnover for Sprinkle Top and Coffee Shop for 2020. (Round gross profit percentage to one decimal place, X.X%, and the inventory turnover rate to one decimal place, X.X.) Company Sprinkle Top Coffee Shop Gross profit percentage % % Inventory turnover rate times times

Coca-Cola and PepsiCo are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following information assumed to have been reported in their 2020, 2019, and 2018 annual reports (amounts in millions). Coca-Cola PepsiCo 2019 Fiscal Year Ended: 2020 2019 2018 2020 Net Sales $31,844 $36,857 3,383 68 $25,288 2,770 75 $ 49,251 3,904 82 $44,274 3,790 81 2018 $36,337 3,267 76 Accounts Receivable 3,161 67 Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance 3,094 3,315 2,695 3,822 3,709 3,191 Required: 1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2020 and 2019. (Consider a 365 days a year. Round your intermediate answers and final answers to 1 decimal place.) 2020 Coca-Cola PepsiCo Receivables turnover ratio Days to collect 2019 Receivables turnover ratio times…

The following table shows income statement and balance sheet data for five U.S. industries in 2017.   INCOME STATEMENT AND BALANCE SHEET FOR 2017SELECTED U.S. INDUSTRIES FOR 2017(Figures in $ billions)   Food   Pharmaceuticals   Oiland Coal   Computers andPeripherals   FoodStores Income Statement Data:                                       Sales $ 666.9     $ 427.5     $ 802.0     $ 216.0     $ 474.2   Cost of goods sold   596.1       352.4       757.8       189.7       451.0   Balance Sheet Data:                                       Inventory $ 67.8     $ 56.8     $ 44.2     $ 11.3     $ 27.9   Accounts receivable   56.6       68.1       52.8       23.7       7.4   Accounts payable   49.0       42.3       50.3       39.5       23.7       Note: Cost of goods sold includes selling, general, and administrative expenses. Source: U.S. Department of Commerce, Quarterly Financial Report for Manufacturing, Mining, Trade Corporations, and Selected Service Industries,…

8 Alimentation Couche-Tard Inc. is a leading convenience store operator in Canada, with Couche-Tard stores in Quebec and Mac's stores in central and western Canada. It also operates Circle K shops in the United States and Ingo automated fuel sites in Sweden and Denmark. Revenues Cost of sales Gross profit CONSOLIDATED STATEMENTS OF EARNINGS For the years ended April 24, 2022, April 25, 2021, and April 28, 2020 (in millions of U.S. dollars) Operating, selling, administrative, and general expenses (Gain) loss on disposal of property and equipment and other assets Depreciation, amortization, and impairment Total operating expenses Operating income Share of earnings of joint ventures and associated companies Net financial expenses Earnings before income taxes Income taxes Net earnings Revenues Cost of sales Gross profit $ $ 2022 28,000 23,699.2 4,300.8 3,304.0 (3.2) 2021 $ 27,590.0 23,619.8 3,970.2 3,145.3 (19.5) 284.2 3,410.0 560.2 63.4 111.8 2020 $ 24,310.0 20,298.9 4,011.1 3,060.6 299.6…

Kroger, Sprouts Farmers Market, Inc., and Whole Foods Markets, Inc. are three grocery chains in the United States. Inventory management is an important aspect of the grocery retail business. Recent balance sheets for these three companies indicated the following merchandise inventory (in millions) information:                                                  Kroger               Sprouts      WholeFoodsCost of merchandise sold        $85,512               $2,541         $9,973Inventory, end of year              5,688                   165              500Inventory, beginning of year    5,651                   143              441 a. Determine the inventory turnover. Round to two decimal places.b. Determine the days’ sales in inventory. Round to one decimal place.c. Interpret your results in parts (a) and (b).d. If Kroger had Whole Foods’ days’ sales in inventory, how much additional cash flow (rounded to nearest million) would have been generated from the smaller inventory relative to…

