Please do all parts: a, b, c and d

S13-7 (similar to) Question The financial statements of Allstott, Inc., follow: (Click the icon to view the assets section of the balance sheet.) (Click the icon to view the liabilities and stockholders' equity sections of the balance sheet.) (Click the icon to view the income statement.) Read the requirements a. Use the Allstott 2016 income statement and the balance sheet to compute Allstott Inc.'s rate of inventory turnover and days' inventory outstanding for 2016 Begin by selecting the formula and then enter the amounts to calculate inventory turnover. Requirements Inventory turnover Use the Allstott 2016 income statement and the balance sheet to compute the following a. Allstott Inc.'s rate of inventory turnover and days' inventory outstanding for 2016. b. Days' sales in average receivables (days' sales outstanding) during 2016 (round dollar amounts to one decimal place). Assume all sales are made on account c. Accounts payable turnover and days' payables outstanding for 2016. For this purpose, assume that the impact of inventories on cost of goods sold is immaterial, allowing you to use cost of goods sold rather than purchases in your computations. d. Length of cash conversion cycle in days for 2016 Do these measures look strong or weak? Give the reason for your answer. Print Done Data Table Allstott, Inc. Balance Sheets (Adapted) December 31, 2016 and 2015 Increase (Decrease) Amount Percentage (Dollar amounts in millions) 2016 2015 Assets Current assets: Cash and cash equivalents Short-term investments Receivables, net Inventories Prepaid expenses and other assets 1,200 $ 960 $ 240 25.0 % 70 252 84 (64) (91.4) (12) 4.8) 21.4 372(168) (45.2) 6 240 102 204 1,752 3,622 1,080 832 18 Total current assets Property, plant, and equipment, net Intangible assets Other assets 276 232 102 7,286 $ 6,662 624 1,738 3,346 848 730 0.8 8.2 27.4 14.0 Total assets 9.4 % Data Table (Dollar amounts in millions) 2016 2015 Amount Percentage Liabilities and Stockholders' Equity Current liabilities: Accounts payable Income tax payable Short-term debt Other 942 $ 848 $ 94 11.1 % 32 122 62 1,158 3,604 1,128 5,890 68 104 64 1,084 3,080 1,026 5,190 (36) (52.9) 18 17.3 74 Total current liabilities Long-term debt Other liabilities 6.8 17.0 9.9 13.5 524 102 Total liabilities Stockholders' equity: Common stock Retained earnings Accumulated other comprehensive (loss) 700 2 1,556 (162) 1,396 2 1,640 (170) 1,472 7,286 $ 6,662 624 4.7 Total stockholders' equity (76) (5.2) Total liabilities and stockholders' equity 9.4% Data Table Allstott, Inc. Statements of Income (Adapted) Year Ended December 31, 2016 and 2015 (Dollar amounts in millions) 2016 2015 9,502 $ 9,379 Revenues Expenses: 2,460 2,129 2,423 1,217 23 1,250 184 1,066 386 2,638 2,221 2,355 1,155 (29) 1,039 107 932 267 665 Food and paper (Cost of goods sold) Payroll and employee benefits Occupancy and other operating expenses General and administrative expenses Other operating expense (income), net Income from operations Interest expense Income before income taxes Income tax expense Net income 680 $