How effective is the organization in collecting its receivables? Use the Hillside, Inc. Balance Sheet information in cells A2 through D18 and cells A21 through B38 to complete the Financial Performance Calculations in cells A40 through C60. Table 1: Hillside, Inc. Balance Sheet ($ in Millions) ASSETS LIABILITIES Cash & Marketable Securities 449.90 Accounts Payable 1,611.20 Accounts Receivable 954.80 Salaries Payable 225.20 Inventories 3,645.20 Other Current Liabilities 1,118.80 Other Current Assets 116.60 Total Current Liabilities 2,955.20 Total Current Assets 5,165.27 Other Liabilities 693.40 Machinery & Equipment 1,688.90 Land 1,129.70 Total Liabilities 3,648.60 Buildings 2,348.40 Depreciation (575.60) SHAREHOLDER'S EQUITY Property, Plant & Equip. - Net 4,591.40 Common Stock 828.50 Other Long Term Assets 120.90 Retained Earnings 5,401.70 Total Long-Term Assets 4,712.30 Total Shareholder's Equity 6,230.20 Total Assets 9,877.57 Total Liabilities & Equity 9,878.80 Table 2: Hillside, Inc. Income Statement ($ in Millions) Revenue 28,681.10 Cost Of Goods Sold 20,768.80 Gross Profit 7,912.30 Operating Expenses: Selling, General & Admin. 5,980.80 Depreciation 307.30 Operating income 1,624.20 Interest - Other Expense (Income) (13.10) Income Before Taxes 1,637.30 Income Taxes 618.10 Net Income 1,019.20 Number of Common Stock Shares Outstanding 1,032,271 Table 3: Financial Performance Calculations Liquidity Ratios No data Answers Current Ratio (times) No data 1.75 Quick Ratio (times) No data 0.48 Average Payment Period (days) No data 190.12 Asset Management Ratios No data Total Asset Turnover (times) No data 2.90 Average Collection Period (days) No data 12.15 Inventory Turnover (times) No data 5.70 Financial Leverage Ratios No data Total Debt to Total Assets No data 70.64% Equity Multiplier (times) No data 1.59 Profitability Ratios No data Operating Profit Margin No data 0.06 Net Profit Margin No data 3.55% Return on Total Assets No data 10.32% Return on Equity No data 16.36% Earnings per Share No data 0.99
How effective is the organization in collecting its receivables? Use the Hillside, Inc. Balance Sheet information in cells A2 through D18 and cells A21 through B38 to complete the Financial Performance Calculations in cells A40 through C60. Table 1: Hillside, Inc. Balance Sheet ($ in Millions) ASSETS LIABILITIES Cash & Marketable Securities 449.90 Accounts Payable 1,611.20 Accounts Receivable 954.80 Salaries Payable 225.20 Inventories 3,645.20 Other Current Liabilities 1,118.80 Other Current Assets 116.60 Total Current Liabilities 2,955.20 Total Current Assets 5,165.27 Other Liabilities 693.40 Machinery & Equipment 1,688.90 Land 1,129.70 Total Liabilities 3,648.60 Buildings 2,348.40 Depreciation (575.60) SHAREHOLDER'S EQUITY Property, Plant & Equip. - Net 4,591.40 Common Stock 828.50 Other Long Term Assets 120.90 Retained Earnings 5,401.70 Total Long-Term Assets 4,712.30 Total Shareholder's Equity 6,230.20 Total Assets 9,877.57 Total Liabilities & Equity 9,878.80 Table 2: Hillside, Inc. Income Statement ($ in Millions) Revenue 28,681.10 Cost Of Goods Sold 20,768.80 Gross Profit 7,912.30 Operating Expenses: Selling, General & Admin. 5,980.80 Depreciation 307.30 Operating income 1,624.20 Interest - Other Expense (Income) (13.10) Income Before Taxes 1,637.30 Income Taxes 618.10 Net Income 1,019.20 Number of Common Stock Shares Outstanding 1,032,271 Table 3: Financial Performance Calculations Liquidity Ratios No data Answers Current Ratio (times) No data 1.75 Quick Ratio (times) No data 0.48 Average Payment Period (days) No data 190.12 Asset Management Ratios No data Total Asset Turnover (times) No data 2.90 Average Collection Period (days) No data 12.15 Inventory Turnover (times) No data 5.70 Financial Leverage Ratios No data Total Debt to Total Assets No data 70.64% Equity Multiplier (times) No data 1.59 Profitability Ratios No data Operating Profit Margin No data 0.06 Net Profit Margin No data 3.55% Return on Total Assets No data 10.32% Return on Equity No data 16.36% Earnings per Share No data 0.99
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How effective is the organization in collecting its receivables?
| Use the Hillside, Inc. |
||||||
| Table 1: Hillside, Inc. Balance Sheet ($ in Millions) | ||||||
| ASSETS | LIABILITIES | |||||
| Cash & Marketable Securities | 449.90 | Accounts Payable | 1,611.20 | |||
| 954.80 | Salaries Payable | 225.20 | ||||
| Inventories | 3,645.20 | Other Current Liabilities | 1,118.80 | |||
| Other Current Assets | 116.60 | Total Current Liabilities | 2,955.20 | |||
| Total Current Assets | 5,165.27 | |||||
| Other Liabilities | 693.40 | |||||
| Machinery & Equipment | 1,688.90 | |||||
| Land | 1,129.70 | Total Liabilities | 3,648.60 | |||
| Buildings | 2,348.40 | |||||
| (575.60) | SHAREHOLDER'S EQUITY | |||||
| Property, Plant & Equip. - Net | 4,591.40 | Common Stock | 828.50 | |||
| Other Long Term Assets | 120.90 | 5,401.70 | ||||
| Total Long-Term Assets | 4,712.30 | Total Shareholder's Equity | 6,230.20 | |||
| Total Assets | 9,877.57 | Total Liabilities & Equity | 9,878.80 | |||
| Table 2: Hillside, Inc. Income Statement ($ in Millions) | ||||||
| Revenue | 28,681.10 | |||||
| Cost Of Goods Sold | 20,768.80 | |||||
| Gross Profit | 7,912.30 | |||||
| Operating Expenses: | ||||||
| Selling, General & Admin. | 5,980.80 | |||||
| Depreciation | 307.30 | |||||
| Operating income | 1,624.20 | |||||
| Interest | - | |||||
| Other Expense (Income) | (13.10) | |||||
| Income Before Taxes | 1,637.30 | |||||
| Income Taxes | 618.10 | |||||
| Net Income | 1,019.20 | |||||
| Number of Common Stock | ||||||
| Shares Outstanding | 1,032,271 | |||||
| Table 3: Financial Performance Calculations | ||||||
| No data | Answers | |||||
| No data | 1.75 | |||||
| Quick Ratio (times) | No data | 0.48 | ||||
| Average Payment Period (days) | No data | 190.12 | ||||
| Asset Management Ratios | No data | |||||
| Total Asset Turnover (times) | No data | 2.90 | ||||
| Average Collection Period (days) | No data | 12.15 | ||||
| Inventory Turnover (times) | No data | 5.70 | ||||
| Financial Leverage Ratios | No data | |||||
| Total Debt to Total Assets | No data | 70.64% | ||||
| Equity Multiplier (times) | No data | 1.59 | ||||
| Profitability Ratios | No data | |||||
| Operating Profit Margin | No data | 0.06 | ||||
| Net Profit Margin | No data | 3.55% | ||||
| Return on Total Assets | No data | 10.32% | ||||
| Return on Equity | No data | 16.36% | ||||
| Earnings per Share | No data | 0.99 |
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