Financial Statement Analysis Case: Revlon The following information is from the 2016 financial statements of Revlon, the beauty products company. 2014 Balance Sheet Information (in million of dollars)* At December 31 2016 2015 Accounts Receivable $ 423.9 $ 244.9 Inventories 424.6 183.8 Accounts Payable 296.9 201.3 Income Statement Information For the year 2016 2015 Sales (all credit) $2,334.0 $1,914.3 Cost of Goods Sold 9171 667.8 $ 238.9 156.6 153.5 2014 $1,941.0 668.3 Clipboard Font Styles Analysis Sensitivity Clipboard Font Styles Analysis Sensitivity D65 D65 X D E F H B D E F H 6.98 52.29 7.91 46.12 2015 V A B 10 Operating Cycle and Cash Operating Cycle 11 Computations for 2015 and 2016 12 Accounts Receivable Turnover Ratio 2016 Ic 13 Credit Sales 2,334.0 E 14 Average Accounts Receivable 334.4 15 Accounts Receivable Turnover Ratio 6.98 16 17 18 Comment on change from year to year: ne 19 1,914.3 241.9 7.91 U 20 Microsoft Search (Alt+Q) Just start typing here to bring features to your fingertips and get help. 2016 183.8 424.6 608.4 2 304.20 2015 156.6 183.8 340.4 2 201 ? Tell me more 170.20 2016 244.9 423.9 668.8 2 334.40 244.9 483.8 2 241.90 21 22 23 Average Accounts Receivable 24 Beginning Accounts Receivable cur 25 Ending Accounts Receivable 26 Total in Numerator 27 Divided by 28 Average Accounts Receivable 29 30 31 Days Sales Outstanding 32 Number of days in a year 33 Accounts Receivable Turnover Ratio 34 Days Sales Outstanding 35 36 37 Comment on change from year to year: : 38 39 40 33 Accounts Receivable Turnover Ratio 34 Days Sales Outstanding 35 36 37 Comment on change from year to year: 38 39 40 41 42 Average Inventory 43 Beginning Inventory 44 Ending Inventory 45 Total in Numerator 46 Divided by 47 Average Inventory 48 49 50 Inventory Turnover Ratio 51 Cost of Goods Sold 52 Average Inventory 53 Inventory Turnover Ratio 54 55 56 Comment on change from year to year: 57 58 59 60 61 Days Inventory on Hand 62 Number of days in a year 63 Inventory Turnover Ratio 64 Days Inventory on Hand 65 66 67 Comment on change from year to year: 68 69 70 71 Munrann Accountr Dublo 2016 917.1 304.20 3.01 2015 667.8 170.20 3.92 2016 365 6.98 52.29 2015 365 7.91 46.12 2016 365 3.01 121.07 2015 365 3.92 93.03 41 42 Average Inventory 43 Beginning Inventory 44 Ending Inventory 45 Total in Numerator 46 Divided by 47 Average Inventory 48 2016 183.8 424.6 608.4 2 304.20 2015 156.6 183.8 340.4 2 170.20 An 2016 2015 Average Accounts Payable Beginning Accounts Payable Ending Accounts Payable Total in Numerator Divided by Average Accounts Payable 2016 VALUE VALUE FORMULA 2 2015 VALUE VALUE FORMULA 2 FORMULA FORMULA Accounts Payable Turnover Ratio Cost of Goods Sold Average Accounts Payable Accounts Payable Turnover Ratio 2016 VALUE FORMULA FORMULA 2015 VALUE FORMULA FORMULA Comment on change from year to year: Days Accounts Payable Outstanding Number of days in a year Accounts Payable Turnover Ratio Days Accounts Payable Outstanding 2016 365 FORMULA FORMULA 2015 365 FORMULA FORMULA Comment on change from year to year: Operating Cycle Days Sales Outstanding Days Inventory on Hand Operating Cycle 2016 FORMULA FORMULA FORMULA 2015 FORMULA FORMULA FORMULA Comment on change from year to year: Cash Operating Cycle Days Accounts Payable Outstanding Operating Cycle Cash Operating Cycle 2016 FORMULA FORMULA FORMULA 2015 FORMULA FORMULA FORMULA Comment on change from year to year