Hi! I'm working on the following problem and would like some help: The Professor provided the following to check the attached. I am having difficulty getting step 5 & 6 The first check 10 figures below: 1) EPS (12/31/2015) = $2.02 2) Current ratio = 4.77 3) Gross (Profit) Margin Percentage = 95.4% 4) Rate of Return (Net Profit Margin) on Sales = 17.3% 5) Inventory Turnover = 1.0 6) Days' inventory outstanding (DIO) = 363 days 7) Accounts Receivable Turnover = 7.1 8) Days' sales outstanding = 51.5 days 9) Asset turnover = 0.41 10) Rate of return on total assets (ROA) = 7.1%

Can you explain or show how to get to the following information. I am able to locate $420 within the annual report but not sure where to find the 418

Inventory Turnover Cost of goods sold $420 Average inventory $418

Go to the Course Resources page within the CourseSpecific Resources section. The Course Resources page is under Course Home. A Comparative Analysis of Celgene Corporation and Gilead Sciences, Inc. Prepared By: Cynthia Ritchardson and Mohamed Ragab. Jun-17 ACCT-504 Prof. Melinda Howerton Celgene Corporation is a Biotechnology Company that specializes in developing cancer and inflamatory disease drugs. Founded in 1986 and headquartered in Summit, NJ. Revenue in 2015 was $9 Billion. Gilead Sciences, Inc. is a research-based biopharmaceutical company that discovers, develops and commercializes innovative medicines in areas of unmet medical need. We strive to transform and simplify care for people with life-threatening illnesses around the world. Gilead's portfolio of products and pipeline of investigational drugs includes treatments for HIV/AIDS, liver diseases, cancer, inflammatory and respiratory diseases, and cardiovascular conditions. (Advancing Therapeutics, Improving Lives About Gilead, n.d.) Headquarters: Foster City, CA Revenue: 30.4 billion USD (2016) Number of employees: 7,900 (2015) Founder: Michael L. Riordan Subsidiaries: Bristol Myers Squibb & Gilead Sciences LLC, (Gilead Sciences Biotecnology Company, n.d.) Use this Excel spreadsheet to compute ratios; show your computations for all ratios on this tab, and also include your commentary. The 2015 financial statements used to calculate these ratios are available in the Investor Relations section of the Celgene and Gilead Sciences websites. Celgene Corporation Interpretation and comparison between the two companies' ratios (reading Chapter 13 will help you prepare the commentary). Gilead Sciences, Inc. The comparison of the ratios is an important part of the project. A good approach is to briefly explain what the ratio tells us. Indicate whether a higher or lower ratio is better. Then compare the two companies on this basis. Remembereach ratio below requires a comparison. Earnings per Share of Common Stock (basic - common) Current Ratio As given in the income statement $ 2.02 $ 12.37 Current assets Current liabilities $9,401 $1,969 = 4.77 $24,763 $9,891 = 2.50 Gross margin Net sales $8,741 $9,161 = 95.4% $28,145 $32,151 = 87.5% Net income Net sales $1,602 $9,256 = 17.3% $18,106 $32,151 = 56.3% Inventory Turnover Cost of goods sold Average inventory $420 $418 1.0 times $3,014 $1,671 Days' inventory outstanding (DIO) 365 Inventory turnover 365 1.0 = 363 days 365 1.8 = Accounts Receivable Turnover Net sales (assume all sales are credit sales) Average net accounts receivable $9,161 $1,294 = Days' Sales Outstanding (DSO) 365 Accounts receivable turnover 365 7.1 Net sales Average total assets $9,161 $22,197 Gross (Profit) Margin Percentage Rate of Return (Net Profit Margin) on Sales Asset turnover Rate of Return on Total Assets (ROA) Debt Ratio Times-Interest-Earned Ratio Dividend Yield (Please follow the Course Project instructions to calculate the current dividend yield.) Rate of Return on Common Stockholders' Equity (ROE) Celgene company does not pay dividends Free cash flow Price-Earnings Ratio (Multiple) (Please see the Course Project instructions