Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

I really truly appreciate any and all help!!! using info given or the yahoo finance under get quotes i need to compare CAT (Caterpillar Inc.)

I really truly appreciate any and all help!!! using info given or the yahoo finance under "get quotes" i need to compare CAT (Caterpillar Inc.) and MMM (3M company) for year ended 12/31/2022. I have most parts complete. looking for help on parts 4K 4L 4M.
i need the strength and weaknesses of each part. there are comparisons. please please please include computations! thank you so much to whoever helps!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
PART 4D. oent to equir rano Debt to Equity Ratio- total liahilities/sharehodders equity COMPUIAIONS CAT. 566,022,000/15,891,000 r CAI MMM STRENGTHS AND WEAKNIRSES CAT has more liabilities per dollar of equity than does MMM. MMM: 53,645,000/14,770,000 : 2.15 PART 41. INVENTORY TURNONER Inventory Turnover-cost of goods sold/avg. inventory STRENGTHS AND WEAKNESSES MMM has a higher inventory turnover ratio meaning that the averade inventory balance is sold more during a reporting period than CAT PART 4G. RECEIVABLES TURNOVER Receivables Turnover=net sales/ ang, accounts receivable COMPUTAIIONS CAT: $59,427,000/17,622,000= MMM MMM: $34,229,000/4,596,000= 7.45 STRENGTHS AND WEAKNESSES MMM has a higher ratio meaning that it takes them a shorter averaje time between sales and cash collection. PART 4M. UVERAGE COMPUTAIIONS CAI MMM STRENGTHS AND WEAKNESSES PARI 4H. AVERAGE COLIECION PERIOD =365 days/recelvables turnover ratio CAT: 365/3.37= COMPUTAINONS 108.31darsCAI STRENGTHS AND WEAKNESSES MMM has a lower average collection period meaning there accounts receivable balance is outstanding for less amount of days. \begin{tabular}{|c|c|c|c|c|c|} \hline \multirow{2}{*}{98} & \multirow[t]{2}{*}{ PARI 4A. } & & & \multirow[t]{2}{*}{ Vinficat auires } & \\ \hline & & & & & \\ \hline \multicolumn{6}{|l|}{18} \\ \hline 11. & & & COMPutanons & cal & mun. \\ \hline 12 & Cost of Revernoe as a $ of Total Revenue- Cont of revenueotal revenue & CAI PALP15000 & x/52,47,000= & & \\ \hline B & Gross Frotit as a X of Total Revenue - Gross profithotal revmo & CAD 517512000 & 0/50,427,000= & rans & \\ \hline & & cenissibs1.000ts & Ha,4z1000: & 2518 & Menue 59,045,00013t,2m000 \\ \hline 15: & Operating Inconse as a K of Jotal Revernue- Operating income/thotal reverne & CAn sesarenoory & 839,427000= & seses & MVMe 34006,0003422000 . \\ \hline & & CAt 56 ros.o00/3 & & & \\ \hline 17. & & & & & \\ \hline \multicolumn{6}{|l|}{1817} \\ \hline \\ \hline 20: & STHEVGTS ANO WLACNESSES. & & & & \\ \hline 21 & It seems as though MMM is doing better because their cost of rewenue as a % & & & & \\ \hline \\ \hline \multirow{2}{*}{\multicolumn{6}{|c|}{222}} \\ \hline \multirow{2}{*}{\multicolumn{6}{|c|}{24}} \\ \hline is & +1 & & & & \\ \hline & & & & & \\ \hline \end{tabular} K. Pretum on Assets using the exparked expression. (broken down into ifs two parts). Indicate which compary is doing bettor in each part of the computation. Also include a discussion on which part of the computation each company needs to improve on in order to increase their Return on Assets. Give examples specific things they can do to inprove in each pat of the computation. 1 L. Return on shareholder's equity using the Dupont Formula. Indicate which company is doing better including a break down of each part of the computation. Also include a discussion on which part of the computation each company needs to improve on in order to increase their Return on Shareholder's Equity. Give examples of specific things they can do to improve each part of the computation M. Which company is doing better with leverage? Use the more sophisticated way of computing your rate of return on average total assets as described in the "Profitability Part2' video. Which company is doing a better job trading on equity?mWhich company would have the greatest opportunity to borrow more money in order to increase their rate of relum on equity without increasing risk? Why? PART 4L. RETURN ON SHAREHOLDER'S EQUITY USING THE DUPONT FORMULA STRENGTHS AND WEAKNESSES PART 4 B. CURAENT RATIO Current Fatio= current assets/current liabilities COMPUTAIIOAE CA MMM CAI: $81,941,000/66,052,000= 1.24 MMM: 545,455,000/31,635,000= STRENGTHS AND WEAKNESSES MMM has $1.45 of current assets for each $1 of current liabilities which is PART 4K. RETURN ON ASSETS USING THE EXPANDED EXPRESSION COMPUTATIONS CAI MMM STRENGTHS AND WEAKNESSES WRT AE. TIMES INTERIST EARIID 443,000= 20. 462,000= SmENGTHS AND WEAKNESSE5 The insudstry average is approximately 19.38 , meaning that CAT has a better PMRT AC. ACID TESI RANO Acld Test Ratio = Current Assets/Current Labilitien STRENGTHS ANO WEAXNESSES Both are higher than the industry average. By exceeding 1.0 both companies show that they have enough liquid assests to cover their current liabilities. MMM is sitting in a slightly better position. PART 4 D. DEat to EquITY RATIO Debt to fquity fatio= total liabilities/shareholders equity MMeM ca 514,684000 Ci 159523000 Debt to fquity Fatio= totar hibitinties/shareholdess equily

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

which of the follwing is a disadvantage of field calibartion?

Answered: 1 week ago