This problem is based on the 2017 annual report of Campbell Soup Company. price Required: a. Compute the following profitability measures for the year ended July 30, 2017 (Dividends declared were $1.40 per common share): 1. Return on investment, based on net earnings (perform a DuPont analysis). 2. Return on equity, based on net earnings and total equity. 3. Pricelearnings ratio. Use $52.85 as the year-end market price. 4. Dividend yield. Use $52.85 as the year-end market price. 5. Dividend payout ratio. b. Compute the following liquidity measures at July 30, 2017: 1. Working capital 2. Current ratio. 3. Acid-test ratio c. Compute the following activity measures for the year ended July 30, 2017 1. Number of days' sales in accounts receivable, based on a 365-day year. 2. Number of days' sales in inventory, based on a 365-day year. 3. Accounts receivable turnover. 4. Inventory turnover. 5. Turnover of net property, plant, and equipment. d. Compute the following financial leverage measures at July 30, 2017 1. Debt ratio. 2. Debt/equity ratio. e. Compute the following physical measures of Campbell's profitability at July 30, 2017: (Note: In a page not reproduced in the appendix, Campbell's 2017 annual report disclosed that on July 30, 2017, the company had approximately 18,000 employees.) 1. Net sales per employee. 2. Operating income per employee. 2012 Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Compute the following profitability measures for the year ended July 30, 2017 (Dividends declared were $1.40 per common share): 1. Return on investment, based on net earnings (perform a DuPont analysis). (Do not round your intermediate calculations.) 2. Return on equity, based on net earnings and total equity. 3. Price/earnings ratio. Use $52.85 as the year-end market price. 4. Dividend yield. Use $52.85 as the year-end market price. 5. Dividend payout ratio. (Round your answers to 1 decimal place.) Show less % 1. ROI 2. ROE 3. Pricelearnings ratio 4. Dividend yield 5. Dividend payout ratio Required B Help Save & Exit appendix. Campbell's 2017 annual report disclosed that on July 30, 2017, the company had approximately 18,000 employees. 1. Net sales per employee. 2. Operating income per employee. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Compute the following liquidity measures at July 30, 2017: 1. Working capital. (Enter your answers in millions (ie., 5,000,000 should be entered as 5).) 2. Current ratio. (Round your answer to 2 decimal places.) 3. Acid-test ratio. (Round your answer to 2 decimal places.) Show less million 1. Working capital 2. Current ratio 3 Acid-test ratio Required A Required > Prey 39 of 39 11 appendix, Campbell's 2017 annual report disclosed that on July 30, 2017, the company had approximately 18,000 employees.) 1. Net sales per employee. 2. Operating income per employee. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Compute the following activity measures for the year ended July 30, 2017: 1. Number of days' sales in accounts receivable, based on a 365-day year. 2. Number of days' sales in inventory, based on a 365-day year. 3. Accounts receivable turnover. 4. Inventory turnover. 5. Turnover of net property, plant, and equipment. (Do not round your intermediate calculations. Round your answers to 1 decimal place.) Show less days days 1. Number of days' sales 2. Number of days' sales 3. Accounts receivable turnover 4. Inventory tumover 5. Turnover times times times e. Compute the following physical measures of Campbell's profitability at July 30, 2017: (Note: In a page not reproduced in th appendix, Campbell's 2017 annual report disclosed that on July 30, 2017, the company had approximately 18,000 employe 1. Net sales per employee. 2. Operating income per employee. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Compute the following financial leverage measures at July 30, 2017: 1. Debt ratio 2. Debt/Equity ratio. (Round your answers to 1 decimal place.) Show less 1. Debt ratio 2. Debt/equity ratio appendix, Campbell's 2017 annual report disclosed that on July 30, 2017, the company had approximately 18,000 employ 1. Net sales per employee. 2. Operating income per employee. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Compute the following physical measures of Campbell's profitability at July 30, 2017: (Note: In a page not reproduced in the appendix, Campbell's 2017 annual report disclosed that on July 30, 2017, the company had approximately 18,000 employees.) 