Part II: Accounts Payable Turnover and Days in Accounts Payable Find the most recent 10-K for The Toro Company. This 10-K is available on Canvas. The calculations below are for the most recent-year end. A. What is the accounts payable turnover ratio? Show the formula, the amounts, and all the steps (including the amount for any average) in the calculation. Also remember to show the scale (in millions, thousands, whatever the amounts are). B. What is the result for the days in accounts payable? Again, show all the steps in the calculation. C. Assume Toro has a stated payment policy, of paying its suppliers within 60 days. (This is just an assumption). Given your results above, what would you say about Toro's compliance, or lack thereof, with its stated payment policy? Would you make any suggestions to Toro? Is so, what would those suggestions be? 2019 2018 s 151,828 s 289,124 242,196 26,572 268, 768 651.663 50.632 1,122,891 437,317 6,251 362,253 352,374 49.461 2,330,547 s 185,128 8,050 193,178 358,259 54,076 894,637 271.459 38,252 225,290 105,649 35,697 1,570,984 S s THE TORO COMPANY AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands, except per share data) October 31 ASSETS Cash and cash equivalents Receivables, net: Customers, net of allowances (2019 - $3,270, 2018 - $2,228) Other Total receivables, net Inventories, net Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Deferred income taxes Goodwill Other intangible assets, net Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt Accounts payable Accrued liabilities: Warranty Advertising and marketing programs Compensation and benefit costs Insurance Interest Other Total current liabilities Long-term debt, less current portion Deferred income taxes Other long-term liabilities Stockholders' equity: Preferred stock, par value $1.00 per share, authorized 1,000,000 voting and 850,000 non-voting shares, none issued and outstanding Common stock, par value $1.00 per share, authorized 175,000,000 shares; issued and outstanding 106, 742,082 shares as of October 31, 2019 and 105,600,652 shares as of October 31, 2018 Retained earnings Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity The financial statements should be read in conjunction with the Notes to Consolidated Financial Statements 79,914 319,230 256,575 96,604 103,417 76,862 11,164 9,903 59,876 756,970 620,899 50,579 42,521 76,214 89.450 50,850 7,909 7,249 44,388 532,635 312,549 1,397 55,487 106,742 784,885 (32,049) 859,578 2,330,547 105,601 587,252 (23.937) 668,916 1,570,984 S S Part II: Accounts Payable Turnover and Days in Accounts Payable Find the most recent 10-K for The Toro Company. This 10-K is available on Canvas. The calculations below are for the most recent-year end. A. What is the accounts payable turnover ratio? Show the formula, the amounts, and all the steps (including the amount for any average) in the calculation. Also remember to show the scale (in millions, thousands, whatever the amounts are). B. What is the result for the days in accounts payable? Again, show all the steps in the calculation. C. Assume Toro has a stated payment policy, of paying its suppliers within 60 days. (This is just an assumption). Given your results above, what would you say about Toro's compliance, or lack thereof, with its stated payment policy? Would you make any suggestions to Toro? Is so, what would those suggestions be? 2019 2018 s 151,828 s 289,124 242,196 26,572 268, 768 651.663 50.632 1,122,891 437,317 6,251 362,253 352,374 49.461 2,330,547 s 185,128 8,050 193,178 358,259 54,076 894,637 271.459 38,252 225,290 105,649 35,697 1,570,984 S s THE TORO COMPANY AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands, except per share data) October 31 ASSETS Cash and cash equivalents Receivables, net: Customers, net of allowances (2019 - $3,270, 2018 - $2,228) Other Total receivables, net Inventories, net Prepaid expenses and other current assets Total current assets Property, plant and equipment, net Deferred income taxes Goodwill Other intangible assets, net Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current portion of long-term debt Accounts payable Accrued liabilities: Warranty Advertising and marketing programs Compensation and benefit costs Insurance Interest Other Total current liabilities Long-term debt, less current portion Deferred income taxes Other long-term liabilities Stockholders' equity: Preferred stock, par value $1.00 per share, authorized 1,000,000 voting and 850,000 non-voting shares, none issued and outstanding Common stock, par value $1.00 per share, authorized 175,000,000 shares; issued and outstanding 106, 742,082 shares as of October 31, 2019 and 105,600,652 shares as of October 31, 2018 Retained earnings Accumulated other comprehensive loss Total stockholders' equity Total liabilities and stockholders' equity The financial statements should be read in conjunction with the Notes to Consolidated Financial Statements 79,914 319,230 256,575 96,604 103,417 76,862 11,164 9,903 59,876 756,970 620,899 50,579 42,521 76,214 89.450 50,850 7,909 7,249 44,388 532,635 312,549 1,397 55,487 106,742 784,885 (32,049) 859,578 2,330,547 105,601 587,252 (23.937) 668,916 1,570,984 S S