Use the Income Statement and Balance Sheet to calculate the most important 2014 working capital ratios.

Hampton Bay

2013 and 2014 Balance Sheets

($ in millions)

2013 2014

Current Assets

Cash $74 $98

accounts receiveable 165 178

inventory 393 422

total 632 698

fixed assets

net plant and equpment 2731 2880

total assets 3363 3578

Current liabilities

Accounts payable 312 344

notes payable 231 196

total 543 540

long term debt 531 457

owners equity

common stock and

paid in surplus 500 550

retained earnings 1799 2041

total 2299 2591

total liabilities and equity 3373 3588

Hampton Bay

2014 Income statement

Sales $2311

Cost of Goods sold $1244

Depreciation $276

Earnnings before

interest and taxes $791

Interest paid $141

Taxable income $650

taxes $187

net income $463

Dividends $121

additions to retained

earnings $342

f) Payables Turnover (use average accounts payable)

g) Average Collection Period (in days) (Also called Receivables Period or Days Sales in Receivables)

h) Inventory Period

i) Payables Period

j) Operating Cycle

k) Cash Cycle

l) Return on Equity

m) Cash Collections from Customers

n) Cash Paid to Suppliers