This problem is based on the 2017 annual report of Campbell Soup Company. 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 eamings (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 yleld. Use $52.85 as the year-end market price. 5. Dividend payout ratio. b. Compute the following Ilquidlty measures at July 30,2017 : 1. Working capltal. 2. Current ratio. 3. Acid-test ratio. c. Compute the following actlvity measures for the year ended July 30,2017 : 1. Number of days' sales in accounts recelvable, based on a 365 -day year. 2. Number of days' sales in Inventory, based on a 365 -day year. 3. Accounts recelvable turnover. 4. Inventory turnover. 5. Turnover of net property, plant, and equipment. d. Compute the following financlal leverage measures at July 30, 2017: 1. Debt ratio. 2. Debt/equlty 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. CAMPBELL SOUP COMPANY Consolidated Statements of Earnings (millions, except per share amounts) Financial Statements. CAMPBELL SOUP COMPANY Consolidated Balance Sheets (millions, except per share amounts) 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.) Compute the following liquidity measures at July 30,2017: 1. Working capital. (Enter your answers in millions (i.e., 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.) 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 Compute the following financial leverage measures at July 30, 2017: 1. Debt ratio. 2. Debt/Equity ratio. (Round your answers to 1 decimal place.) 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.) In March 2016, the Financial Accounting Standards Board (FASB) issued guidance that amends accounting for share-based payments, including the accounting for income taxes, forfeitures, and statutory withholding requirements, as well as classification in the statement of cash flows. We adopted the guidance in 2017. In accordance with the prospective adoption of the recognition of excess tax benefits and deficiencies in the Consolidated Statements of Earnings, we recognized a $6 million tax benefit in Taxes on earnings in 2017. 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. (1) 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 (\$.12 per share) associated with restructuring and cost savings initiatives; gains of $116 million ( $.38 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans; impairment charges of $180 million ( $.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. (2) 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 ( $.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 $127 million (\$.41 per share) related to the intangible assets of the Bolthouse Farms carrot and carrot ingredients reporting unit. (3) 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 ( $.25 per share) associated with restructuring and cost savings initiatives and losses of $87 million ( $.28 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans. (4) 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 (\$.11 per share) associated with restructuring initiatives; losses of $19 million (\$.06 per share) associated with mark-to-market adjustments for defined benefit pension and postretirement plans; a loss of $6 million (\$.02 per share) on foreign exchange forward contracts used to hedge the proceeds from the sale of the European simple meals business; \$7 million (\$.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 (\$.08 per share). Earnings from discontinued operations included a gain of $72 million ( $.23 per share) on the sale of the European simple meals business. (5) 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 ( $.27 per share) associated with restructuring initiatives; gains of $183 million (\$.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 in Europe of \$263 million ( $.83 per share) and tax expense of $18 million ( $.06 per share) representing taxes on the difference between the book value and tax basis of the business