P2-50. Compare Cash Flows Across Retailers Following are selected accounts from the income statement and the statement of cash flows for several retailers, for their fiscal years ended in 2018. Cash Flows from Net $ millions Sales Income Operating Investing Financing $ 25,739 $ 1,108 108,203 $ 1,735 13,038 Macy's...... Home Depot Best Buy Target... $ (456) (2,416) 508 (3,416) (24,036) $ (1,544) (12,420) (2,018) (3,644) (2,537) 11,121 .... .. 42,879 75,356 511,729 1,464 2,937 6,670 2,408 5,973 ..... Walmart Stores.. 27,753 Required a. Compute the ratio of net income to sales for each company. Rank the companies on the basis of this ratio. Do their respective business models give insight into these differences? b. Compute net cash flows from operating activities as a percentage of sales. Rank the companies on the basis of this ratio. Does this ranking coincide with the ratio rankings from part a? Suggest one or more reasons for any differences observed. c. Compute net cash flows from investing activities as a percentage of sales. Rank the companies on the basis of this ratio. Does this ranking coincide with the ratio rankings from part a? Suggest one or more reasons for any differences observed.

P2-50. Compare Cash Flows Across Retailers Following are selected accounts from the income statement and the statement of cash flows for several retailers, for their fiscal years ended in 2018. Cash Flows from Net $ millions Sales Income Operating Investing Financing $ 25,739 $ 1,108 108,203 $ 1,735 13,038 Macy's...... Home Depot Best Buy Target... $ (456) (2,416) 508 (3,416) (24,036) $ (1,544) (12,420) (2,018) (3,644) (2,537) 11,121 .... .. 42,879 75,356 511,729 1,464 2,937 6,670 2,408 5,973 ..... Walmart Stores.. 27,753 Required a. Compute the ratio of net income to sales for each company. Rank the companies on the basis of this ratio. Do their respective business models give insight into these differences? b. Compute net cash flows from operating activities as a percentage of sales. Rank the companies on the basis of this ratio. Does this ranking coincide with the ratio rankings from part a? Suggest one or more reasons for any differences observed. c. Compute net cash flows from investing activities as a percentage of sales. Rank the companies on the basis of this ratio. Does this ranking coincide with the ratio rankings from part a? Suggest one or more reasons for any differences observed.

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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Given the following financial statement information: $ in millions Income Statement Net Income: $559 Depreciation Expense: $55 Balance Sheet Dec. 31, 2022 Accounts Receivable $38 Total Inventory $122 Accounts Payable $79 Calculate the cash from operating activities. Your Answer: Dec. 31, 2023 $64 $152 $108
What is the amount of sales under cash basis? What is the amount of purchases under cash basis? What is the cost of goods sold under cash basis? What is the amount of depreciation under cash basis? What is the net income under cash basis?
Given the following financial statement information: $ in millions Income Statement Net Income: $578 Depreciation Expense: $50 Balance Sheet Accounts Receivable Total Inventory Dec. 31, 2022 $38 $112 Accounts Payable $85 Calculate the cash from operating activities. Dec. 31, 2023 $63 $157 $108
Use the followIng Income statement and balare cheet Informatlon to put togethe er a statement of cash nows. (Eoter oegatve amouNTtS Lsng eibhera negaative slyn pENERINTD ChEe 7.017 Sales $1,237,000 Statement ot Cash Flows 2017 Cost of goods sold $684,000 Gross proft $553,000 Gen'1& admin expense $156,000 Selling & mkt expense $135,000 Depreclation $24,000 Operating Income $238,000 Interest $141,000 Income before taxes $97,000 Income taxes (27%) $26,190 Net Income 570,810 Dividends pald $25,000 Assets 2017 2016 Cash $14,590 Accounts recelvable $124,000 $113,000 Inventory $201,000 $218,000 Total current assets $345.590 Gross plant and equipmnent $700,000 $475.000 Less: accum. depreciation $313,000 $289,000 Net plant and equipment $387,000 $185.000 Total assets 5735,000 $531,590 Lablitles Accounts payable $118,000 $105,000 Notes payable $26,000 $26,000 Total current llablitles 5144,000 $131.000 Long-term debt $248,000 5154,000 Total llabilitles $392,000 3285,000 Common stock ($0.01 par)…
The following information is available for Cullumber Products: 2014 2013 Accounts receivable $76,800 $94,720 Cost of goods sold 675,840 742,400 Inventory (ending) 66,560 87,040 Net cash provided by operating activities 281,600 217,600 Net sales 1,157,760 1,203,200 Capital expenditures 51,200 48,640 Dividends 31,104 40,960 Compute the following for 2014: (Round answers to 1 decimal place, e.g. 52.7. Use 365 days for calculation.) Accounts receivable turnover enter a number of times rounded to 1 decimal place times Average collection period enter a number of days rounded to 1 decimal place days
Subject: acounting
Cash receipts totaled $875,000 for property taxes and $292,500 from other revenue. Note: Enter debits before credits. Transaction General Journal Debit Credit 04 .
Use the appropriate information from the data provided below to calculate operating income for the year ended December 31, 2020. Cost of goods sold General and administrative expenses Net cash provided by financing activities Dividends paid Income tax expense Other selling expenses Net sales Advertising expense Accounts payable $ 234,000 96,000 138,000 32,000 22,000 52,000 556,000 78,000 66,000
Cash and accounts receivable for Adams Company are provided below: Prior Year Current Year Cash $50,799 Accounts receivable (net) 26,163 Based on this information, what is the amount and percentage of increase or decrease that would be shown with horizontal analysis? Enter a decrease using a minus sign before the amount and the percentage. Account Dollar Change Percent Change Cash Accounts Receivable $41,300 45,900
Subject :- Accounting
The following items appeared on the financial statements of Washington Company. Line Item Description Amount Accounts receivable, January 1 $13,395 Accounts receivable, December 31 6,901 Accounts payable, January 1 5,645 Accounts payable, December 31 8,721 Inventory, January 1 6,686 Inventory, December 31 16,260 Sales 73,071 Cost of goods sold 34,443 Washington Company uses the direct method to report cash flows from (used for) operating activities. Assume that all accounts payable are owed to merchandise suppliers. Cash payments for merchandise were
A company’s current-year income statement and selected balance sheet data at December 31 of the current and prior years follow. Prepare the operating activities section of the statement of cash flows using the indirect method for the current year.

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