Cintas designs, manufactures, and implements corporate identity uniform programs that it rents or sells to customers throughout the United States and Canada. The company’s stock is traded on the NASDAQ and has provided investors with significant returns over the past few years. Selected information from the company’s balance sheet follows. For 2012, the company reported sales revenue of $3,707,900 and cost of goods sold of $1,517,415. CINTASBalance Sheet(in thousands)CashMarketable securitiesAccounts receivableInventoriesPrepaid expense and otherAccounts payableAccrued compensation and relatedliabilitiesAccrued liabilitiesAccrued tax liabilityLong-term debt due within one year2012$35,379408,889231,74915,78664,62670,782263,5192,5684,1432011$38,927202,543389,909198,01815,78671,64195,370239,07626,659 Required:Compute the current ratio, inventory turnover ratio, and accounts receivable turnoverratio (assuming that 70 percent of sales were on credit). (Round your answers to 1decimal place.)Current ratioInventory turnover ratioAccounts receivable turnover ratio

Financial Ratios are a means of analyzing the financial position and the performance of the company.…

Answered: CINTAS Balance Sheet (in thousands)…

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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Cintas designs, manufactures, and implements corporate identity uniform programs that it rents or sells to customers throughout the United States and Canada. The company’s stock is traded on the NASDAQ and has provided investors with significant returns over the past few years. Selected information from the company’s balance sheet follows. For 2012, the company reported sales revenue of $3,707,900 and cost of goods sold of $1,517,415.

CINTAS
Balance Sheet
(in thousands)
Cash
Marketable securities
Accounts receivable
Inventories
Prepaid expense and other
Accounts payable
Accrued compensation and related
liabilities
Accrued liabilities
Accrued tax liability
Long-term debt due within one year
2012
$35,379
408,889
231,749
15,786
64,626
70,782
263,519
2,568
4,143
2011
$38,927
202,543
389,909
198,018
15,786
71,641
95,370
239,076
26,659

Required:
Compute the current ratio, inventory turnover ratio, and accounts receivable turnover
ratio (assuming that 70 percent of sales were on credit). (Round your answers to 1
decimal place.)
Current ratio
Inventory turnover ratio
Accounts receivable turnover ratio

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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