1. Net sales per employee. 2. Operating income per employee. (Enter your answers in dollars. Round your answers to the nearest whole number.) Show less 1. Net sales 2. Operating income per employee per employee Required D -media mhed IN MEROOBOO OOONNOM CAMPBELL SOUP COMPANY Consolidated Balance Sheets (millions, except per share amounts) $ 296 : : .... 319 605 902 902 74 1,900 2.454 2.115 1.118 1.39 626 940 46 1,908 2,407 2,263 1.152 107 7837 7,726 $ $ . 1.219 Current assets Cash and cash equivalents .... . . .. . Accounts receivable, net Inventories .. ** ... Other current assets ............... Total current assets............................... Plant assets, net of depreciation ............. Goodwill Other intangible assets, net of amortization...... .... Other assets ($51 as of 2017 and $34 as of 2016 attributable to Total assets.................................. Current liabilities Short-term borrowings... Payable to suppliers and others.. Accrued liabilities... Dividends payable ............... Accrued income taxes.......... Total current liabilities. ... Long-term debt...... Deferred taxes Other liabilities......................................... . Total liabilities Commitments and contingencies Campbell Soup Company shareholders' equity Preferred stock, authorized 40 shares, none issued... .. ..... . Capital stock, 50375 par value authorized 500 shares, issued 323 shares Additional paid in capital........ Earnings retained in the business Cantal stock in treasury at cost 1,037 666 561 100 20 2.395 2,499 2.555 . 2314 490 396 .. 607 1.039 6304 .081 359 2.355 (1.066) 354 1.927 (664) 940 902 74 1,900 2,454 2,115 1.118 1,908 2,407 2,263 1.152 107 7,837 139 7,726 $ 1,219 1,037 666 561 Inventories. . ............. .------- - Other current assets ................................................. ..... Total current assets........ ................................ . Plant assets, net of depreciation.............. Goodwill............ Other intangible assets, net of amortization Other assets ($51 as of 2017 and $34 as of 2016 attributable to variable interest entity) Total assets............. Current liabilities Short-term borrowings...... Payable to suppliers and others Accrued liabilities Dividends payable Accrued income taxes ... Total current liabilities. Long-term debt Deferred taxes..... Other liabilities... Total liabilities....... Commitments and contingencies Campbell Soup Company shareholders' equity Preferred stock, authorized 40 shares, none issued... Capital stock, $.0375 par value, authorized 560 shares, issued 323 shares Additional paid-in capital........ Earnings retained in the business Capital stock in treasury, at cost. Accumulated other comprehensive loss Total Campbell Soup Company shareholders' equity Noncontrolling interests. Total equity. Total liabilities and equity 2,395 2,499 490 396 697 6,0816 1,039 ,304 359 2,385 (1,066) (53) 354 1.927 (664) (104) 1.525 1.637 1.646 1.533 S 7.726 S 2837 See accompanying Notes to Consolidated Financial Statements Item 6. Selected Financial Data 201701 2016 2015 2014 2013 $7,890 1,400 1,293 887 $7.961 $8,082 $8,268 1,054 1.267 949 1.148 666 774 $8,052 1,474 1,349 934 (231) 81 887 703 666 666 855 866 887 712 Fiscal Year (Millions, except per share amounts) Summary of Operations Net sales... Earnings before interest and taxes Earnings before taxes..... Earnings from continuing operations Earnings (loss) from discontinued operations Net earnings .... Net earnings attributable to Campbell Soup Company Financial Position Plant assets - net... Total assets Total debt Total equity Per Share Data Earnings from continuing operations attributable to Campbell Soup Company - basic......... .. Earnings from continuing operations attributable to Campbell Soup Company - assuming dilution.... Net earnings attributable to Campbell Soup Company - basic Net earnings attributable to Campbell Soup Company - assuming dilution Dividends declared Other Statistics Capital expenditures. ... Weighted average shares outstanding - basic... Weighted average shares outstanding - assuming dilution $2,454 7,726 3,536 1,645 $2,407 $2,347 7,837 8,077 3,533 4,082 1,533 1.377 $2,318 8,100 4,003 1,602 $2,260 8,290 4,438 1.192 