Financial statement analysis Calculate and evaluate turnover and the cash conversion cycle The Metro 2018 balance sheet and income statement follow Metro Corporation Increase (Decrease) 2017 Dollar amounts in millions 2018 Amount Percentage Assets Current assets: 980 S $1,210$ 230 Cash and cash equivalents 23.5% Short-term investments (34) (70.8%) 230 268 Receivables, net 14.2% Inventories 102 32 45.7% 292 Prepaid expenses and other assets 302 1,668 Total current assets 1,848 10.8% 180 274 Property, plant, and equipment, net Intangible assets 3,660 3,386 172 1,020 848 20.3% 826 Other assets 730 13.2% 722 $7,354 $6,632$ Total assets 10.9% Liabilities and Stockholders' Equit Current liabilities: 860$ 966 $ Accounts payable 106 12.3% Income tax pavable 36.4% 128 Short-term debt 10.3% 2.9%) Other 1,202 Total current liabilities 8.3% 678 22.8% Long-term debt 3,648 2,970 29% Other liabilities 1,128 5,978 1,096 802 Total liabilities 5,176 15.5% Stockholders' equity Common stock 1,534 Retained earnings 1,640 186) 106 Accumulated other comprehensive (loss) 1,456 Total stockholders' equit 1,376 5.5% $7,354 $6,632$ 722 Total liabilities and stockholders' equity 10.9% Metro Corporation (Dollar amounts in millions) 2017 2018 $9,500 9,319 Net revenues Costs of goods solod 4,589 4,851 Gross proft 4,911 3,607 4,468 Selling, general and administrative expenses 3,456 Income from operations Interest expense, net 1,304 1,012 178 204 Income before income taxes 1,100 834 Provision for income taxes 389 251 583 Net income Use the blue shaded areas on the ENTERANSWERS tab for inputs Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instruction tab you will be marked wrong Requirements 1 Calculate Metro's rate of inventory turnover and days' inventory outstanding for 2018 Use a 365-day year for calculations as needed a. D. Use cell references from prior calculations, if applicable 2 Calculate days' sales in average receivables (days' sales outstanding) during 2018. Assume all sales are made on account a. Use a 365-day year for calculations as needed 3 Calculate accounts payable turnover and days' payables outstanding for 2018. For this purpose, assume that the impact of inventories on cost of goods sold is immaterial, allowing you to use cost of goods sold rather than purchases in your computations Use a 365-day year for calculations as needed a. D. Use cell references from prior calculations, if applicable 4 Calculate the length of cash conversion cycle in days for 2018 a. Use cell references from prior calculations, if applicable 1. Calculate Metro's rate of inventory turnover and days' inventory outstanding for 2018 (Always use cell references and formulas where appropriate to receive full credit. If you copy/ paste from the Instruction tab you will be marked wrong. Use cell references from prior calculations, if applicable.) nventory turnover Days' inventory outstanding (DIO) 2. Calculate days' sales in average receivables (days' sales outstanding) during 2018. Assume all sales are made on account. (Always use cell references and formulas where appropriate to receive full credit. If you copy paste from the Instruction tab you will be marked wrong.) Days' sales outstanding (DSO) 3. Calculate accounts payable turnover and days' payables outstanding for 2018. For this purpose, assume that the impact of inventories on cost of goods sold is immaterial, allowing you to use cost of goods sold rather than purchases in your computations. (Always use cell references and formulas where appropriate to receive full credit. If you copy paste from the Instruction tab you will be marked wrong. Use cell references from prior calculations, if applicable.) Accounts payable turnover Days' payables outstanding (DPO) 4. Calculate the length of cash conversion cycle in days for 2018. (Always use cell references and formulas where appropriate to receive full credit. If you copy/ paste from the Instructiontab yu wll be marked wrong. Use cell references from prior calculations, if applicable.) Cash conversion cycle (in days) strong. weak