Exercise in Calculating Activity Ratios United Instruments, Inc. Selected Financial Statement Statistics as of Dec. 31, 2017 (amount millions): $ 544 337 Accounts receivable Inventory PP&E, net Total assets 1,526 2,707 Accounts payable 272 Sales 2,690 Calculate the following ratios and comment: Accounts receivable turnover and Days receivables: Inventory turnover and Days inventory:

Exercise in Calculating Activity Ratios United Instruments, Inc. Selected Financial Statement Statistics as of Dec. 31, 2017 (amount millions): $ 544 337 Accounts receivable Inventory PP&E, net Total assets 1,526 2,707 Accounts payable 272 Sales 2,690 Calculate the following ratios and comment: Accounts receivable turnover and Days receivables: Inventory turnover and Days inventory:

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 1FSA: Financial statement analysis The financial statements for Nike, Inc., are presented in Appendix D at...

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Real-world annual report The financial statements for Nike, Inc. (NKE), are presented in Appendix E at the end of the text. The following additional information is available (in thousands): Instructions 1. Determine the following measures for the fiscal years ended May 31, 2017, and May 31, 2016. Round ratios and percentages to one decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days sales in receivables f. Inventory turnover g. Number of days sales in inventory' h. Ratio of liabilities to stockholders equity i. Asset turnover j. Return on total assets, assuming interest expense is 82 million for the year ending May 31. 2017, and 33 million for the year ending May 31, 2016. k. k. Return on common stockholders equity l. Price-eamings ratio, assuming that the market price was 52.81 per share on May 31, 2017, and 54.35 per share on May 31, 2016. m. m. Percentage relationship of net income to sales 2. What conclusions can be drawn from these analyses?
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