Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN: 9781285595047
Author: Weil
Publisher: Cengage
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Here is some financial statement data for Nestlé (in millions of Swiss francs):
After reviewing the information, calculate the following ratios for Nestlé for 2021:1) Inventory turnover2) Profit margin3) Return on assets4) Free cash flowRound all answers to two decimal places. Do not include dollar signs because Nestlé's accounting information is in Swiss francs. Show the calculations for each answer.
Compare Income Statements and Balance Sheets of Competitorsa. Following are selected income statement data from two European grocery chain companies: Tesco PLC (UK) and Ahold (the Netherlands). Prepare a common‑size income statement. To do this, express each income statement amount as a percent of sales.Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%).
Income Statements
Tesco
Carrefour Group
For Fiscal Year Ended
February 24, 2019
December 31, 2018
(£ millions)
(€ millions)
Sales
£57,520
Answer
€70,125
Answer
Cost of goods sold
53,790
Answer
54,765
Answer
Gross profit
3,730
Answer
15,360
Answer
Total expenses
2,542
Answer
15,670
Answer
Net income
£1,188
Answer
€(310)
Answer
b. Following are selected balance sheet data from two European grocery chain companies: Tesco PLC (UK) and Ahold (the Netherlands). Prepare a common‑size balance sheet. To do this, express each…
The following information has been collected from two London-based companies. The accounts are drawn up to 31st December 2021.
Profit and Loss Account for the year ended 31st December 2021 (Figures are in £000)
Particulars
XYZ
ABC
Sales
3,690
4,586
Less: Cost of Goods Sold (Including purchases)
(2,146)
(2,690)
Gross Profit
1,544
1,896
Less: Selling & Distribution Expenses
Less: Depreciation
(1,103)
(1,253)
Earnings before Interest & Tax or Operating Profit
441
643
Less: Interest
(225)
(192)
Earnings before Tax
216
451
Less: Taxes
(86)
(180)
Earnings after Tax or Net Profit
130
271
Balance Sheet as at31st December 2021 (Figures are in £000)
Assets
XYZ
ABC
Fixed Assets
4,542
4,790
Current Assets
Account Receivables
274
313
Inventory
654
702
Cash
140
163
Total Current Assets
1,068
1,178
Total Assets
5,610
5,968…
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- The following information has been collected from two London-based companies. The accounts are drawn up to 31st December 2021. Profit and Loss Account for the year ended 31st December 2021 (Figures are in £000) Particulars XYZ ABC Sales 3,690 4,586 Less: Cost of Goods Sold (Including purchases) (2,146) (2,690) Gross Profit 1,544 1,896 Less: Selling & Distribution Expenses Less: Depreciation (1,103) (1,253) Earnings before Interest & Tax or Operating Profit 441 643 Less: Interest (225) (192) Earnings before Tax 216 451 Less: Taxes (86) (180) Earnings after Tax or Net Profit 130 271 Balance Sheet as at31st December 2021 (Figures are in £000) Assets XYZ ABC Fixed Assets 4,542 4,790 Current Assets Account Receivables 274 313 Inventory 654 702 Cash 140 163 Total Current Assets 1,068 1,178 Total Assets 5,610 5,968…arrow_forwardThe following information has been collected from two London-based companies. The accounts are drawn up to 31st December 2021. Profit and Loss Account for the year ended 31st December 2021 (Figures are in £000) Particulars XYZ ABC Sales 3,690 4,586 Less: Cost of Goods Sold (Including purchases) (2,146) (2,690) Gross Profit 1,544 1,896 Less: Selling & Distribution Expenses Less: Depreciation (1,103) (1,253) Earnings before Interest & Tax or Operating Profit 441 643 Less: Interest (225) (192) Earnings before Tax 216 451 Less: Taxes (86) (180) Earnings after Tax or Net Profit 130 271 Balance Sheet as at31st December 2021 (Figures are in £000) Assets XYZ ABC Fixed Assets 4,542 4,790 Current Assets Account Receivables 274 313 Inventory 654 702 Cash 140 163 Total Current Assets 1,068 1,178 Total Assets 5,610 5,968…arrow_forwardThe following information has been collected from two London-based companies. The accounts are drawn up to 31st December 2021. Profit and Loss Account for the year ended 31st December 2021 (Figures are in £000) Particulars XYZ ABC Sales 3,690 4,586 Less: Cost of Goods Sold (Including purchases) (2,146) (2,690) Gross Profit 1,544 1,896 Less: Selling & Distribution Expenses Less: Depreciation (1,103) (1,253) Earnings before Interest & Tax or Operating Profit 441 643 Less: Interest (225) (192) Earnings before Tax 216 451 Less: Taxes (86) (180) Earnings after Tax or Net Profit 130 271 Balance Sheet as at31st December 2021 (Figures are in £000) Assets XYZ ABC Fixed Assets 4,542 4,790 Current Assets Account Receivables 274 313 Inventory 654 702 Cash 140 163 Total Current Assets 1,068 1,178 Total Assets 5,610 5,968…arrow_forward