S 2.91 $ 1.82 $ 2.13 $ 2.50 $ 3.00 2.89 2.91 1.81 1.82 2.13 2.13 2.48 2.76 2.97 2.27 2.89 1.40 1.81 1.248 2.13 1.248 2.74 1.248 2.25 1.16 S 338 $ 341 $ 380 305 309 312 307 311 313 $ 347 $ 336 314 314 316 317 (All per share amounts below are on a diluted basis) In March 2016, the Financial Accounting Standards Board (FASB) issued muidance that amends accounting for share-based Ramontsumgluding the contingumcome.confitendstawwith oldm o ments as well as classification In April 2015, the FASB issued guidance that requires debt issuance costs to be presented in the balance sheet as a reduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. We adopted the guidance in 2016 and retrospectively adjusted all prior periods. In November 2015, the FASB issued guidance that requires deferred tax liabilities and assets to be classified as noncurrent in the balance sheet. We adopted the guidance in 2016 on a prospective basis and modified the presentation of deferred taxes in the Consolidated Balance Sheet as of July 31, 2016. The 2014 fiscal year consisted of 53 weeks. All other periods had 52 weeks. The 2017 earnings from continuing operations attributable to Campbell Soup Company were impacted by the following: a restructuring charge, related costs and administrative expenses of $37 million (S. 12 per share) associated with restructuring and cost savings initiatives, pains of $116 million (S.38 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans, impairment charges of $180 million (5.59 per share) related to the intangible assets of the Bolthouse Farms carrot and carrot ingredients reporting unit and the Garden Fresh Gourmet reporting unit, and a tax benefit and reduction to interest expense of $56 million ($. 18 per share) primarily associated with the sale of intercompany notes receivable to a financial institution The 2016 earnings from continuing operations attributable to Campbell Soup Company were impacted by the following: a restructuring charge and administrative expenses of $49 million ($ 16 per share) associated with restructuring and cost savings initiatives; losses of $200 million (5.64 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans, a gain of $25 million ($ 08 per share) associated with a settlement of a claim related to the Kelsen acquisition and an impairment charge of S127 million (S.41 per share) related to the intangible assets of the Bolthouse Farms carrot and carrot ingredients reporting unit The 2015 earnings from continuing operations attributable to Campbell Soup Company were impacted by the following a restructuring charge and administrative expenses of $78 million (S 25 per share) associated with restructuring and cost savings initiatives and losses of $87 million (S.28 per share associated with mark-to-market adjustments for defined benefit pension and postretirement plans. The 2014 earnings from continuing operations attributable to Campbell Soup Company were impacted by the following: a restructuring charge and related costs of $36 million (S. 11 per share) associated with restructuring initiatives, losses of $19 million (5.06 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans, a loss of $6 million (5.02 per share) on foreign exchange forward contracts used to hedge the proceeds from the sale of the European simple meals business, $7 million (S 02 per share) tax expense associated with the sale of the European simple meals business, and the estimated impact of the additional week of $25 million (5.08 per share) Earnings from discontinued operations included a gain of S72 million (5.23 per share) on the sale of the European simple meals business The 2013 earnings from continuing operations attributable to Campbell Soup Company were impacted by the following a restructuring charge and related costs of $87 million (5.27 per share) associated with restructuring initiatives, gains of $183 million (S.58 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans and $7 million ($.02 per share) of transaction costs related to the acquisition of Bolthouse Farms. Earnings from discontinued operations were impacted by an impairment charge on the intangible assets of the simple meals business million (5 83 per share) and tax expense of $18 million (5.06 per share) representing taxes on the difference between the book value and tax basis of the business