QUESTION 25 O'Reilly Auto Parts (ORIY) is an auto parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States serving both the professional service providers and do it yourself customers. The company's revenue in 2015 was $9,540 million and the cost of goods and services for ORLY was $4,500 million. In reviewing the balance sheet for ORIX, not including accounts receivables the average inventory in 2018 was $3,190 million. How many days did products for sale atay in ORLY's Inventory?
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- The Superior Print Limited is a printing firm and do provide other stationery services to its clients across the country. As a Financial Analyst you are expected to assess the performance of the company’s income and financial position below. SUPERIOR PRINT LIMITED Comprehensive Income Statement for the Years Ended December 31, 2015 and 2014 2015 2014 Particulars GH¢ GH¢ Net sales 260,000 240,000 Cost of goods sold (180,000) (157,500) Gross profit 80,000 82,500 Operating expenses…The Superior Print Limited is a printing firm and do provide other stationery services to its clients across the country. As a Financial Analyst you are expected to assess the performance of the company’s income and financial position below. SUPERIOR PRINT LIMITED Comprehensive Income Statement for the Years Ended December 31, 2015 and 2014 2015 2014 Particulars GH¢ GH¢ Net sales 260,000 240,000 Cost of goods sold (180,000) (157,500) Gross profit 80,000 82,500 Operating expenses…Analyze and compare Clorox and Procter & Gamble The Clorox Company (CLX) and The Procter & Gamble Company (PG) produce and sell packaged consumer products around the world. Income and interest expense information from financial statements for a recent year follows (in millions): Clorox Procter & Gamble Interest expense $88 $579 Income before income tax expense 983 13,369 a. Compute the times interest earned for each company. Round to one decimal place. Clorox: fill in the blank 1 Procter & Gamble: fill in the blank 2 b. If you were a lender to these two companies, which one appears to have the greater coverage of interest expense and thus the greater protection for your loan interest?
- Packaging Corporation of America produces containerboard and white papers. WestRock Co. manufactures paper products and corrugated products. Financial statement data for these two companies follow: Packaging Corporation of America ($ in millions of dollars) 2015 2016 2017 2018 Sales $5,779.0 689.2 $6,444.9 $7,014.6 Accounts receivable at December 31 $636.5 830.7 901.9 WestRock Co. ($ in millions of dollars) 2015 2016 2017 2018 $14,171.8 1,592.2 $14,859.7 1,886.8 $16,285.1 2,010.7 Sales Accounts receivable at December 31 $1,575.4 Source: Computed from amounts in the Packaging Corporation of America and WestRock Co. Form 10-Ks for 2014- 2018. In 2015 and 2016, WestRock was known as WRKC.., Inc. Required: 1. Determine the receivables turnover ratios for both companies for 2016, 2017, and 2018. (Use 365 days in a year. Do not round intermediate calculations. Round your answers to 1 decimal place.) 2. Which company collected its accounts receivable more quickly in 2018?Computing NOPAT, NOPM and RNOA LVMH Moët Hennessy Louis Vuitton SE (LVMH) is a French multinational luxury goods conglomerate headquartered in Paris. The following information is selected from their 2017 annual report. (€ thousands) Revenue Operating income Net interest expense and other nonoperating expense Net income Operating assets Operating liabilities LVMH has an income tax rate of approximately 30% a. Compute LVMH's net operating profit after taxes (NOPAT) for 2017 and 2016. Round answers to the nearest whole number. 2016 € 2017 € 2017 2016 42,636 37,600 8,113 6,904 179 432 5,616 4,363 67,246 58,504 26,714 24,340 b. Compute LVMH's net operating profit margin (NOPM) for each year. Round answers to one decimal place. (Ex: 0.2345 = 23.5%) %6 2016 2017 c. Compute LVMH's return on net operating assets (RNOA) for 2017. Round answers to one decimal place. (Ex: 0.2345 = 23.5%) 2017The following table shows income statement and balance sheet data for five U.S. industries in 2017. INCOME STATEMENT AND BALANCE SHEET FOR 2017SELECTED U.S. INDUSTRIES FOR 2017(Figures in $ billions) Food Pharmaceuticals Oiland Coal Computers andPeripherals FoodStores Income Statement Data: Sales $ 666.9 $ 427.5 $ 802.0 $ 216.0 $ 474.2 Cost of goods sold 596.1 352.4 757.8 189.7 451.0 Balance Sheet Data: Inventory $ 67.8 $ 56.8 $ 44.2 $ 11.3 $ 27.9 Accounts receivable 56.6 68.1 52.8 23.7 7.4 Accounts payable 49.0 42.3 50.3 39.5 23.7 Note: Cost of goods sold includes selling, general, and administrative expenses. Source: U.S. Department of Commerce, Quarterly Financial Report for Manufacturing, Mining, Trade Corporations, and Selected Service Industries,…
