Homework Help is Here – Start Your Trial Now!
Business
Accounting
"Canadian National Railway" Annual Report 2017 and 2016

"Canadian National Railway" Annual Report 2017 and 2016

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

"Canadian National Railway" Annual Report 2017 and 2016

a) Discuss each of the ratios for two years and explain their implications for the company by using graphs, charts in your analysis.

R Profit margin=(Net income/Revenue)*100 2017 2016 (5484/13041)*100 3640/12037)*100 fixed asset turnover=net sales/average fixed asset 2017 2016 42.05 30.24 13041 12037/34950 (35439+34950)/2 Return on assets=Net income/Total asset 0.37 5484/37629 3640/37057 0.34 0.15 Total asset turnover-net sales/average total asset 0.10 13041 12037/37057 Return on equity=Net income/Shareholder's equity 5484/16656 (37629+37057)/2 3640/14841 10 0.35 0.32 0.33 0.25 11 Current Asset=Current asset/current liability 12 Receivable turnover-Net credit sales/average receivable 2190/3793 2107/3008 (36.225*365) (33.436*365)/875 (984+875)/2 13 0.58 0.70 14 14.22 13.95 Quick Ratio=(current asset-inventory)current liability (2190-424)/3793 (2107-363)/3008 15 16 0.47 0.58 Avg collection period=Avg account receivable/avg credit sales per day 17 (984+875)/36.225 875/33.436 Debt total asset-DTotal debt/total asset 10828/37629 10937/37057 18 27.16 26.17 0.29 0.30 19 20 Inventory turnover=net sales/average inventory 13041 12037/363 Times interest earned=Interest before interest & taxes/Interest 5558/481 5312/480 21 (424+363)/2 11.56 11.07 22 33.14 33.16 23 Fixed charge coverage=income before fixed charges & taxes/fixed charges 5089/964 4927/776 24 Note-for 2016 opening data is not given so its considered as 0 for calculating average. 5.28 6.35 25
Transcribed Image Text:R Profit margin=(Net income/Revenue)*100 2017 2016 (5484/13041)*100 3640/12037)*100 fixed asset turnover=net sales/average fixed asset 2017 2016 42.05 30.24 13041 12037/34950 (35439+34950)/2 Return on assets=Net income/Total asset 0.37 5484/37629 3640/37057 0.34 0.15 Total asset turnover-net sales/average total asset 0.10 13041 12037/37057 Return on equity=Net income/Shareholder's equity 5484/16656 (37629+37057)/2 3640/14841 10 0.35 0.32 0.33 0.25 11 Current Asset=Current asset/current liability 12 Receivable turnover-Net credit sales/average receivable 2190/3793 2107/3008 (36.225*365) (33.436*365)/875 (984+875)/2 13 0.58 0.70 14 14.22 13.95 Quick Ratio=(current asset-inventory)current liability (2190-424)/3793 (2107-363)/3008 15 16 0.47 0.58 Avg collection period=Avg account receivable/avg credit sales per day 17 (984+875)/36.225 875/33.436 Debt total asset-DTotal debt/total asset 10828/37629 10937/37057 18 27.16 26.17 0.29 0.30 19 20 Inventory turnover=net sales/average inventory 13041 12037/363 Times interest earned=Interest before interest & taxes/Interest 5558/481 5312/480 21 (424+363)/2 11.56 11.07 22 33.14 33.16 23 Fixed charge coverage=income before fixed charges & taxes/fixed charges 5089/964 4927/776 24 Note-for 2016 opening data is not given so its considered as 0 for calculating average. 5.28 6.35 25
Railroud Statisties Canadian National Railway7 Data in million ($) 2016 2012 Net income 5,484 3,640 Total sales Revenues 13,041 1293又 Total assets 33,629 → タ3,05又 Stockholdery equity >14,841 > 16,656 - A cCounts receivable > 825 984 -> Ang. daily credit sales >36.225 >33.436 Inventory 7363 424 Fixed assets » 35,439 ラ 34950 Currend assets >2,190 2,102 Curnent liabilities → 3,ヌ88 73,008 Total debt 10,828 → 10,93ス Ineome before interest 5,558 5,312 and taxes 481 480 Interest Income befne fixed 5,089 > 492又 Charges and taxes Fixed Chorges 964 ラヌヌ6
Transcribed Image Text:Railroud Statisties Canadian National Railway7 Data in million ($) 2016 2012 Net income 5,484 3,640 Total sales Revenues 13,041 1293又 Total assets 33,629 → タ3,05又 Stockholdery equity >14,841 > 16,656 - A cCounts receivable > 825 984 -> Ang. daily credit sales >36.225 >33.436 Inventory 7363 424 Fixed assets » 35,439 ラ 34950 Currend assets >2,190 2,102 Curnent liabilities → 3,ヌ88 73,008 Total debt 10,828 → 10,93ス Ineome before interest 5,558 5,312 and taxes 481 480 Interest Income befne fixed 5,089 > 492又 Charges and taxes Fixed Chorges 964 ラヌヌ6
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Income Statement Analysis
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
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS