Refer to the balance sheet and income statement for Abercrombie Supply Company for the year ended June
Question:
a. Inventory turnover.
b. Days sales outstanding.
c. Total asset turnover.
d. Fixed asset turnover.
e. Total debt ratio.
f. Debt-to-equity ratio.
g. Times-interest-earned.
h. Cash coverage.
Abercrombie Supply Company Income Statement for the Fiscal Year Ended June 30, 2017 ($ thousands) Net sales $2,110,965 Cost of goods sold Selling and administrative expenses Nonrecurring expenses Earnings before interest, taxes, depreciation, and amortization (EBITDA) 1,459,455 312,044 27,215 $ 312,251 112,178 Depreciation Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Taxes (35%) $ 200,073 117,587 $ 82,486 28,870 $ 53,616 Net income Abercrombie Supply Company Balance Sheet as of June 30, 2017 ($ thousands) Liabilities and Equity: Accounts payable Notes payable Assets: Cash and marketable securities $ 396,494 $ 817,845 Accounts receivable 708,275 101,229 Inventory 1,152,398 Accrued income taxes 41,322 Other current assets 42,115 Total current liabilities $ 960,396 Total current assets $2,299,282 Long-term debt 1,149,520 Net plant and equipment 1,978,455 Total liabilities $2,109,916 Common stock 1,312,137 Retained earnings Total common equity Total liabilities and equity 855,684 $2,167,821 Total assets $4,277,737 $4,277,737
Step by Step Answer:
Ratio Calculation Value Inventory turnover 1459455 1152398 127 Days sa...View the full answer
Fundamentals of Corporate Finance
ISBN: 978-1119371403
4th edition
Authors: Robert Parrino, David S. Kidwell, Thomas Bates
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Business questions
-
Refer below to the balance sheet and income statement for Abercrombie Supply Company for the year ended June 30, 2014. Calculate the following ratios: a. Inventory turnover b. Days' sales outstanding...
-
Refer to the balance sheet and income statement for Research In Motion in Appendix A. What does the company title its inventory account? Does the company present a detailed calculation of its cost of...
-
Refer to the balance sheet and income statement for Polaris in Appendix A. What does the company title its inventory account? Does the company present a detailed calculation of its cost of sales?
-
A process is controlled with a fraction nonconforming control chart with three-sigma limits, n = 100, UCL = 0.161, center line = 0.080, and LCL = 0. (a) Find the equivalent control chart for the...
-
Do items reported as a credit memorandum on the bank statement represent (a) additions made by the bank to the company's balance or (b) deductions made by the bank from the company's balance? Explain.
-
For the following exercises, find the distinct number of arrangements. How many ways can a committee of 3 freshmen and 4 juniors be formed from a group of 8 freshmen and 11 juniors?
-
The Yuan as a Reserve Currency. What is a reserve currency? Do you believe that the Chinese yuan will reach reserve currency status?
-
D&F is a distributor of CDs and cassettes that offers benefits such as discount prices and an introductory offer often CDs or cassettes for a penny (not including the shipping and handling costs)....
-
2. (10 pts) Use the graph of f(x) given below to answer all the p Please pay attention to scaling in both the x-axis and y-axis. a.) What is the domain of f(x)? Please write answer in interva b.)...
-
1. How does Tesla Motors marketing strategy connect with the changes going on in the consumer decision journey today? Do you believe that they can be successful over the long-term with this kind of...
-
Using the 2017 data for the Abercrombie Supply Company, calculate the following liquidity ratios: a. Current ratio. b. Quick ratio.
-
Last year ABC companies had accounts receivable turnover of 15, total asset turnover of 4.5, and total assets of $1,000,000. What was the value of ABCs accounts receivable? What was the value of its...
-
For the carbon and nitrogen family hydrides, we have the following boiling points: Carbon Family, C Nitrogen Family, C CH4, 164 NH3, 33 SiH4, 112 PH3, 88 GeH4, 88 AsH3, 55 SnH4, 52 SbH3, 17 Account...
-
1. Lesotho's footwear industry currently consists of two footwear manufacturers, one in Maseru and the other in Maputsoe. In Maseru, the marginal benefit associated with pollution cleanup is MB...
-
Without using jargon, explain the key advantages of a UNIX operating system as if you were explaining it to a high school student who is unfamiliar with computer science terminology. Describe the...
-
How do Windows systems prevent system file modification? How about Unix and Linux systems? How can a forensic examiner determine if the system files have been compromised? cite references
-
The president of Saint Albin, a little-known Caribbean island nation, has generated some controversy by stating that they are the healthiest economy on earth because their country's nominal GDP...
-
B.M. SOAT provides fresh seafood products to local customers and frozen products to overseas markets. Customers can pay by cash, an in-house credit account, or a credit card. The credit card company...
-
When is a contractual term ambiguous? Describe how courts resolve disputes over ambiguous terms.
-
Dawson Companys balance sheet information at the end of 2019 and 2020 is as follows: Additional information: The company did not issue any common stock during 2020. Required : Next Level Fill in the...
-
Cash Flow to Creditors The 2006 balance sheet of Marias Tennis Shop, Inc., showed long-term debt of $3.1 million, and the 2007 balance sheet showed long-term debt of $3.3 million. The 2007 income...
-
Cash Flow to Stockholders the 2006 balance sheet of Marias Tennis Shop, Inc., showed $860,000 in the common stock account and $6.9 million in the additional paid-in surplus account. The 2007 balance...
-
Calculating Total Cash Flows Given the information for Marias Tennis Shop, Inc., in Problems 11 and 12, suppose you also know that the firms net capital spending for 2007 was $760,000, and that the...
-
Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accum. depreciation-Equipment Total assets...
-
A company issued 10-year, 7.75% bonds with a face value of $100,000. The company received $97,817 for the bonds. Using the straight-line method of amortization, the amount of interest expense for the...
-
Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for...
Study smarter with the SolutionInn App