Financial Statement Analysis Case: Revlon The following information is from the 2019 financial statements of Revlon, the beauty products company. Revlon Ralanre Sheot Information (in millinn nf inllarel* L'Oreal Balance Sheet Information (in million of dollars)* Required: Use Revlon's and L'Oreals financial information to answer the follow questions: a. What is Revlon's operating cycle (in days) in 2019 and 2018 ? Comment on the change from year to year. b. What is Revlon's cash operating cycle (in days) in 2019 and 2018 ? Comment on the change from year to year. c. What is L'Oreal's operating cycle (in days) in 2019? What is L'Oreal's cash operating cycle (in days) in 2019? d. Use Revlon's financial information to compare the components of Revlon's operating cycle and cash operating cycle to L'Oral's for 2019. Surting the Standards Case 1: Contract Changes On January 2, 2018, TRL Learjetz, a calendar-year company, accepts a contract with a major airline to build four lear jets. TRL accepts a fixed fee of $300 million and must complete the project within three years. TRL Learjetz uses the percentage-of-completion method of accounting. It determines percent complete using the percentage of labor hours incurred relative to expected total labor hours. Management expects that it will take 2 million labor hours to build the four jets. During 2018, TRL incurs actual costs of $112 million and estimates that it will cost an additional $160 million to complete the jets. It incurred 800,000 labor hours during 2018. On January 3, 2019, TRL Lear jet agrees with its customer to upgrade the jets. The parties agree that the fixed fee for the four lear jets will now be $350 million. TRL estimates that this upgrade will require an additional 400,000 labor hours and additional costs of $40 million. Provide a memo to the file with your conclusions of how TRL should account for this contract upgrade, using the Codification for support. Provide any necessary computations. Financial Statement Analysis Case: Revlon The following information is from the 2019 financial statements of Revlon, the beauty products company. Revlon Ralanre Sheot Information (in millinn nf inllarel* L'Oreal Balance Sheet Information (in million of dollars)* Required: Use Revlon's and L'Oreals financial information to answer the follow questions: a. What is Revlon's operating cycle (in days) in 2019 and 2018 ? Comment on the change from year to year. b. What is Revlon's cash operating cycle (in days) in 2019 and 2018 ? Comment on the change from year to year. c. What is L'Oreal's operating cycle (in days) in 2019? What is L'Oreal's cash operating cycle (in days) in 2019? d. Use Revlon's financial information to compare the components of Revlon's operating cycle and cash operating cycle to L'Oral's for 2019. Surting the Standards Case 1: Contract Changes On January 2, 2018, TRL Learjetz, a calendar-year company, accepts a contract with a major airline to build four lear jets. TRL accepts a fixed fee of $300 million and must complete the project within three years. TRL Learjetz uses the percentage-of-completion method of accounting. It determines percent complete using the percentage of labor hours incurred relative to expected total labor hours. Management expects that it will take 2 million labor hours to build the four jets. During 2018, TRL incurs actual costs of $112 million and estimates that it will cost an additional $160 million to complete the jets. It incurred 800,000 labor hours during 2018. On January 3, 2019, TRL Lear jet agrees with its customer to upgrade the jets. The parties agree that the fixed fee for the four lear jets will now be $350 million. TRL estimates that this upgrade will require an additional 400,000 labor hours and additional costs of $40 million. Provide a memo to the file with your conclusions of how TRL should account for this contract upgrade, using the Codification for support. Provide any necessary computations