INTERMEDIATE ACCOUNTING(LL) W/CENGAGENO
2nd Edition
ISBN: 9781305617001
Author: WAHLEN
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Question
Chapter 4, Problem 15P
To determine
Calculate the common-size
Expert Solution & Answer
![Check Mark](/static/check-mark.png)
Want to see the full answer?
Check out a sample textbook solution![Blurred answer](/static/blurred-answer.jpg)
Students have asked these similar questions
Ratios Analysis: McCormick
McCormick & Company, Inc. is one of the world's leading producers of spices, herbs, seasonings, condiments, and other flavorings for foods. Its products are sold to consumers, with some of the leading brands of spices and seasonings, as well as to industrial producers of foods. McCormick's consolidated balance sheets for 2012 and 2013 follow.
McCormick: Consolidated Balance Sheets
Dollar Amounts in Millions
2012
2013
Assets
Current Assets
Cash and Equivalents
$ 79.0
$ 63.0
Receivables
465.9
495.5
Inventories
615.0
676.9
Prepaid Expenses and Other Assets
125.5
134.8
Total Current Assets
$ 1,285.4
$ 1,370.2
Property and Equipment, Net
547.3
576.6
Goodwill
1,695.3
1,798.5
Intangible Assets, net
323.5
333.4
Investments and Other Assets
313.9
371.0
Total Assets
$ 4,165.4
$ 4,449.7
Liabilities and Shareholders' Equity
Current Liabilities
Short-Term Borrowings
$ 140.3
$ 211.6
Current Portion of…
Household Brands Inc. (HBI) manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product lines. In 2011, HBI acquired cosmetics and consumer electronics companies. HBI is now, in 2020, comprised of three divisions: cosmetics, household, and consumer electronics. The following information (in thousands of dollars) presents operating revenues, operating income, and invested assets of the company over the last three years:
Revenue
Operating Income
Assets
Cosmetics
2018
$
24,500
$
2,300
$
10,000
2019
22,500
1,900
10,000
2020
19,600
1,800
9,500
Household
2018
17,400
1,300
7,500
2019
15,300
1,100
8,000
2020
12,500
900
6,500
Electronics
2018
13,500
1,500
4,500
2019
9,500
1,100
4,500…
Household Brands Incorporated (HBI) manufactures household goods in the United States. The company made two acquisitions in previous years to diversify their product lines. In 2011, HBI acquired cosmetics and consumer electronics companies. HBI is now, in 2022, comprised of three divisions: cosmetics, household, and consumer electronics. The following information (in thousands of dollars) presents operating revenues, operating income, and invested assets of the company over the last three years:
Revenue
Operating Income
Assets
Cosmetics
2020
$ 24,500
$ 2,300
$ 10,000
2021
22,500
1,900
10,000
2022
19,600
1,800
9,500
Household
2020
17,400
1,300
7,500
2021
15,300
1,100
8,000
2022
12,500
900
6,500
Electronics
2020
13,500
1,500
4,500
2021
9,500
1,100
4,500
2022
8,700
1,050
4,300
Household Brands Total
2020
55,400
5,100
22,000
2021
47,300
4,100
22,500
2022
40,800
3,750
20,300
The current compensation package is an annual…
Chapter 4 Solutions
INTERMEDIATE ACCOUNTING(LL) W/CENGAGENO
Ch. 4 - What is the accounting equation? The balance sheet...Ch. 4 - Prob. 2GICh. 4 - How does the balance sheet at the end of an...Ch. 4 - What does recognition mean in accounting?Ch. 4 - Prob. 5GICh. 4 - Prob. 6GICh. 4 - What is equity? How is equity determined?Ch. 4 - What is a mixed attribute measurement model? Why...Ch. 4 - Identify at least five alternatives for measuring...Ch. 4 - Identify at least three alternatives for measuring...
Ch. 4 - Prob. 11GICh. 4 - Prob. 12GICh. 4 - Prob. 13GICh. 4 - Prob. 14GICh. 4 - Prob. 15GICh. 4 - Prob. 16GICh. 4 - Define (a) common stock, (b) additional paid-in...Ch. 4 - Prob. 18GICh. 4 - Prob. 19GICh. 4 - What are investments by owners? Distributions to...Ch. 4 - What accounting policies are disclosed in the...Ch. 4 - Give several examples of financial instruments and...Ch. 4 - Prob. 23GICh. 4 - Prob. 24GICh. 4 - Prob. 25GICh. 4 - Prob. 26GICh. 4 - Prob. 27GICh. 4 - Prob. 28GICh. 4 - Prob. 29GICh. 4 - Prob. 30GICh. 4 - Prob. 31GICh. 4 - Prob. 32GICh. 4 - Prob. 33GICh. 4 - Prob. 34GICh. 4 - A donated fixed asset (from a governmental unit)...Ch. 4 - Prob. 2MCCh. 4 - Prob. 3MCCh. 4 - Prob. 4MCCh. 4 - Prob. 5MCCh. 4 - Rent revenue collected 1 month in advance should...Ch. 4 - Prob. 7MCCh. 4 - Prob. 8MCCh. 4 - Which of the following should be disclosed in the...Ch. 4 - Prob. 10MCCh. 4 - Prob. 1RECh. 4 - Dorothy Corporation had the following accounts in...Ch. 4 - Dorothy Corporation had the following accounts in...Ch. 4 - Based on the information in RE4-2 and RE4-3,...Ch. 4 - Prob. 5RECh. 4 - Oz Corporation has the following assets at...Ch. 4 - Prob. 7RECh. 4 - Prob. 8RECh. 4 - Scarecrow Inc. issues 50,000 shares of 2 par value...Ch. 4 - Tinman Corporation reports the following balances...Ch. 4 - Prob. 1ECh. 4 - Plant and Equipment Your analysis of Moen...Ch. 4 - Prob. 3ECh. 4 - Prob. 4ECh. 4 - Classifications on Balance Sheet The balance sheet...Ch. 4 - Balance Sheet Baggett Companys balance sheet...Ch. 4 - Prob. 7ECh. 4 - Prob. 8ECh. 4 - Prob. 9ECh. 4 - Prob. 10ECh. 4 - Prob. 11ECh. 4 - Prob. 12ECh. 4 - Prob. 1PCh. 4 - Prob. 2PCh. 4 - Prob. 3PCh. 4 - Prob. 4PCh. 4 - Prob. 5PCh. 4 - Prob. 6PCh. 4 - Prob. 7PCh. 4 - Prob. 8PCh. 4 - Prob. 9PCh. 4 - Prob. 10PCh. 4 - Balance Sheet The following is an alphabetical...Ch. 4 - Prob. 12PCh. 4 - Prob. 13PCh. 4 - Comprehensive: Balance Sheet, Schedules, and Notes...Ch. 4 - Prob. 15PCh. 4 - Prob. 16PCh. 4 - Prob. 17PCh. 4 - Prob. 18PCh. 4 - Prob. 1CCh. 4 - Prob. 2CCh. 4 - Prob. 3CCh. 4 - Valuation of Assets and Stock A friend has come to...Ch. 4 - Prob. 5CCh. 4 - Prob. 6CCh. 4 - Analyzing Starbuckss Accounting Policies A company...Ch. 4 - Prob. 8CCh. 4 - Prob. 9C
Knowledge Booster
Similar questions
- For fiscal year 2018, Walmart Inc. (WMT) had total revenues of $500.34 billion, net income of $9.86 billion, total assets of $204.52 billion, and total shareholders' equity of $77.87 billion. a. Calculate Walmart's ROE directly, and using the DuPont Identity. b. Comparing with the data for Costco, use the DuPont Identity to understand the difference between the two firms' ROES. Data table For fiscal year 2018, Costco Wholesale Corporation (COST) had a net profit margin of 2.08%, asset turnover of 3.55, and a book equity multiplier of 3.37. Costco's ROE (DuPont) is 24.88%.arrow_forwardRatios Analyses: McCormick McCormick & Company, Inc. is one of the world's leading producers of spices, herbs, seasonings, condiments, and other flavorings for foods. Its products are sold to consumers, with some of the leading brands of spices and seasonings, as well as to industrial producers of foods. McCormick's consolidated balance sheets for 20X2 and 20X3 follow. McCormick: Consolidated Balance Sheets Dollar Amounts in Millions 20X2 20X3 Assets Current Assets Cash and Equivalents $79.0 $63.0 Receivables 465.9 495.5 Inventories 615.0 676.9 Prepaid Expenses and Other Assets 125.5 134.8 Total Current Assets $1,285.4 $1,370.2 Property and Equipment, Net 547.3 576.6 Goodwill 1,695.3 1,798.5 Intangible Assets, net 323.5 333.4 Investments and Other Assets 313.9 371.0 Total Assets $4,165.4 $4,449.7 Liabilities and Shareholders' Equity