Given the financial statements:
Compute the Actual Inventory Turnover Ratio for 2016
State to the second decimal place: 35.417 would be entered as 35.42
Don't round until the end of the problem.
Balance Sheet Actual Financial Results 31-Dec 2014 2015 2016 2017 2018 2019 Assets Current Assets Cash and cash equivalents 1,089 970 1,315 1,535 726 883 Receivables (net) 1,552 1,427 1,411 1,480 1,400 1,440 Inventories 1,382 1,180 1,171 1.221 1,250 1,400 Other current assets 840 807 441 403 417 456 Total current assets 4,863 4,384 4,338 4,639 3,793 4,179 Property, plant and equipment, net 4,080 3,796 3,840 4,072 3.881 3,750 Goodwill 2,307 2,103 2,107 2.218 2,530 3,508 Other intangible assets, net 1,413 1,346 1,313 1,341 1,637 2,667 Deferred income taxes 76 67 301 188 152 177 Other assets 720 262 224 218 168 753 Total non-current assets 8,596 7,574 7,785 8,037 8,368 10.855 Total assets 13,459 11,958 12,123 12.676 12,161 15,034 Liabilities and Shareholders' Equity Current Liabilities Notes and loans payable 16 4 13 11 12 260 Current portion of long-term debt 488 298 254 Accounts payable 1,231 1,110 1,124 1,212 1,222 1,237 Accrued income taxes 294 277 441 354 411 370 Other accruals 1,917 1,845 1,727 1,831 1.696 1,917 Total current liabilities 3,946 3,534 3,305 3,408 3,341 4,038 Long-term debt 5,644 6,269 6,520 6,566 6,354 7,333 Deferred income taxes 261 233 246 204 235 507 Other liabilities 2,223 1,966 2,035 2,255 2,034 2,598 Total Non-Current Liabilities 8,128 8,468 8,801 9,025 8.623 10,438 Total liabilities 12,074 12.002 12,106 12,433 11,964 14,476 Shareholders' Equity Common stock, $1 par value 1,466 1,466 1,466 1,466 1,466 1,466 Additional paid-in capital 1,236 1,438 1,691 1,984 2.204 2,488 Retained earnings 18,832 18.861 19,922 20,531 21,615 22,501 Accumulated other comprehensive income (loss) (3,507) (3,950) (4.180) (3,855) (4,188) (4,273) Unearned compensation (20) (12) (7) (5) (3) (2) Treasury stock, at cost (16,862) (18,102) (19,135) (20,181) (21,196) (22,063) Total Company shareholders' equity 1,145 (299) (243) (60) (102) 117 Plus Non-controlling interests 240 255 260 303 299 441 Total equity 1,385 (44) 17 243 197 558 Total liabilities and equity 13,459 11,958 12,123 12,676 12,161 15,034 Income Statement Actual Financial Results 31-Dec 2014 2015 2016 2017 2018 2019 Net sales 17,277 16,034 15,195 15,454 15,544 15,693 Cost of sales 7,168 6,635 6,072 6,174 6,313 6,368 Gross profit 10,109 9,399 9,123 9,280 9.231 9,325 Selling, general and administrative expenses 5,982 5,464 5,249 5,400 5.389 5,575 Other (income) expense, net 570 62 37 173 148 196 Charge for Venezuela accounting change 1,084 Operating profit (EBIT) 3,557 2.789 3,837 3,707 3,694 3,554 Non-service related postretirement costs 118 87 108 Interest expense, net 24 26 99 102 143 145 Income before income taxes 3,533 2,763 3,738 3,487 3,464 3,301 Provision for income taxes 1,194 1.215 1,152 1,313 906 774 Net income 2,339 1,548 2,586 2,174 2,558 2,527 Statement of Cash Flow Actual Financial Results 31-Dec 2014 2015 2016 2017 2018 2019 Operating Activities 2,339 1,548 2,586 2,174 2,558 2,527 Net income Adjustments to reconcile net income to net cash provided by operations: Depreciation and amortization 442 449 443 475 511 519 604 1,074 20 520 142 22 Net effects of other non-cash Gains or losses Cash effects of changes in: Receivables (109) (75) (17) (15) (79) 19 Inventories (60) (13) (4) (8) (58) (77) Accounts payable and other accruals 57 (67) 100 (96) 18 36 Other non-current assets and liabilities 25 33 13 4 (36) 87 Net cash provided by operations 3,298 2.949 3,141 3,054 3,056 3,133 Investing Activities Capital expenditures (778) (533) (541) (471) (1,156) (2,045) (340) (742) (336) (347) (169) (184) Purchases of marketable securities and investments Proceeds from sale of marketable securities and investments 283 599 378 391 156 131 (835) (676) (499) (427) (1,169) (2,098) Net cash used in investing activities Financing Activities Principal payments on debt (8,525) (9,181) (7,274) (4,808) (7,355) (6,611) Proceeds from issuance of debt 8,960 9,602 7,438 4,779 7,176 8,059 Dividends paid (1,446) (1,493) (1,508) (1,529) (1,591) (1,614) Purchases of treasury shares (1,530) (1,551) (1,335) (1,399) (1,238) (1,202) Proceeds from exercise of stock options 371 347 446 507 329 498 Net cash used in financing activities (2,170) (2,276) (2,233) (2,450) (2,679) (870)
