The Cena and Lesnar, a retail clothier, has had average sales of $400,000 for the last five years,| 2019-2015. The firm's total assets at the end of 2017 were $400,000. An internal staff cost analyst has prepared the following financial data from the annual reports. You have been hired as a consultant to help analyze the financial position. 2017 2015 2.00 1.47 2019 2018 2.43 2016 Current Ratio 2.80 2.36 2.10 Acid Test Ratio 2.03 1.93 1.82 1.61 Days' Sales in Receivables Merchandise Inventory Turnover Debt Ratio Times Interest Earned 61 58 54 42 35 4.20 4.10 4.10 3.90 3.70 0.48 0.50 0.49 0.47 0.47 4.60 4.80 5.90 5.70 6.00 Sales as a Percent of 1996 Sales Net Income as a Percent of 1996 1.46 1.23 1.12 1.06 1.00 Income 1.31 1.20 1.10 1.06 1.00 Gross Profit Margin Operating Expenses to Net Sales Net Profit Margin Return on Total Assets 38.5% 38.8% 38.9% 40.0% 39.7% 11.3% 8.6% 9.6% 11.5% 8.9% 11.4% 11.4% 9.4% 11.7% 7.6% 9.3% 9.4% 9.6% 10.0% 10.7% Required: Have Cena and Lesnar utilized its total assets effectively? Discuss the ability of Cena and Lesnar to generate sales based on total assets. (Use DuPont analysis.) b. а. Specifically cite and briefly describe two additional types of information that would aid in your analysis.
The Cena and Lesnar, a retail clothier, has had average sales of $400,000 for the last five years,| 2019-2015. The firm's total assets at the end of 2017 were $400,000. An internal staff cost analyst has prepared the following financial data from the annual reports. You have been hired as a consultant to help analyze the financial position. 2017 2015 2.00 1.47 2019 2018 2.43 2016 Current Ratio 2.80 2.36 2.10 Acid Test Ratio 2.03 1.93 1.82 1.61 Days' Sales in Receivables Merchandise Inventory Turnover Debt Ratio Times Interest Earned 61 58 54 42 35 4.20 4.10 4.10 3.90 3.70 0.48 0.50 0.49 0.47 0.47 4.60 4.80 5.90 5.70 6.00 Sales as a Percent of 1996 Sales Net Income as a Percent of 1996 1.46 1.23 1.12 1.06 1.00 Income 1.31 1.20 1.10 1.06 1.00 Gross Profit Margin Operating Expenses to Net Sales Net Profit Margin Return on Total Assets 38.5% 38.8% 38.9% 40.0% 39.7% 11.3% 8.6% 9.6% 11.5% 8.9% 11.4% 11.4% 9.4% 11.7% 7.6% 9.3% 9.4% 9.6% 10.0% 10.7% Required: Have Cena and Lesnar utilized its total assets effectively? Discuss the ability of Cena and Lesnar to generate sales based on total assets. (Use DuPont analysis.) b. а. Specifically cite and briefly describe two additional types of information that would aid in your analysis.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Transcribed Image Text:The Cena and Lesnar, a retail clothier, has had average sales of $400,000 for the last five years,|
2019-2015. The firm's total assets at the end of 2017 were $400,000.
An internal staff cost analyst has prepared the following financial data from the annual reports.
You have been hired as a consultant to help analyze the financial position.
2019
2018
2017
2016
2015
Current Ratio
2.80
2.43
2.36
2.10
2.00
Acid Test Ratio
2.03
1.93
1.82
1.61
1.47
Days' Sales in Receivables
Merchandise Inventory Turnover
Debt Ratio
61
58
54
42
35
4.20
4.10
4.10
3.90
3.70
0.48
0.50
0.49
0.47
0.47
Times Interest Earned
4.60
4.80
5.90
5.70
6.00
Sales as a Percent of 1996 Sales
1.46
1.23
1.12
1.06
1.00
Net Income as a Percent of 1996
Income
1.31
1.20
1.10
1.06
1.00
Gross Profit Margin
Operating Expenses to Net Sales
Net Profit Margin
38.5%
38.8%
38.9%
40.0%
39.7%
11.4%
11.3%
11.5%
11.4%
11.7%
7.6%
8.6%
8.9%
9.4%
9.3%
Return on Total Assets
9.4%
9.6%
9.6%
10.0%
10.7%
Required:
Have Cena and Lesnar utilized its total assets effectively? Discuss the ability of
Cena and Lesnar to generate sales based on total assets. (Use DuPont analysis.)
а.
b.
Specifically cite and briefly describe two additional types of information that would
aid in your analysis.
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