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(A)Prepare ratio analyses (for 2019, 2018, and 2017) for both companies.You should include the following ratios in your computations:  1. Profitability ratios Gross Profit margin Profit margin Return on assets Return on equity 2. Productivity Inventory Turnover Accounts Receivable Turnover PPE Turnover Asset Turnover 3. Solvency Debt-to-equity Times interest earned Return on Financial leverage 4. Liquidity Current Ratio Quick Ratio Operating cash flow to current liabilities Working capital

(A)Prepare ratio analyses (for 2019, 2018, and 2017) for both companies.You should include the following ratios in your computations:  1. Profitability ratios Gross Profit margin Profit margin Return on assets Return on equity 2. Productivity Inventory Turnover Accounts Receivable Turnover PPE Turnover Asset Turnover 3. Solvency Debt-to-equity Times interest earned Return on Financial leverage 4. Liquidity Current Ratio Quick Ratio Operating cash flow to current liabilities Working capital

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter7: Receivables And Investments
Section: Chapter Questions
Problem 7.11E
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(A)Prepare ratio analyses (for 2019, 2018, and 2017) for both companies.You should include the following ratios in your computations: 

1. Profitability ratios

Gross Profit margin

Profit margin

Return on assets

Return on equity

2. Productivity

Inventory Turnover

Accounts Receivable Turnover

PPE Turnover

Asset Turnover

3. Solvency

Debt-to-equity

Times interest earned

Return on Financial leverage

4. Liquidity

Current Ratio

Quick Ratio

Operating cash flow to current liabilities

Working capital

As Reported Annual Balance Sheet Report Date Scale 2019 Thousands 2018 2017 2016 Thousands Thousands Thousands Cash & temporary cash investments Store deposits in-transit 429,000 1,181,000 1,589,000 6,846,000 166,000 592,000 10,803,000 21,635,000 347,000 1,161,000 1,637,000 6,533,000 604,000 835,000 11,117,000 21,071,000 399,000 1,179,000 1,706,000 7,084,000 322,000 910,000 1,649,000 6,561,000 Receivables Inventory Assets held for sale 0.00 Prepaid & other current assets Total current assets 522,000 10,890,000 21,871,000 6,814,000 1,066,000 3,076,000 1,539,000 45,256,000 898,000 10,340,000 21,016,000 Property, plant & equipment, net Operating lease assets Intangibles, net 1,258,000 3,087,000 1,335,000 38,118,000 1,100,000 2,925,000 984,000 37,197,000 1,153,000 3,031,000 965,000 36,505,000 Goodwill Other assets Total assets Liabilities Current portion of long-term debt including obligations under finance lea Current portion of long-term debt including obligations under capital leas Current portion of operating lease liabilities Trade accounts payable Accrued salaries & wages 1,965,000 3,157,000 3,560,000 2,252,000 597,000 6,349,000 1,168,000 6,059,000 1,227,000 5,858,000 1,099,000 5,818,000 1,234,000 251,000 Deferred income taxes Liabilities held for sale 51,000 3,780,000 14,274,000 259,000 3,421,000 14,197,000 3,305,000 12,860,000 Other current liabilities 4,164,000 14,243,000 6,505,000 12,111,000 Total current liabilities Noncurrent operating lease liabilities Long-term debt including obligations under finance leases Long-term debt including obligations under capital leases & financing ok Deferred income taxes 1,466,000 608,000 1,750,000 36,683,000 12,072,000 1,562,000 494,000 1,881,000 30,283,000 12,029,000 1,568,000 792,000 1,706,000 30,292,000 11,825,000 1,927,000 1,524,000 1,659,000 29,795,000 Pension & postretirement benefit obligations Other long-term liabilities Total liabilities Common shares Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings (accumulated deficit) Common shares in treasury, at cost Noncontrolling interests Total equity (deficit) 1,918,000 3,245,000 (346,000) 19,681,000 16,612,000 (51,000) 7,835,000 1,918,000 3,161,000 1,918,000 3,337,000 (640,000) 20,978,000 16,991,000 (29,000) 8,573,000 (471,000) 17,007,000 14,684,000 (26,000) 6,905,000 1,918,000 3,070,000 (715,000) 15,543,000 13,118,000 12,000 6,710,000 Additional Information Net cash flows from operating activities 4,664,000 4,164,000 3,413,000 4,272,000 Land Buildings & land improvements Equipment Leasehold improvements Construction-in-progress Leased property under capital leases & financing obligations Total property, plant & equipment Accumulated depreciation & amortization Property, plant & equipment, net 3,299,000 12,553,000 15,031,000 10,832,000 3,166,000 966,000 45,847,000 23,976,000 21,871,000 3,254,000 12,245,000 14,277,000 10,306,000 2,716,000 1,066,000 43,864,000 22,229,000 21,635,000 3,201,000 12,072,000 13,635,000 9,773,000 2,050,000 1,000,000 41,731,000 20,660,000 21,071,000 3,197,000 11,643,000 13,495,000 9,342,000 1,979,000 932,000 40,588,000 19,572,000 21,016,000
