a. compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017. b. what changes are evident in the turnover rates of 3M for these years? Discuss ways in which a company such as 3M can improve its turnover within each of these three areas

a. compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017. b. what changes are evident in the turnover rates of 3M for these years? Discuss ways in which a company such as 3M can improve its turnover within each of these three areas

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Hello can I find the Total asset turnover ratio, Fixed asset turnover ratio, Receivables turnover…

A: The ratio refers to establishing a relationship between two variables. Under accounting, the ratio…

Q: Using the fiscal year end 2019 annual report for General Mills, Inc. and the figures from the 2017…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: For the companies Lockheed-Martin (LMT) & Northrop-Grumman (NOC) Use Macrotrends data to calculate…

A: I find no data in attached link. Please give me the full data or just follow the steps provided to…

Q: alculate ratios related to how quickly the company pays its trade debt and how quickly it collects…

A: Financial ratios are very important in determining the performance of company and compare…

Q: The following financial information is for Cullumber Company. CULLUMBER COMPANY Balance Sheets…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Sunland Manufacturing has provided the following comparative income statements for 2021 and 2022.…

A: Common Size Analysis is also known as Vertical analysis. Common Size analysis mainly refers to the…

Q: Using the fiscal year end 2020 annual report for General Mills, Inc. and the figures from the 2020…

A: Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational…

Q: Using the information below to answer the following parts A and B. Round to 2 decimal places.…

A: The following calculations are done to evaluate the change in asset turnover of the company in a…

Q: Competitors Average Net profit margin Current Acid test ratio Gross Accounts receivable Accounts…

Q: What is the amount of working capital and the current ratio at the end of this year? What is the…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: Cash Accounts receivable (net) Other current assets Investments Plant and equipment (net) 1. NOVAK…

A: The ratio is the technique used by the prospective investor or an individual or strategist to read…

Q: Current Assets Cash Accounts Receivable Inventory Total Current Assets Fixed Assets Assets (SM) Net…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: this would represent an example of what type of analysis:

A: Financial statements: It refers to the end reports prepared by n organization to report the…

Q: For each ratio listed, identify whether the change in ratio value from the Prior Year to the Current…

A: Ratio Analysis -The ratio is the technique used by the prospective investor or an individual or…

Q: Search online for Tesla’s Annual Report for fiscal year 2020 that ended on December 31, 2020. Answer…

A: Ratios help analyse how the company is performing. They help investors get valuable insights about…

Q: Income statement and balance sheet data for The Athletic Attic are provided below.Required: 1.…

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: You have been hired as a financial analyst of a firm and your team is working on an independent…

A: A ratio analysis is a study of line items in a company's financial statements. Ratio analysis is…

Q: Abbott Laboratories’ Consolidated Statements of Earnings for the 3 fiscal year’s ending December 31,…

A: Gross margin (%): 2017: Gross margin=Net sales-cost of products soldNet…

Q: A Company has Net Sales of 2,000,000 for 2020, Accounts Recitable for 500,000 in 2020, and Accounts…

A: Formulae Average collection period=days in period*Average Accounts receivables/Average credit…

Q: Comment on the changes between these two years. More specifically, how do the changes in total…

A: The changes in asset turnover ratio depict the decline in the company’s efficiency and it’s…

Q: 1 Revenues 2 Product revenues 3 Service revenues 4 Total revenues 5 6 Product cost of revenues 7…

A: Budgeted financial statements are projected financial statements that provide estimates of a…

Question

a. compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017.
b. what changes are evident in the turnover rates of 3M for these years? Discuss ways in which a company such as 3M can improve its turnover within each of these three areas

($ millions)
Sales
Cost of Sales
Receivables
Inventories
PPE, net
$32,765
$16,682
$4,366
$5,020
4,911
$8,738
8,866
8,516
2018.
..... ...
2017.
31,657
16,055
4,034
2016..
30,109
15,118
4,392
3,385

