Chapter 5, Problem 5.9AMCP

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?

The following select account data is taken from the records of Carnival Express for 2019. A. Use the data provided to compute net sales for 2019. B. Prepare a simple income statement for the year ended December 31, 2019. C. Compute the gross margin for 2019. D. Prepare a multi-step income statement for the year ended December 31, 2019.

Analyzing Starbuckss Income Statement and Cash Flow Statement Disclosures Review Starbuckss financial statements and notes in Appendix A. Required: (Note: You do not need to make any calculations.) 1. Does the company use a multiple-step or a single-step format on its income statement? Explain. 2. What was the net earnings attributable to Starbucks for 2017? What was the basic earnings per common share for 2017? 3. What was the amount of the income taxes related to income before income taxes for 2017? 4. What was the amount of general and administrative expenses in 2017? 5. What amount of depreciation and amortization expense is reported separately on the income statement for 2017? How much depreciation and amortization expense is added back to net income on the 2017 statement of cash flows? What item on the income statement includes the majority of the difference? 6. What amount of dividends on common stock was paid and declared in 2017? If these amounts differ, where is the difference on the balance sheet? 7. Are Starbuckss revenues seasonal? If so, in which two quarters did Starbucks generate the most revenues in 2016 and 2017? 8. Did Starbucks use the direct or indirect method to determine the net cash provided by operating activities in 2017? What was the amount? 9. What was the net cash used in investing activities in 2017? 10. What cash was used for financing activities in 2017?

Lansing Company’s 2018 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2017 and 2018, follow.  LANSING COMPANYIncome StatementFor Year Ended December 31, 2018 Sales revenue $ 100,200 Expenses     Cost of goods sold   43,000 Depreciation expense   12,500 Salaries expense   19,000 Rent expense   9,100 Insurance expense   3,900 Interest expense   3,700 Utilities expense   2,900 Net income $ 6,100      LANSING COMPANYSelected Balance Sheet Accounts At December 31 2018   2017   Accounts receivable $ 5,700   $ 6,000   Inventory   2,080     1,590   Accounts payable   4,500     4,800   Salaries payable   900     710   Utilities payable   240     170   Prepaid insurance   270     300   Prepaid rent   240     190       Required:Prepare the cash flows from operating activities section only of the company’s 2018 statement of cash flows using the direct method. (Amounts to be…

Find the cost of products sold for the third quarter of 2017 in the Notes to the Consolidated Financial Statements. (Enter your answer in millions.)

The following information is taken Aiello Corporation's fiscal 2016 annual report.      Selected Balance Sheet Data 2016 2015 Inventories........................ $221,418 $226,893 Accounts Receivable........... $121,333 $122,087   Assume that Aiello Corporation had $1,003,881 sales on credit during fiscal year 2016. What amount did the company collect from credit customers during the year?    a. $1,003,881 b. $1,004,635 c. $1,003,127 d. $1,247,301

Required information   [The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow.  At December 31 2017 2016 2015 Assets                   Cash $ 31,800   $ 35,625   $ 37,800   Accounts receivable, net   89,500     62,500     50,200   Merchandise inventory   112,500     82,500     54,000   Prepaid expenses   10,700     9,375     5,000   Plant assets, net   278,500     255,000     230,500   Total assets $ 523,000   $ 445,000   $ 377,500   Liabilities and Equity                   Accounts payable $ 129,900   $ 75,250   $ 51,250   Long-term notes payable secured bymortgages on plant assets   98,500     101,500     83,500   Common stock, $10 par value   163,500     163,500     163,500   Retained earnings   131,100     104,750     79,250   Total liabilities and equity $ 523,000   $ 445,000   $ 377,500      The company’s income statements for the years ended December 31, 2017 and 2016, follow. Assume…

Required information   [The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow.  At December 31 2017 2016 2015 Assets                   Cash $ 31,800   $ 35,625   $ 37,800   Accounts receivable, net   89,500     62,500     50,200   Merchandise inventory   112,500     82,500     54,000   Prepaid expenses   10,700     9,375     5,000   Plant assets, net   278,500     255,000     230,500   Total assets $ 523,000   $ 445,000   $ 377,500   Liabilities and Equity                   Accounts payable $ 129,900   $ 75,250   $ 51,250   Long-term notes payable secured bymortgages on plant assets   98,500     101,500     83,500   Common stock, $10 par value   163,500     163,500     163,500   Retained earnings   131,100     104,750     79,250   Total liabilities and equity $ 523,000   $ 445,000   $ 377,500      The company’s income statements for the years ended December 31, 2017 and 2016, follow. Assume…

Required information   [The following information applies to the questions displayed below.] Simon Company’s year-end balance sheets follow.  At December 31 2017 2016 2015 Assets                   Cash $ 31,800   $ 35,625   $ 37,800   Accounts receivable, net   89,500     62,500     50,200   Merchandise inventory   112,500     82,500     54,000   Prepaid expenses   10,700     9,375     5,000   Plant assets, net   278,500     255,000     230,500   Total assets $ 523,000   $ 445,000   $ 377,500   Liabilities and Equity                   Accounts payable $ 129,900   $ 75,250   $ 51,250   Long-term notes payable secured bymortgages on plant assets   98,500     101,500     83,500   Common stock, $10 par value   163,500     163,500     163,500   Retained earnings   131,100     104,750     79,250   Total liabilities and equity $ 523,000   $ 445,000   $ 377,500      The company’s income statements for the years ended December 31, 2017 and 2016, follow. Assume…