Cullumber Appliances Corporation has reported its financial results for the year ended December 31, 2017. Cullumber Appliances Corporation Income Statement for the Fiscal Year Ended December 31, 2017 Net sales $ 5,899,512,000 Cost of goods sold 3,224,958,940 Gross profit $ 2,674,553,060 Selling, general, and administrative expenses 1,101,893,423 Depreciation 334,776,116 Operating income $ 1,237,883,521 Interest expense 32,014,500 EBT $ 1,205,869,021 Income taxes 320,866,566 Net earnings $ 885,002,455 Cullumber Appliances Corporation Balance Sheet as of December 31, 2017 Assets: Liabilities Equity: Cash and cash equivalents $ 642,840,000 Short-term borrowings $ 98,332,398 Accounts receivable 1,161,885,300 Trade accounts payable 421,708,488 Inventory 1,178,570,300 Other current liabilities 814,072,037 Other current assets 366,013,300 Total current assets $ 3,349,308,900 Total current liabilities $ 1,334,112,923 Net fixed assets 875,086,233 Long-term debt 1,302,143,673 Goodwill 123,956,553 Common stock 456,815,514 Other assets 817,404,946 Retained earnings 2,072,684,522 Total assets $ 5,165,756,632 Total liabilities and equity $ 5,165,756,632 Using the information from the financial statements, complete a comprehensive ratio analysis for Cullumber Appliances Corporation. Current ratio 2.51, Quick ratio 1.62 B. Calculate these efficiency ratios: inventory turnover, accounts receivable turnover, DSO. (Round intermediate calculations and final answers to 2 decimal places , e.g. 12.25. Use 365 days for calculation.) Efficiency Ratios Inventory turnover ratio times Accounts receivable turnover times DSO days
Cullumber Appliances Corporation has reported its financial results for the year ended December 31, 2017.
Cullumber Appliances Corporation
Income Statement for the Fiscal
Year Ended December 31, 2017
Net sales $ 5,899,512,000
Cost of goods sold 3,224,958,940
Gross profit $ 2,674,553,060
Selling, general, and administrative expenses 1,101,893,423
Operating income $ 1,237,883,521
Interest expense 32,014,500
EBT $ 1,205,869,021
Income taxes 320,866,566
Net earnings $ 885,002,455
Cullumber Appliances Corporation
Balance Sheet as of December 31, 2017
Assets: Liabilities Equity:
Cash and cash equivalents $ 642,840,000 Short-term borrowings $ 98,332,398
Inventory 1,178,570,300 Other current liabilities 814,072,037
Other current assets 366,013,300
Total current assets $ 3,349,308,900 Total current liabilities $ 1,334,112,923
Net fixed assets 875,086,233 Long-term debt 1,302,143,673
Other assets 817,404,946
Total assets $ 5,165,756,632 Total liabilities and equity $ 5,165,756,632
Using the information from the financial statements, complete a comprehensive ratio analysis for Cullumber Appliances Corporation.
B. Calculate these efficiency ratios: inventory turnover, accounts receivable turnover, DSO. (Round intermediate calculations and final answers to 2 decimal places , e.g. 12.25. Use 365 days for calculation.)
| Efficiency Ratios | |||
| Inventory turnover ratio | times | ||
| Accounts receivable turnover | times | ||
| DSO | days |
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