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1. Compute the common-size balance sheet for 2010 and the rate of change balance sheet for 2010. 2. Compute the following ratios for 2010. a. Return on common equity b. Debt-to-assets c. Debt-to equity

1. Compute the common-size balance sheet for 2010 and the rate of change balance sheet for 2010. 2. Compute the following ratios for 2010. a. Return on common equity b. Debt-to-assets c. Debt-to equity

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hello!

I have been tasked with a finanancial analysis for my accounting class, I need to complete the first two questions before I can procede and I would like to know if my findings are correct. 

If you could please answer these same questions, I would greately appreciate it. 

Thank you in advance!!

Hershey: Consolidated Balance Sheets (millions) 2009 2010 Assets Current Assets $ 884.6 Cash and Equivalents Accounts Receivable, Trade Inventories Deferred Income Taxes Prepaid Expenses and Other Assets Total Current Assets Property, Plant, and Equipment, net Goodwill and Intangible Assets Other Intangible Assets Deferred Income Taxes and Other Assets Total Assets $ 253.6 410.4 390.1 519.7 39.9 533.6 55.8 161.8 1,385.4 1,404.8 571.6 141.1 2,005.2 1,437.7 524.1 123.1 182.6 $4,272.7 125.5 187.7 $3,675.0 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $410.7 $ 287.9 583.4 24.1 Accrued Liabilities and Taxes Short-Term Debt Current Portion of Long-Term Debt Total Current Liabilities Long-Term Debt Other Long-Term Liabilities 602.7 24.1 15.2 910.6 1,502.7 501.4 261.4 1,298.9 1,541.8 494.4 3,335.1 Total Liabilities Shareholders' Equity Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Noncontrolling Interests Total Shareholders' Equity Total Liabilities and Shareholders' Equity 2,914.7 359.9 359.9 394.7 4,148.3 (3,979.6) (202.9) 39.9 760.3 434.9 4,374.7 (4,052.1) (215.1) 35.3 937.6 $3,675.0 $4,272.7 $5,671.0 $3,255.8 $ 509.8 Additional information for 2010: Total sales Costs of goods sold Net income
Transcribed Image Text:Hershey: Consolidated Balance Sheets (millions) 2009 2010 Assets Current Assets $ 884.6 Cash and Equivalents Accounts Receivable, Trade Inventories Deferred Income Taxes Prepaid Expenses and Other Assets Total Current Assets Property, Plant, and Equipment, net Goodwill and Intangible Assets Other Intangible Assets Deferred Income Taxes and Other Assets Total Assets $ 253.6 410.4 390.1 519.7 39.9 533.6 55.8 161.8 1,385.4 1,404.8 571.6 141.1 2,005.2 1,437.7 524.1 123.1 182.6 $4,272.7 125.5 187.7 $3,675.0 Liabilities and Shareholders' Equity Current Liabilities Accounts Payable $410.7 $ 287.9 583.4 24.1 Accrued Liabilities and Taxes Short-Term Debt Current Portion of Long-Term Debt Total Current Liabilities Long-Term Debt Other Long-Term Liabilities 602.7 24.1 15.2 910.6 1,502.7 501.4 261.4 1,298.9 1,541.8 494.4 3,335.1 Total Liabilities Shareholders' Equity Common Stock Additional Paid-In Capital Retained Earnings Treasury Stock Accumulated Other Comprehensive Loss Noncontrolling Interests Total Shareholders' Equity Total Liabilities and Shareholders' Equity 2,914.7 359.9 359.9 394.7 4,148.3 (3,979.6) (202.9) 39.9 760.3 434.9 4,374.7 (4,052.1) (215.1) 35.3 937.6 $3,675.0 $4,272.7 $5,671.0 $3,255.8 $ 509.8 Additional information for 2010: Total sales Costs of goods sold Net income
1. Compute the common-size balance sheet for 2010 and the rate of change balance sheet for 2010. 2. Compute the following ratios for 2010. a. Return on common equity b. Debt-to-assets c. Debt-to equity d. Current e. Quick f. Inventory turnover days g. Accounts receivable turnover days h. Accounts payable turnover days i. Operating cycle (in days) j. Total asset turnover
Transcribed Image Text:1. Compute the common-size balance sheet for 2010 and the rate of change balance sheet for 2010. 2. Compute the following ratios for 2010. a. Return on common equity b. Debt-to-assets c. Debt-to equity d. Current e. Quick f. Inventory turnover days g. Accounts receivable turnover days h. Accounts payable turnover days i. Operating cycle (in days) j. Total asset turnover
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