Transcribed Image Text:As Reported Annual Balance Sheet Report Date Scale 2019 Thousands 2018 2017 2016 Thousands Thousands Thousands Cash & temporary cash investments Store deposits in-transit 429,000 1,181,000 1,589,000 6,846,000 166,000 592,000 10,803,000 21,635,000 347,000 1,161,000 1,637,000 6,533,000 604,000 835,000 11,117,000 21,071,000 399,000 1,179,000 1,706,000 7,084,000 322,000 910,000 1,649,000 6,561,000 Receivables Inventory Assets held for sale 0.00 Prepaid & other current assets Total current assets 522,000 10,890,000 21,871,000 6,814,000 1,066,000 3,076,000 1,539,000 45,256,000 898,000 10,340,000 21,016,000 Property, plant & equipment, net Operating lease assets Intangibles, net 1,258,000 3,087,000 1,335,000 38,118,000 1,100,000 2,925,000 984,000 37,197,000 1,153,000 3,031,000 965,000 36,505,000 Goodwill Other assets Total assets Liabilities Current portion of long-term debt including obligations under finance lea Current portion of long-term debt including obligations under capital leas Current portion of operating lease liabilities Trade accounts payable Accrued salaries & wages 1,965,000 3,157,000 3,560,000 2,252,000 597,000 6,349,000 1,168,000 6,059,000 1,227,000 5,858,000 1,099,000 5,818,000 1,234,000 251,000 Deferred income taxes Liabilities held for sale 51,000 3,780,000 14,274,000 259,000 3,421,000 14,197,000 3,305,000 12,860,000 Other current liabilities 4,164,000 14,243,000 6,505,000 12,111,000 Total current liabilities Noncurrent operating lease liabilities Long-term debt including obligations under finance leases Long-term debt including obligations under capital leases & financing ok Deferred income taxes 1,466,000 608,000 1,750,000 36,683,000 12,072,000 1,562,000 494,000 1,881,000 30,283,000 12,029,000 1,568,000 792,000 1,706,000 30,292,000 11,825,000 1,927,000 1,524,000 1,659,000 29,795,000 Pension & postretirement benefit obligations Other long-term liabilities Total liabilities Common shares Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings (accumulated deficit) Common shares in treasury, at cost Noncontrolling interests Total equity (deficit) 1,918,000 3,245,000 (346,000) 19,681,000 16,612,000 (51,000) 7,835,000 1,918,000 3,161,000 1,918,000 3,337,000 (640,000) 20,978,000 16,991,000 (29,000) 8,573,000 (471,000) 17,007,000 14,684,000 (26,000) 6,905,000 1,918,000 3,070,000 (715,000) 15,543,000 13,118,000 12,000 6,710,000 Additional Information Net cash flows from operating activities 4,664,000 4,164,000 3,413,000 4,272,000 Land Buildings & land improvements Equipment Leasehold improvements Construction-in-progress Leased property under capital leases & financing obligations Total property, plant & equipment Accumulated depreciation & amortization Property, plant & equipment, net 3,299,000 12,553,000 15,031,000 10,832,000 3,166,000 966,000 45,847,000 23,976,000 21,871,000 3,254,000 12,245,000 14,277,000 10,306,000 2,716,000 1,066,000 43,864,000 22,229,000 21,635,000 3,201,000 12,072,000 13,635,000 9,773,000 2,050,000 1,000,000 41,731,000 20,660,000 21,071,000 3,197,000 11,643,000 13,495,000 9,342,000 1,979,000 932,000 40,588,000 19,572,000 21,016,000
As Reported Annual Income Statement Report Date Scale 2019 2018 2017 Thousands Thousands Thousands Sales 122,286,000 95,294,000 26,992,000 21,208,000 884,000 2,649,000 2,251,000 603,000 121,162,000 94,894,000 26,268,000 20,305,000 884,000 2,465,000 2,614,000 620,000 26,000 228,000 1,782,000 3,978,000 900,000 3,078,000 32,000 3,110,000 122,662,000 95,662,000 27,000,000 21,568,000 Cost of sales Gross Profit Operating, general & administrative Rent Depreciation & amortization Operating profit (loss) Interest expense 911,000 2,436,000 2,085,000 601,000 Non-service component of company-sponsored pension plan costs Mark to market gain (loss) on Ocado International Holdings Limited & Ocado Group plc securities 157,000 176,000 1,981,000 469,000 1,512,000 147,000 1,659,000 ㅇ Gain on sale of businesses Net earnings before income tax expense (benefit) Income tax expense (benefit) Net earnings after income tax expense (benefit) Net earnings (loss) attributable to noncontrolling interests Net earnings (loss) attributable to The Kroger Co. 1,484,000 (405,000) 1,889,000 18,000 1,907,000 Additional Information Weighted average shares outstanding - basic Weighted average shares outstanding - diluted Year end shares outstanding 799,000 805,000 788,000 810,000 818,000 798,000 895,000 904,000 870,000
Transcribed Image Text:As Reported Annual Income Statement Report Date Scale 2019 2018 2017 Thousands Thousands Thousands Sales 122,286,000 95,294,000 26,992,000 21,208,000 884,000 2,649,000 2,251,000 603,000 121,162,000 94,894,000 26,268,000 20,305,000 884,000 2,465,000 2,614,000 620,000 26,000 228,000 1,782,000 3,978,000 900,000 3,078,000 32,000 3,110,000 122,662,000 95,662,000 27,000,000 21,568,000 Cost of sales Gross Profit Operating, general & administrative Rent Depreciation & amortization Operating profit (loss) Interest expense 911,000 2,436,000 2,085,000 601,000 Non-service component of company-sponsored pension plan costs Mark to market gain (loss) on Ocado International Holdings Limited & Ocado Group plc securities 157,000 176,000 1,981,000 469,000 1,512,000 147,000 1,659,000 ㅇ Gain on sale of businesses Net earnings before income tax expense (benefit) Income tax expense (benefit) Net earnings after income tax expense (benefit) Net earnings (loss) attributable to noncontrolling interests Net earnings (loss) attributable to The Kroger Co. 1,484,000 (405,000) 1,889,000 18,000 1,907,000 Additional Information Weighted average shares outstanding - basic Weighted average shares outstanding - diluted Year end shares outstanding 799,000 805,000 788,000 810,000 818,000 798,000 895,000 904,000 870,000
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