Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 11, Problem 11.14P
Problem 11.14
Ratio analysis-comprehensive problem, 2014 data This problem is based on the 2014 annual report of Campbell Soup Company in the appendix.
Required:
- Compute the following profitability measures for the year ended August 3, 2014:
Return on investment , based on net earnings (perform a DuPont analysis).- Return on equity7, based on net earnings and total equity.
- Price/earnings ratio. Use $41.96 as the year-end market price.
- Dividend yield.
- Dividend payout ratio.
- Compute the following liquidity measures at August 3, 2014:
Working capital .Current ratio .- Acid-test ratio.
- Compute the following activity measures for the year ended August 3, 2014:
- Number of days" sales in accounts receivable, based on a 365-day year.
- Number of days’ sales in inventory, based on a 365-day year.
- Accounts receivable turnover.
- Inventory turnover.
- Turnover of net property, plant, and equipment.
- Compute the following financial leverage measures at August 3, 2014:
- Debt ratio.
- Debt/equity ratio.
- Compute the following physical measures of Campbell’s profitability at August 3, 2014:
- Net sales per employee.
- Operating income per employee. (Note: In a page not reproduced in the appendix, Campbell’s 2014 annual report disclosed that on August 3, 2014, the company had approximately 19,400 employees.)
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Chapter 11 Solutions
Accounting: What the Numbers Mean
Ch. 11 - Prob. 11.1MECh. 11 - Calculate activity measures The following...Ch. 11 - Prob. 11.3MECh. 11 - Prob. 11.4MECh. 11 - Prob. 11.5ECh. 11 - Exercise 11.6 Obtain an annual report and discuss...Ch. 11 - Exercise 11.7 Effect of transactions on various...Ch. 11 - Prob. 11.8ECh. 11 - Prob. 11.9PCh. 11 - Problem 11.10 LQ 9 Prepare a common size balance...
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