for the dates to use for this ratio.) Rate of return on sales times asset turnover 1.8 times 202 days 7.1 $32,151 $5,245 = 6.1 51.5 days 365 6.1 = 59.5 days = 0.41 $32,151 $43,252 = 0.74 = 7.1% = 41.9% = Total Liabilities Total Assets $21,134 $27,053 = 78.1% $32,726 $51,839 = 63.1% Income from operations Interest expense $2,255 $311 = 7.3 22,193 688 = 32.3 Dividend per share of common stock (Yahoo Finance 12/31/2016) Market price per share of common stock (Yahoo Finance 12/31/2016) $0.00 $118.73 = 0.0% $1.84 $65.40 = 2.8% Net income - Preferred dividends Average common stockholders' equity $1,602 $2,548 62.9% $16,232 $9,673 = 167.8% = Net cash provided by operating activities minus cash payments earmarked for investments in plant assets Market price per share of common stock as of 12/31/2015 Earnings per share = $119.76 $2.02 = $ $78,065 59 492,274 = $101.19 $11.91 = 8 You all get the chance to play the role of financial analyst below. The summary should be a comparison of each company's performance for each major category of ratios listed below. Focus on major differences as you compare each company's performance. A nice way to conclude is to state which company you feel is the better investment and why. Measuring Ability to Pay Current Liabilities: Tootsie Roll has the advantage for the current ratio. Tootsie Roll has $4.11 in current assets for every dollar in current liabilities, while Hershey has only $1.16 in current assets for every dollar in current liabilities. Measuring Turnover: Hershey has the advantage for the inventory turnover and accounts receivable turnover ratios. Hershey turns over its inventory 5.6 times to Tootsie Roll's 5.2 times, and Hershey turns over its accounts receivable 13.8 times to Tootsie Roll's 12.9 times. Measuring Leverage - Overall Ability to Pay Debts: Tootsie Roll has significantly less debt than Hershey as evidenced by Tootsie Roll's 24.1% debt-to-asset ratio as compared to Hershey's 73% debt-to-asset ratio. Tootsie Roll can cover its interest expense 847.7 times with income before interest and taxes, while Hershey can only cover its interest expense 16.6 times with their income before interest and taxes. Tootsie Roll has the advantage for each of these ratios. Measuring Profitability: Hershey has the advantage for 4 of the 5 profitability ratios. Hershey has a significant edge in return on common stockholders' equity, with a 54% return on common stockholders' equity, as compared to Tootsie Roll's 9.2% return on common stockholders' equity. Hershey has a higher gross profit rate (45.0%- 36.9%), while Tootise Roll has a higher net profit margin ratio (11.7%-11.4%). Hershey also has a significant advantage for asset turnover (1.35-.60) and rate of return on total assets (15.4%-7.0%). Analyzing Stock as an Investment: Hershey returns a 2.6% dividend yield to its investors, while Tootsie Roll's yield is 1.1%. Hershey has positive free cash flow of $492.2 million, while Tootsie Roll has positive free cash flow of $78.1 million. Free cash flow can be used to undertake acquisitions, pay additional dividends, pay down debt, or buy back stock. Conclusion: Tootsie Roll is the safer investment when you examine their ability to pay current liabilities and overall liabilities; however, Hershey has the advantage for the turnover and profitability ratios. For the conservative investor, Tootsie Roll looks like the way to go because of their strong current and times-interestearned ratios. For the growth-oriented investor, Hershey is the way to go because of their stronger profitability ratios and large amount of free cash flow. Your textbook and any information that you use to profile the companies should be cited as a reference below. Advancing Therapeutics, Improving Lives About Gilead. (n.d.). Retrieved from Gilead: http://www.gilead.co Gilead Sciences Biotecnology Company. (n.d.). Retrieved from Google: https://www.google.com/search?q=gilead+ 8&oe=utf-8