Current Liabilities Short-Term Borrowings $140.3 $211.6 Current…arrow_forwardAGF Foods Company is a large, primarily domestic, consumer foods company involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troy's The Almanac of Business and Industrial Financial Ratios and Dun and Bradstreet's Industry Norms and Key Business Ratios. Following are the 2024 and 2023 comparative income statements and balance sheets for AGF. The market price of AGF's common stock is $47 at the end of 2024. (The financial data we use are from actual financial statements of a well-known corporation, but the company name used in our illustration is fictitious and the numbers and dates have been modified slightly to disguise the company's identity.) Profitability is the key to a company's long-run survival. Profitability measures focus on a company's ability to provide an adequate return relative to resources devoted to company operations. AGF FOODS COMPANY Years Ended December 31, 2024 and 2023 2024 Comparative Income…arrow_forward
- AGF Foods Company is a large, primarily domestic, consumer foods company Involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troy's The Almanac of Business and Industrial Financial Ratios and Dun and Bradstreet's Industry Norms and Key Business Ratios. Following are the 2024 and 2023 comparative Income statements and balance sheets for AGF. The market price of AGF's common stock is $47 at the end of 2024. (The financial data we use are from actual financial statements of a well-known corporation, but the company name used in our illustration is fictitious and the numbers and dates have been modified slightly to disguise the company's Identity:) Profitability is the key to a company's long-run survival. Profitability measures focus on a company's ability to provide an adequate return relative to resources devoted to company operations. ($ in millions) AGF FOODS COMPANY Years Ended December 31, 2024 and 2023 2024…arrow_forwardHershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey’s consolidated balance sheets for 2009 and 2010 follow:Hershey: Consolidated Balance Sheets(millions) 2009 2010AssetsCurrent AssetsCash and Equivalents $ 253.6 $ 884.6 Accounts Receivable, Trade 410.4 390.1 Inventories 519.7 533.6 Deferred Income Taxes 39.9 55.8 Prepaid Expenses and Other Assets 161.8 141.1 Total Current Assets 1,385.4 2,005.2 Property, Plant, and Equipment, net 1,404.8 1,437.7 Goodwill and Intangible Assets 571.6 524.1 Other Intangible Assets 125.5 123.1 Deferred Income Taxes and Other Assets 187.7 182.6 Total Assets $3,675.0 $ 4,272.7 Liabilities and Shareholders’ EquityCurrent LiabilitiesAccounts Payable $ 287.9 $ 410.7 Accrued Liabilities and Taxes 583.4 602.7 Short-Term Debt 24.1 24.1 Current Portion of Long-Term Debt 15.2 261.4 Total Current Liabilities 910.6…arrow_forwardHasbro, Incorporated, sells toys and games in over 120 countries, including popular brands such as Nerf and Play-Doh. The following are selected financial data for the company for the period 2012 to 2016. Profit margin (%) Retention ratio (%) Asset turnover (X) Financial leverage (X) Growth rate in sales (%) Source: Data from Hasbro 2012 to 2016 annual reports Year 2012 2013 2014 2015 2016 2012 Sustainable Growth Rate % % % % % 8.7 33.2 1.02 3.17 (5.2) 2013 7.7 46.2 0.97 2.97 (3.2) 2014 Calculate Hasbro's annual sustainable growth rate from 2012 through 2016. Note: Round your answers to 1 decimal place. 10.2 48.2 0.98 2.72 5.2 2015 11.2 57.0 0.98 3.27 4.7 2016 12.2 55.2 1.03 3.17 13.2arrow_forward
- Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this firm as a model firm for analyzing its own performance. The balance sheet and income statements for the two firms are as follows: Calculate the following ratios for both Carson and BGT: a) Current ratio: b) Times interest earned: c) Inventory turnover:arrow_forwardFind online the annual 10-K report for Costco Wholesale Corporation (COST) for fiscal year 2015 (filed in October 2015). a. Compute Costco's net profit margin, total asset turnover, and equity multiplier. b. Verify the DuPont Identity for Costco's ROE. c. If Costco's managers wanted to increase its ROE by 1 percentage point, how much higher would their asset turnover need to be? a. Compute Costco's net profit margin, total asset turnover, and equity multiplier. The net profit margin is %. (Round to two decimal places.) The total asset turnover is (Round to two decimal places.) The equity multiplier is (Round to two decimal places.) b. Verify the DuPont Identity forCostco's ROE. The ROE is %. (Round to two decimal places.) c. If Costco's managers wanted to increase its ROE by 1 percentage point, how much higher would their asset turnover need to be? The total assets turnover should be (Round to two decimal places.) The total asset turnover should be % (Round to two decimal places and…arrow_forwardSuppose you want to compare Palfinger AG to another heavy equipment manufacture, Caterpillar, Inc. To compare the companies, complete the table below and calculate common-sized numbers. To common-size balance sheet numbers, divide by total assets abd to common-size income statement numbers, divide by net sales. Comment on the trends over time and levels across companies.arrow_forward
- Question :) Staples, Inc. is one of the largest suppliers of office products in the United States. Suppose it had net income of $790 million and sales of $23,900 million in 2022. Its total assets were $14,500 million at the beginning of the year and $15,650 million at the end of the year. What is Staples, Inc.'s (a) asset turnover and (b) profit margin? (Round answers to 2 decimal places, e.g. 1.25.) (a) Asset turnorer enter-asset-turnever in timesTounded to 2 decimal places (b) Profit margin Enter profit margin in percentages rounded to 1 decimal place % timesarrow_forwardNobility Homes, Incorporated, is a small maker of manufactured homes sold throughout the state of Florida. The following are selected financial data for the company for the period 2012-2016. Year 2012 2013 2014 2015 2016 2012 % 2013 0.4 100.0 0.44 1.09 17.4 Profit margin (8) Retention ratio (8) Asset turnover (X) Financial leverage (X) Growth rate in sales (t) Source: Data from Nobility Homes 2012 to 2016 annual reports a. Calculate Nobility Homes' annual sustainable growth rate for the years 2012 through 2016. Note: Round your answers to 1 decimal place. Sustainable Growth Rate % % % 6.7 % 2014 5.0 100.0 0.49 1.13 16.9 2015 5.4 100.0 0.54 1.16 14.4 9.4 100.0 0.59 2016 1.21 30.9 17.4 100.0 0.64 1.29 22.4arrow_forwardHershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey’s consolidated balance sheets for 2009 and 2010 follow: Hershey: Consolidated Balance Sheets (millions) 2009 2010 Assets Current Assets Cash and Equivalents $ 253.6 $ 884.6 Accounts Receivable, Trade 410.4 390.1 Inventories 519.7 533.6 Deferred Income Taxes 39.9 55.8 Prepaid Expenses and Other Assets 161.8 141.1 Total Current Assets 1,385.4 2,005.2 Property, Plant, and Equipment, net 1,404.8 1,437.7 Goodwill and Intangible Assets 571.6 524.1 Other Intangible Assets 125.5 123.1 Deferred Income Taxes and Other Assets 187.7 182.6 Total Assets $ 3,675.0 $ 4,272.7…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337272124/9781337272124_smallCoverImage.gif)
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
![Text book image](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub