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(Click the icon to view the income statement) The Colvin 2018 income statement and balance sheet follows. (Click the icon to view the assets section

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(Click the icon to view the income statement) The Colvin 2018 income statement and balance sheet follows. (Click the icon to view the assets section of the balance sheet.) Click the icon to view the liabilities and stockholders' equity sections of the balance sheet.) Read the requirements a. Use the income statement and the balance sheet to calculate Colvin's rate of inventory turnover and days' inventory outstanding for 2018 Begin by selecting the formula and then enter the amounts to calculate inventory turnover. (Enter currency amounts in millions as given in the question Round the inventory turnover to two decimal places, X.XX.) Inventory turnover Colvin Corportion Balance Sheets (Adapted) December 31, 2018 and 2017 Increase (Decrease) Amount Percentage 2018 2017 $ 1,280 $ 360 39.1 % (Dollar amounts in millions) Assets Current assets: Cash and cash equivalents Short-term investments Receivables, net Inventories Prepaid expenses and other assets 920 $ 76 10 (86.8) (26.9) 190 (66) (70) 156 (66) 260 70 340 226 274 222.9 (19.4) 1,980 1,666 314 Total current assets 18.8 2,748 82.3 Property, plant, and equipment, net Intangible assets 6,088 1,018 810 3,340 878 140 15.9 720 90 Other assets 12.5 $ 9,896 $ 6,604 $ 3,292 Total assets 49.8 % Colvin Corporation Statements of Income (Adapted) Year Ended December 31, 2018 and 2017 (Dollar amounts in millions) 2018 2017 Net revenues $ 9,900 $ 3,700 9,050 4,700 6,200 3,100 4,350 3,100 Cost of goods sold Gross profit General and administrative expenses Income from operations Interest expense, net Income before income taxes 1,250 3,100 620 140 1,110 2,480 995 260 Provision for income taxes $ 1,485 $ 850 Net income Increase (Decrease) Amount Percentage 2018 2017 (Dollar amounts in millions) Liabilities and Stockholders' Equity Current liabilities: Accounts payable Income tax payable Short-term debt 960 $ 890 $ 70 7.9 % 45 75 (40.0) 8.7 115 (30) 10 (5) 125 70 Other 75 (6.7) 1,200 1,155 45 3.9 Total current liabilities Loriy-term debt Other liabilities 109.8 6,288 1,110 2,997 1,000 3,291 110 11.0 8,598 5,152 3,446 66.9 2 2 Total liabilities Stockholders' equity: Common stock Retained earnings Accumulated other comprehensive (loss) Total stockholders' equity (11.9) 1,436 (140) 1,630 (180) (194) 40 22.2 1,298 1,452 (154) (10.6) $ Total liabilities and stockholders' equity 9,896 $ 6,604 $ 3,292 49.8 %

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