Kellogg's Company and General Mills compete in the consumer packaged goods (CPG) sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions K GIS Total revenue $13,547.0 $15,740.4 Cost of sales and services 8,821.0 10,312.9 1,382.0 Average accounts receivable. Average inventory.... Average accounts payable. 1,557.2 1,562.9 2,433.0 1,273.5 2,348.0 a. Compute the following measures for both companies. K GIS 1. Days sales outstanding (DSO) 2. Days inventory outstanding (DIO) 3. Days payables outstanding (DPO) Cash conversion cycle (CCC) 4. K GIS b. Which company better manages its accounts receivable? Which company uses inventory more efficiently? Which company better manages its accounts payable? с. d.

Kellogg's Company and General Mills compete in the consumer packaged goods (CPG) sector. Refer to the following 2018 financial data for the two companies to answer the requirements. $ millions K GIS Total revenue $13,547.0 $15,740.4 Cost of sales and services 8,821.0 10,312.9 1,382.0 Average accounts receivable. Average inventory.... Average accounts payable. 1,557.2 1,562.9 2,433.0 1,273.5 2,348.0 a. Compute the following measures for both companies. K GIS 1. Days sales outstanding (DSO) 2. Days inventory outstanding (DIO) 3. Days payables outstanding (DPO) Cash conversion cycle (CCC) 4. K GIS b. Which company better manages its accounts receivable? Which company uses inventory more efficiently? Which company better manages its accounts payable? с. d.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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10: Application of Financial Ratios Used to Measure Profitability The income statement of Garnet Mfg. Corp. for 2018 shows the following: Sales, net P 700,000 15,000 400,000 Net credit sales Cost of goods sold Cost of goods manufactured Net credit purchases 410,000 150,000 225,000 90,000 212,500 20,000 Raw materials used Net income Total operating expenses Depreciation Net income 90,000 The balance sheet figures as of December 31, 2017 and 2018 are as follows: December 31 2017 2018 P12,500 P 25,000 Cash 17,500 28,750 Marketable securities 10,000 20,000 Accounts receivable, net Inventories: 25,000 35,000 Finished goods Work in process 22,500 15,000 3,750 P 150,000 37,500 17,500 10,000 Raw materials Prepaid expenses Total current assets 2,500 P95,000 37,500 Investments 117,500 187,500 Plant, property and equipment, net
Compare Income Statements and Balance Sheets of Competitors a. Following are selected income statements from two pharmaceutical companies, Pfizer and Dr. Reddy's, for their respective 2018 fiscal years. Express each income statement amount as a percentage of sales. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). Income Statement ($ millions) Sales Pfizer Dr. Reddy's $46,136 0% $1,876 09 Cost of goods sold 11,248 0% 1,009 0% Gross profit 34,888 0% 867 0% Total expenses Net income 26,841 $8,047 0% 0% 878 $(11) 0% 0% b. Following are selected balance sheets from two pharmaceutical companies, Pfizer and Dr. Reddy's, for their respective 2018 fiscal years. Express each balance sheet amount as a percentage of total assets. Note: Round percentage to one decimal point (for example, round 18.566% to 18.6%). Balance Sheet ($ millions) Pfizer Dr. Reddy's Current assets $42,936 0% $1,448 0% Long-term assets Total assets 109,496 $152,432 0% 1,781 096 0% $3,229 09…
The income statement of Sheridan Company is shown below. Sheridan Company Income Statement For the Year Ended December 31, 2025 Sales revenue $7,030,000 Cost of goods sold Beginning inventory $1,950,000 Purchases 4,600,000 Goods available for sale 6,550,000 Ending inventory 1,680,000 Cost of goods sold 4,870,000 Gross profit 2,160,000 Operating expenses Selling expenses 500,000 Administrative expenses 640,000 1,140,000 Net income $1,020,000 Additional information: 1. Accounts receivable decreased $330,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $270,000 during the year. 4. Accrued expenses payable decreased $120,000 during the year. 5. Administrative expenses include depreciation expense of $60,000. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2025, for Sheridan Company, using the indirect method. (Show amounts that decrease cash flow…
The Cullumber Supply Company reported the following information for 2017. Prepare a common-size income statement for the year ended June 30, 2017. (Round answers to 1 decimal place, e.g. 52.7%.) Cullumber Supply CompanyIncome Statement for the Fiscal Year Ended June 30, 2017($ thousands) % of Net Sales Net sales $2,111,000 enter percentages of net sales % Cost of goods sold 1,464,000 enter percentages of net sales % Selling and administrative expenses 312,200 enter percentages of net sales % Nonrecurring expenses 27,600 enter percentages of net sales % Earnings before interest, taxes, depreciation, and amortization (EBITDA) $307,200 enter percentages of net sales % Depreciation 117,000 enter percentages of net sales % Earnings before interest and taxes (EBIT) 190,200 enter percentages of net sales % Interest expense 118,600 enter percentages of net sales % Earnings before taxes (EBT)…
Presented below is selected information for Ivanhoe Company for the month of March 2024. Cost of goods sold Delivery expense Insurance expense Salaries expense $218,299 8,117 6,500 57,500 Sales Rent expense Sales discounts Sales returns and allowances Prepare a multiple-step income statement. 29,700 7,700 13,300 440,000
Crane Manufacturing Ltd's sales for the year ended December 31, 2022 are $1.24 million. The expenses for 2022 are as follows: Cost of goods sold Selling expenses Variable Fixed $416,000 $234.000 34,320 46,800 72,800 Administrative expenses 36,320 Prepare a detailed CVP income statement for the year ended December 31, 2022. Crane Manufacturing Ltd. CVP Income Statement
Need a,b,c

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