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

provide reasons for the attached calculated ratios using GSK 2023 annual report and provide non-financail performance analysis examples for GSK 2023.
Examine the selected data over the 5-year period as shown in the table below for Dumbledore Ltd. Item Sales Cost of sales EBIT Interest NPAT Current assets Total assets current liabilities Total liabilities Equity Gross margin Interest coverage Current ratio 2021 $m 286.41 180.03 51.18 37.07 35.13 43.85 226.18 55.99 98.99 127.19 0.37 1.38 0.78 Year 2020 $m 280.80 166.69 51.08 33.70 35.10 43.20 221.75 53.58 91.66 130.09 0.41 1.52 0.81 2019 $m 275.29 154.35 50.98 30.64 35.06 42.56 217.40 51.27 84.87 132.53 0.44 1.66 0.89 2018 $m 269.89 142.91 50.88 27.85 35.03 41.93 213.13 49.06 78.58 134.56 0.47 1.83 U.OJ 2017 $m 264.60 134.19 49.88 25.32 34.51 41.31 206.93 47.40 74.48 132.44 0.49 1.97 0.87 2016 $m 252.00 126.00 48.90 24.00 34.00 40.70 200.90 45.80 70.60 130.30 0.50 2.04 0.89
The following selected information is for H55 Corporation: Total assets Total shareholders' equity Sales Cost of goods sold Net income. H55 had no preferred shares. ype here to search 2021 $357,000 $285,000 136.000 503.000 378.759 2020 32.695 97,500 394,000 276.982 29.944 2019 $267,000 48,500 297.000 181,000 20,400
please anwer all the questions i have mentioned below : - A company has the following items for the fiscal year 2020: Cash = 2 million Marketable securities = 3 million Account receivables (A/R) = 1.5 million Inventories = 8.5 million Total current liabilities = 8 million Calculate the company’s current ratio and quick ratio 2. Write the formula for the following ratios and what each ratio measures: Asset turnover Inventory Turnover and Days Inventory Receivable Collection Period 3. Write down the DuPont framework. How would you explain to your non-MBA non-Finance friend about the DuPont framework and why it is important?
Asset Efficiency Ratios Sammy Inc.'s financial statements for 2023 indicate the following account balances: Net sales Cost of goods sold Average accounts receivable Average inventory Average property, plant, and equipment Average total assets. Required: Round your answers to two decimal places. 1. Using this information, calculate Sammy's receivable turnover ratio. $307,608 170,100 21,329 3,960 85,367 144,140 2. Using this information, calculate Sammy's asset turnover ratio and also convert the ratio into days. Assume 365 days in a year. Round your answer to nearest whole day. Asset turnover ratio Conversion into days days
Please solve the question sub-division b alone.
Perform a liquidity and profitability analysis on your company utilizing the ratios listed below. Quick Ratio, Receivable Turnover, Days sales uncollected, inventory turnover, Days inventory on hand, payable turnover, days payable, asset turnover, return on assets, and return on equity. statement of operations 12 Months Ended Jul. 31, 2020 Jul. 31, 2019 Revenues: Revenues $ 1,497,826,000 $ 1,684,392,000 Costs and expenses: Operating expense - personnel, vehicle, plant and other 493,055,000 468,868,000 Operating expense - equipment lease expense 33,017,000 Equipment lease expense, preadoption 33,073,000 Depreciation and amortization expense 80,481,000 78,846,000 General and administrative expense 45,752,000 59,994,000 Non-cash employee stock ownership plan compensation charge 2,871,000 5,693,000 Asset impairments 0 0 Loss on asset sales and disposals 7,924,000 10,968,000 Operating income 148,670,000 113,028,000 Interest expense…
Using the information below calculate ROA and ROE. Once your calculations are complete, answer the five questions relating to your calculations. Profit Margin Asset Turnover FLR ROA is: Select one: O a. Increasing 2018 4.50% 5.50 1.40 O b. Decreasing O c. Remaining fairly flat 2015 4.70% 4.80% 5.90 6.50 1.40 1.50 2017 2016 4.70% 5.80 1.40 industry 2014 average 5.00% 4.70% 7.00 6.00 1.50 1.50
A) Calculate the following liquidity ratios for 2020. 1. Working capital- 2.Current Ratio- 3. Acid test ratio- 4. Accounts receivable turnover- B) calculate the following liquidity ratios for 2020. 1. Average collection period (in days)- 2. Inventory turnover (in times)- C) calculate the average days to sell inventory for 2020. 1. Average days to sell inventory-
Need the answers in that formats thank you
Compute the following profitability ratios of the company for the most recent two years, show all values in the computations: 1.Asset Turnover 2.Profit margin ratio(Net Income/Net Sales) 3.Return on total assets (Net Income/Average Total Assets) 4.Return on stockholders’ equity 5.Basic Earnings per share (EPS) Based on the results above, what conclusions can you make about the company’s overall profitability and efficient use of assets?
PERFORM A LIQUIDITY AND PROFITABILITY ANALYSIS ON THE FOLLOWING COMPANY UTILIZING THE RATIOS LISTED: PAYABLES TURNOVER DAYS PAYABLE statement of operations 12 Months Ended Jul. 31, 2020 Jul. 31, 2019 Revenues: Revenues $ 1,497,826,000 $ 1,684,392,000 Costs and expenses: Operating expense - personnel, vehicle, plant and other 493,055,000 468,868,000 Operating expense - equipment lease expense 33,017,000 Equipment lease expense, preadoption 33,073,000 Depreciation and amortization expense 80,481,000 78,846,000 General and administrative expense 45,752,000 59,994,000 Non-cash employee stock ownership plan compensation charge 2,871,000 5,693,000 Asset impairments 0 0 Loss on asset sales and disposals 7,924,000 10,968,000 Operating income 148,670,000 113,028,000 Interest expense (192,962,000) (177,619,000) Loss on extinguishment of debt (37,399,000) Other income (expense), net (460,000) 369,000 Loss before income taxes (82,151,000)…