- The following information has been collected from two London-based companies. The accounts are drawn up to 31st December 2021. Profit and Loss Account for the year ended 31st December 2021 (Figures are in £000) Particulars XYZ ABC Sales 3,690 4,586 Less: Cost of Goods Sold (Including purchases) (2,146) (2,690) Gross Profit 1,544 1,896 Less: Selling & Distribution Expenses Less: Depreciation (1,103) (1,253) Earnings before Interest & Tax or Operating Profit 441 643 Less: Interest (225) (192) Earnings before Tax 216 451 Less: Taxes (86) (180) Earnings after Tax or Net Profit 130 271 Balance Sheet as at31st December 2021 (Figures are in £000) Assets XYZ ABC Fixed Assets 4,542 4,790 Current Assets Account Receivables 274 313 Inventory 654 702 Cash 140 163 Total Current Assets 1,068 1,178 Total Assets 5,610 5,968…arrow_forwardAnalyze and compare Kroger and Tiffany The Kroger Company (KR), a national supermarket chain, reported the following data (in millions) in its financial statements for a recent year: a.Compute the asset turnover ratio. Round to two decimal places. b.Tiffany Co. (TIF) is a large North American retailer of jewelry. Tiffanys asset turnover ratio is 0.78. Why would Tiffanys asset turnover ratio be lower than that of Kroger?arrow_forwardThe following data (in millions) are taken from recent financial statements of Nike Inc.: a. Determine the amount of change (in millions) and percent of change in net income for Year 2. Round to one decimal place. b. Determine the percentage relationship between net income and net sales (net income divided by net sales) for Year 2 and Year 1. Round to one decimal place. c. What conclusions can you draw from your analysis?arrow_forward
- Two companies have the financial information shown below. Requirements: Calculate the Gross Margin Percentage for each company. Calculate the Net Income Percentage for each company. From these ratios, what type of business do you think Yuri and Zuri might be? Yuri Zuri Net Sales 450,000 785,000 Cost of Goods Sold 261,000 698,000 Operating Expenses 67,500 45,200arrow_forwardPLEASE ANSWERED WITH IN THE FORMAT BY PROVIDING FORMULA IN DETAILS Income statements for Thornton Company for Year 3 and Year 4 follow. THORNTON COMPANY Income Statements Year 4 Year 3 Sales $200,900 $180,900 Cost of goods sold 142,300 120,300 Selling expenses 21,600 19,600 Administrative expenses 12,500 14,500 Interest expense 3,200 5,200 Total expenses $179,600 $159,600 Income before taxes 21,300 21,300 Income taxes expense 6,300 3,800 Net income $15,000 $17,500 Required Perform a horizontal analysis, showing the percentage change in each income statement component between Year 3 and Year 4. Perform a vertical analysis, showing each income statement component as a percentage of sales for each year. PLEASE PROVIDE ANSWER IN TEXTarrow_forwardPresented below are the components in Jane Company's income statement. Determine the missing amounts. Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income (a) Php 750,000 ? Php 435,000 ? Php 108,000 (b) Php 1,080,000 Php 650,000 ? ? Php 295,000 (c) ? Php 719,000 Php 1,096,000 Php 395,000 ?arrow_forward
- Analyze and compare J. C. Penney and Macys J. C. Penney Company, Inc. (JCP) and Macys, Inc. (M) are large department store chains in the United States. Information from recent annual reports for both companies is as follows (in millions): a. Determine the days cash on hand for each company. Round to one decimal place. b. Which company has the better liquidity position?arrow_forwardPresented here are the components in Crane Company’s income statement.Determine the missing amounts. Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income Year 1 $ 72,340 $Enter a dollar amount for year 1 (b) $ 32,300 $Enter a dollar amount for year 1 (d) $13,050 Year 2 $111,100 $73,700 $Enter a dollar amount for year 2 (c) $Enter a dollar amount for year 2 (e) $30,910 Year 3 $Enter a dollar amount for year 3 (a) $71,900 $116,050 $47,390 $Enter a total net income for year 3 (f)arrow_forwardBB Company is merchandising business that sells goods in different parts of the country. The following summarized the transaction of BB during the year: Sales P540,000 Rent income 30,000 Interest income 10,000 Gain on sale of machinery 12,000 Cost of sales 200,000 Rent expense 100,000 Insurance expense 30,000 Depreciation expense 40,000 Loss on sale of equipment 15,000 Foreign exchange translation loss 20,000 Revaluation surplus 40,000 How much is the total income?arrow_forward
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