Here are comparative financial statement data for Oriole Company and Ivanhoe Company, two competitors. All data are as of December 31, 2027, and December 31, 2026. Oriole Company Ivanhoe Company 2027 2026 2027 2026 Net sales $1,774,000 $531,000 Cost of goods sold 961,508 298,953 Operating expenses 237,716 79,119 Interest expense 7,096 Income tax expense 62,090 3,717 29,736 Current assets 324,900 $314,400 82,400 $79,100 Plant assets (net) 523,200 510,000 139,000 127,800 Current liabilities 65.000 75,200 36,000 30,100 Long-term liabilities 116,200 89,000 29,300 25,500 Common stock, $10 par 491,000 491,000 121,000 121,000 Retained earnings 175,900 169.200 35,100 30,300 (a) Prepare 2027 income statements for both companies, then prepare a vertical analysis for each. (Round percentages to 1 decimal place, e.g. 2.5%.) (b1) Condensed Income Statement For the Year Ended December 31, 2027 Oriole Company Dollars $1,774,000 961,508 Ivanhoe Company Dollars Percent Percent % $531,000 % 298,953…

es Bigco Corporation is one of the nation's leading distributors of food and related products to restaurants, universities, hotels, and other customers. A simplified version of its recent income statement contained the following items (in millions). Cost of sales Income taxes Interest expense Net earnings Sales Earnings before income taxes Selling, general, and administration expense Other revenues Total expenses (excluding income taxes) Total revenues $ 11,631 319 34 1,193 16,240 1,512 3,493 430 15,158 16,670 Prepare an income statement for the year ended June 30, current year. (Hint: First order the items as they would appear on the income statement and then confirm the values of the subtotals and totals.) Note: Enter your answers in millions rather than in dollars (for example, 5,000 million should be entered as 5,000 rather than 5,000,000).

Compute the gross profit ratio on these financial accounting question

Landseeker's Restaurants reported cost of goods sold of $342 million and accounts payable of $64 million for 2020. In 2019, cost of goods sold was $278 million and accounts payable was $52 million. Landseeker's accounts payable turnover ratio in 2020 is closest to: Multiple Choice O 5.35 5.90 5.34 4.79

Here are comparative financial statement data for Bramble Company and Debra Company, two competitors. All data are as of December 31, 2022, and December 31, 2021.     Bramble Company   Debra Company     2022   2021   2022   2021 Net sales   $1,896,000       $561,000     Cost of goods sold   1,020,048       297,330     Operating expenses   257,856       79,662     Interest expense   7,584       3,927     Income tax expense   54,984       6,171     Current assets   322,500   $310,000   83,500   $78,000 Plant assets (net)   520,800   500,300   139,800   123,000 Current liabilities   64,200   75,600   34,400   29,600 Long-term liabilities   108,400   90,400   28,400   26,000 Common stock, $10 par   498,000   498,000   122,500   122,500 Retained earnings   172,700   146,300   38,000   22,900   Compute the 2022 return on assets and the return on common stockholders’ equity ratios for both companies. (Round answers to 1 decimal…

Here are comparative financial statement data for Bramble Company and Debra Company, two competitors. All data are as of December 31, 2022, and December 31, 2021.     Bramble Company   Debra company     2022   2021   2022   2021 Net sales   $1,896,000       $561,000     Cost of goods sold   1,020,048       297,330     Operating expenses   257,856       79,662     Interest expense   7,584       3,927     Income tax expense   54,984       6,171     Current assets   322,500   $310,000   83,500   $78,000 Plant assets (net)   520,800   500,300   139,800   123,000 Current liabilities   64,200   75,600   34,400   29,600 Long-term liabilities   108,400   90,400   28,400   26,000 Common stock, $10 par   498,000   498,000   122,500   122,500 Retained earnings   172,700   146,300   38,000   22,900 (a)     Prepare a vertical analysis of the 2022 income statement data for Bramble Company and Debra Company. (Round…