AutoSave On HW 6(U) - Saved. File e Search Home Insert Page Layout Formulas Data Review View X Help Times New Roman 111 A A AA = == 2 25 Wrap Text BIU O A Merge & Center Paste General Clipboard $ -% 8-98 Forr Font Alignment Number G9 fx D E Required: For b and c, a Wh A C Leggett & Platt, Inc. reported net sales of $3,749.9 million in 2016 and $3,917.2 million in 2015. The asset side of the balance sheet follows. Use this information to answer the 2 required. 3 LEGGETT & PLATT, INCORPORATED 4 Consolidated Balance Sheets (excerpts) 5 (in millions) Dec 31, 2016 Dec 31, 2015 6 Current Assets 7 Cash and cash equivalents 281.90 253.20 Trade receivables, net of allowance $72 and 59.3, at December 8 31, 2016 and 2015, respectively 450.80 448.70 9 Other receivables, net 9 35.80 71,50 10 Total receivables, net 486.60 520.20 11 Inventories 12 Finished goods 255.70 242.80 13 Work in process 52.60 42.60 14 Raw materials and supplies 245.10 241.80 15 LIFO reserve -33 80 -22.60 16 Total inventories, net 519.60 504.60 17 Prepaid expenses and other current assets 36.80 3320 18 Total current assets 1324 90 131120 19 Property, plant and equipment - at cost 20 Machinery and equipment 1133.80 1099 10 Dinther ECO . CAO Q1 02 03 04 DO NOT USE or delete b. Con Interpretation c. Com Interpretation d. Basec The ou Ready Type here to search o a NU AutoSave On HW 6(1) - Saved. Search File Home Insert Page Layout Formulas Data Review View Help X 29 a Wrap Text General Times New Roman 11 AA BIUROA. Paste Merge & Center $ % & Cond Form Clipboard Font I Alignment Number G34 A B D E -33.80 519.60 36.80 1324.90 C -22.60 504.60 33.20 131120 Interpretation d Ba Thi 1133.80 559.40 37.70 1730.90 -1165.40 565.50 1099.10 548.20 40.00 1687.30 - 1146.50 540.80 15 LIFO reserve 16 Total inventories, net 17 Prepaid expenses and other current assets 18 Total current assets 19 Property, plant and equipment - at cost 20 Machinery and equipment 21 Buildings and other 22 Land 23 Total property, plant and equipment 24 Less accumulated depreciation 25 Net property, plant and equipment 26 Other Assets 27 Goodwill Other intangibles, less accumulated amortization of $137.0 and 28 $139.8 at December 31, 2016 and 2015, respectively 29 Sundry 30 Total other assets 31 Total assets 32 33 34 35 36 Q1 Q2 Q3 Q4 DO NOT USE or delete 791.30 806.10 164.90 188.40 137.50 1093.70 2984.10 117.20 1111.70 2963.70 Ready Type here to search o a Font %858 2Y Insert Delete Format Alignment Conditional Format as Cell Formatting Table Styles Styles Number Santa F Filters 6 Cells Editing D E G H L M N O O R Required: Compute the following liquidity, solvency and coverage ratios for 2017 and 2016 for Mullen, Inc.: For b and c, use % signs and round to one decimal place. a. What is the company's gross amount of receivables at the end of 2016 and 2015? (in Millions) 2016 493.80 Correct 2015 529.50 Correct b. Compute the common-size amount for gross accounts receivable, for both years. Interpret the year-over-year change in this ratio 2016 15.35 Try again! 2015 15.45% Try again! Interpretation C. Compute the allowance for doubtful accounts to gross accounts receivable, for both years. Interpret the year-over-year change in this ratio. 2016 1.57% Try again! 2015 2.03% Try again! Interpretation: d. Based on the ratios you calculated form an opinion about the quality of the company's accounts receivable. The quality of accounts receivables have increased just slightly as Company is holding less assets as accounts receivables than in prior year and the allowance a little bit lower 02 + Q3 Q4 DO NOT USE or delete a no td to search AutoSave On HW 6(U) - Saved. File e Search Home Insert Page Layout Formulas Data Review View X Help Times New Roman 111 A A AA = == 2 25 Wrap Text BIU O A Merge & Center Paste General Clipboard $ -% 8-98 Forr Font Alignment Number G9 fx D E Required: For b and c, a Wh A C Leggett & Platt, Inc. reported net sales of $3,749.9 million in 2016 and $3,917.2 million in 2015. The asset side of the balance sheet follows. Use this information to answer the 2 required. 3 LEGGETT & PLATT, INCORPORATED 4 Consolidated Balance Sheets (excerpts) 5 (in millions) Dec 31, 2016 Dec 31, 2015 6 Current Assets 7 Cash and cash equivalents 281.90 253.20 Trade receivables, net of allowance $72 and 59.3, at December 8 31, 2016 and 2015, respectively 450.80 448.70 9 Other receivables, net 9 35.80 71,50 10 Total receivables, net 486.60 520.20 11 Inventories 12 Finished goods 255.70 242.80 13 Work in process 52.60 42.60 14 Raw materials and supplies 245.10 241.80 15 LIFO reserve -33 80 -22.60 16 Total inventories, net 519.60 504.60 17 Prepaid expenses and other current assets 36.80 3320 18 Total current assets 1324 90 131120 19 Property, plant and equipment - at cost 20 Machinery and equipment 1133.80 1099 10 Dinther ECO . CAO Q1 02 03 04 DO NOT USE or delete b. Con Interpretation c. Com Interpretation d. Basec The ou Ready Type here to search o a NU AutoSave On HW 6(1) - Saved. Search File Home Insert Page Layout Formulas Data Review View Help X 29 a Wrap Text General Times New Roman 11 AA BIUROA. Paste Merge & Center $ % & Cond Form Clipboard Font I Alignment Number G34 A B D E -33.80 519.60 36.80 1324.90 C -22.60 504.60 33.20 131120 Interpretation d Ba Thi 1133.80 559.40 37.70 1730.90 -1165.40 565.50 1099.10 548.20 40.00 1687.30 - 1146.50 540.80 15 LIFO reserve 16 Total inventories, net 17 Prepaid expenses and other current assets 18 Total current assets 19 Property, plant and equipment - at cost 20 Machinery and equipment 21 Buildings and other 22 Land 23 Total property, plant and equipment 24 Less accumulated depreciation 25 Net property, plant and equipment 26 Other Assets 27 Goodwill Other intangibles, less accumulated amortization of $137.0 and 28 $139.8 at December 31, 2016 and 2015, respectively 29 Sundry 30 Total other assets 31 Total assets 32 33 34 35 36 Q1 Q2 Q3 Q4 DO NOT USE or delete 791.30 806.10 164.90 188.40 137.50 1093.70 2984.10 117.20 1111.70 2963.70 Ready Type here to search o a Font %858 2Y Insert Delete Format Alignment Conditional Format as Cell Formatting Table Styles Styles Number Santa F Filters 6 Cells Editing D E G H L M N O O R Required: Compute the following liquidity, solvency and coverage ratios for 2017 and 2016 for Mullen, Inc.: For b and c, use % signs and round to one decimal place. a. What is the company's gross amount of receivables at the end of 2016 and 2015? (in Millions) 2016 493.80 Correct 2015 529.50 Correct b. Compute the common-size amount for gross accounts receivable, for both years. Interpret the year-over-year change in this ratio 2016 15.35 Try again! 2015 15.45% Try again! Interpretation C. Compute the allowance for doubtful accounts to gross accounts receivable, for both years. Interpret the year-over-year change in this ratio. 2016 1.57% Try again! 2015 2.03% Try again! Interpretation: d. Based on the ratios you calculated form an opinion about the quality of the company's accounts receivable. The quality of accounts receivables have increased just slightly as Company is holding less assets as accounts receivables than in prior year and the allowance a little bit lower 02 + Q3 Q4 DO NOT USE or delete a no td to search