- Coca-Cola and PepsiCo are two of the largest and most successful beverage companies in the world in terms of the products that they sell and their receivables management practices. To evaluate their ability to collect on credit sales, consider the following information assumed to have been reported in their 2020, 2019, and 2018 annual reports (amounts in millions). Coca-Cola PepsiCo 2019 Fiscal Year Ended: 2020 2019 2018 2020 Net Sales $31,844 $36,857 3,383 68 $25,288 2,770 75 $ 49,251 3,904 82 $44,274 3,790 81 2018 $36,337 3,267 76 Accounts Receivable 3,161 67 Allowance for Doubtful Accounts Accounts Receivable, Net of Allowance 3,094 3,315 2,695 3,822 3,709 3,191 Required: 1. Calculate the receivables turnover ratios and days to collect for Coca-Cola and PepsiCo for 2020 and 2019. (Consider a 365 days a year. Round your intermediate answers and final answers to 1 decimal place.) 2020 Coca-Cola PepsiCo Receivables turnover ratio Days to collect 2019 Receivables turnover ratio times…Tools For All (TFA) is a global supplier of tools and related accessories. The following data were taken from the company’s 2018 annual report. Dollar amounts are in millions. Fiscal Years Ending December 31, 2018 December 31, 2017 Current assets $4,547.8 $4,500.0 Current liabilities 4,091.2 4,389.9 Total assets 19,744.0 19,506.9 Total liabilities 11,170.4 10,423.5 Required a. Compute TFA’s current ratios for 2018 and 2017. (Round your answers to 2 decimal places.) b. Compute TFA’s debt-to-assets ratios for 2018 and 2017. (Round your answers to 2 decimal places.) c. Based on the ratios computed in Requirements a and b, did TFA’s liquidity get better or worse from 2017 to 2018? d. Based on the ratios computed in Requirements a and b, did TFA’s solvency get better or worse from 2017 to 2018?Millennial Manufacturing has net credit sales for 2018 in the amount of $1,433,630, beginning accounts receivable balance of $585,900, and an ending accounts receivable balance of $621,450. Compute the accounts receivable turnover ratio and the number of days sales in receivables ratio for 2018 (round answers to two decimal places). What do the outcomes tell a potential investor about Millennial Manufacturing if industry average is 2.6 times and number of days sales ratio is 180 days?
- Inverness Steel Corporation is a producer of flat-rolled carbon, stainless and electrical steels, and tubular products. The company's income statement for the 2021 fiscal year reported the following information ($ in millions): Sales $ 6,255 Cost of goods sold 5,190 The company's balance sheets for 2021 and 2020 included the following information ($ in millions): 2021 2020 Current assets: Accounts receivable, net $ 703 $ 583 Inventories 880 808 The statement of cash flows reported bad debt expense for 2021 of $8 million. The summary of significant accounting policies included the following notes ($ in millions): Accounts Receivable (in part)The allowance for uncollectible accounts was $10 and $7 at December 31, 2021 and 2020, respectively. All sales are on credit. InventoriesInventories are valued at the lower of cost or market. The cost of the majority of inventories is measured using the last-in, first-out (LIFO)…Determining Cost of Goods Sold For a recent year, TechMart reported sales of $51,322 million. Its gross profit was $14,370 million. What was the amount of TechMart's cost of goods sold? (Enter answer in millions.)$ millionUse the following Income Statement and Balance Sheet Information for 2018 to answer the question below. This is a Retail Company. All numbers are in Millions. Income Statement Total Sales213.8 Cost of Sales151.3 Gross Profit213.8-151.3 Selling and Administrative Expenses22.3 Research and Development 7.7 Depreciation and Amortization4.5 Other Income2.4 EBIT213.8-151.3-22.3-7.7-4.5+2.4 Interest Expense5.8 Pretax Income213.8-151.3-22.3-7.7-4.5+2.4-5.8 Taxes( 213.8-151.3-22.3-7.7-4.5+2.4-5.8 )*0.30 Net Income( 213.8-151.3-22.3-7.7-4.5+2.4-5.8 )*0.70 Balance Sheet Assets Liabilities Cash65.8Accounts Payable43.3Accounts Receivable54.4Notes Payable/Short term debt1.6Inventories4.4 Total Current Assets65.8+54.4+4.4Total Current Liabilities43.3+1.6 Net property, plant and equipment103.4Long-term debt80.0Total long-term assets103.4Total long-term debt liabilities80.0 Total Liabilities43.3+1.6+80.0 Stockholders' Equity (Total Equity)65.8+ 54.4+4.4+103.4-43.3-1.6-80.0Total…