S12-7 (similar to) The Colvin 2018 income statement and balance sheet follows (Click the icon to view the assets section of the balance sheet) Data Table (Click the icon to view the liabilities and stockholders' equity sections of the balance sheet) Read the requirements Colvin Corporation Balance Sheet (Adpated) December 31, 2018 and 2017 a. Use the income statement and the balance sheet to calculate Colvin's rate of inventory turnover and days' inventory outstanding for 2018 Begin by selecting the formula and then enter the amounts to calculate inventory turnover. (Enter currency amounts in millions as given in the question. Round the inventory turnover to two Increase (Decrease) Amount Percentage = Inventory turnover 2018 - 2017 Data Table (Dollar amounts in millions) Liabilities and Stockholders' Equity Current liabilities: Accounts payable Income tax payable 0 Requirements $ 920 $ 900 $ 20 2.2 % 44 64 (20) (313) 90 60 66.7 Short-term debt 150 55 60 (5) (8.3) 2017 Other 1.169 1,114 55 4.9 9,300 5,200 97.4 Colvin Corporation Statements of Income (Adapted) Year Ended December 31, 2018 and 2017 (Dollar amounts in millions) 2018 Net revenues S 9,840 $ 4.095 Cost of goods sold Gross profit 5,745 3,500 General and administrative expenses Income from operations 2,245 449 Interest expense, net Income before income taxes 1.796 Total current liabilities Long-term debt Other liabilities 6.111 1.150 3,096 1,050 Use the income statement and the balance sheet to calculate the following: a. Colvin's rate of inventory turnover and days' inventory outstanding for 2018 b. Days' sales in average receivables (days' sales outstanding) during 2018 (round dollar amounts to one decimal place). Assume all sales are made on account c. Accounts payable turnover and days' payables outstanding for 2018. 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 2018 Do these measures look strong or weak? Give the reason for your answer 3,015 100 9.5 4.100 3.700 8,430 5,260 3,170 60.3 Total liabilities 400 160 Stockholders' equity: Common stock 2 2 (5.2) Retained earnings 240 210 1,526 (210) 1610 (220) (84) 10 4.5 1,304 Accumulated other comprehensive (loss) Provision for income taxes 1,318 1,392 (74) (5.3) Print Done S 492 $ 30 Total stockholders' equity Net income $ 9.748 5 6,652 $ 3,096 46.5 % Total liabilities and stockholders' equity Print Done Print Done Choose from any list or enter any number in the input fields and then click Check Answ Clear All S12-7 (similar to) The Colvin 2018 income statement and balance sheet follows (Click the icon to view the assets section of the balance sheet) Data Table (Click the icon to view the liabilities and stockholders' equity sections of the balance sheet) Read the requirements Colvin Corporation Balance Sheet (Adpated) December 31, 2018 and 2017 a. Use the income statement and the balance sheet to calculate Colvin's rate of inventory turnover and days' inventory outstanding for 2018 Begin by selecting the formula and then enter the amounts to calculate inventory turnover. (Enter currency amounts in millions as given in the question. Round the inventory turnover to two Increase (Decrease) Amount Percentage = Inventory turnover 2018 - 2017 Data Table (Dollar amounts in millions) Liabilities and Stockholders' Equity Current liabilities: Accounts payable Income tax payable 0 Requirements $ 920 $ 900 $ 20 2.2 % 44 64 (20) (313) 90 60 66.7 Short-term debt 150 55 60 (5) (8.3) 2017 Other 1.169 1,114 55 4.9 9,300 5,200 97.4 Colvin Corporation Statements of Income (Adapted) Year Ended December 31, 2018 and 2017 (Dollar amounts in millions) 2018 Net revenues S 9,840 $ 4.095 Cost of goods sold Gross profit 5,745 3,500 General and administrative expenses Income from operations 2,245 449 Interest expense, net Income before income taxes 1.796 Total current liabilities Long-term debt Other liabilities 6.111 1.150 3,096 1,050 Use the income statement and the balance sheet to calculate the following: a. Colvin's rate of inventory turnover and days' inventory outstanding for 2018 b. Days' sales in average receivables (days' sales outstanding) during 2018 (round dollar amounts to one decimal place). Assume all sales are made on account c. Accounts payable turnover and days' payables outstanding for 2018. 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 2018 Do these measures look strong or weak? Give the reason for your answer 3,015 100 9.5 4.100 3.700 8,430 5,260 3,170 60.3 Total liabilities 400 160 Stockholders' equity: Common stock 2 2 (5.2) Retained earnings 240 210 1,526 (210) 1610 (220) (84) 10 4.5 1,304 Accumulated other comprehensive (loss) Provision for income taxes 1,318 1,392 (74) (5.3) Print Done S 492 $ 30 Total stockholders' equity Net income $ 9.748 5 6,652 $ 3,096 46.5 % Total liabilities and stockholders' equity Print Done Print Done Choose from any list or enter any number in the input fields and then click Check Answ Clear All