Required Compute the following ratios for the companies' 2019 fiscal years (year ending in December 2019 for Fresh Grocer and Best Grocer Note: Use 365 days in a year. Do not round intermediate calculations. Round "Current ratio" to 2 decimal places and "Average days" to nearest whole number. Round all other answers to 1 decimal place. (1) Current ratio (2) Average days to sell inventory (Use average inventory) (3) Debt-to-assets ratio (4) Return on investment (Use average assets and use 'earnings from continuing operations rather than het eamings) (5) Gross margin percentage (6) Asset tumover (Use average assets) (7) Return on sales (Use earnings from continuing operations" rather than "net earnings) (8) Plant assets to long-term debt ratio FRESH GROCER 072 days 82.7% % 21.3% times 22% 13 BEST GROCER 1.33 days 39.4 % % 34.8% 30 times 60% 42

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Total current assets
Merchandise inventory
Property and equipment, net of depreciation
Total assets
Total current liabilities
Total long-term liabilities
Total liabilities
Total shareholders' equity
Sales
Cost of goods sold
Gross profit
Operating income
Earnings from continuing operations before income tax expense
Income tax expense
Net earnings
Basic earnings per share
Total assets
Total current liabilities
Total long-term liabilities
Total liabilities
Fresh Grocer Corporated
Selected Financial Information
(amounts in millions, except per share amounts)
Total current assets
Merchandise inventory
Property and equipment, net of depreciation
Total stockholders' equity
Sales
Cost of goods sold
Gross profit
Best Grocer Incorporated
Selected Financial Information
(amounts in millions except per share data)
Net earnings
Basic earnings per share
Required
Operating income
Earnings from continuing operations before income taxes
Income tax expense
December 31, 2019 December 31, 2018
$ 11,270
$ 8,718
10,344
7,851
22,656
16,680
39,844
28,911
15,618
10,570
17,342
13,015
32,960
23,585
6,884
5,326
137,206
97,118
108,034
29,172
3,968
3,077
1,140
1,937
$ 1.94
1,874
3,571
6,162
1,581
849
2,430
3,732
17,657
11,511
77,141
19,977
December 31, 2019 December 31, 2018
$ 2,100
$ 1,955
409
6,146
1,176
1,061
462
599
$ 1.55
2,690
2,254
742
1,512
$ 1.51
2,399
5,474
1,075
566
1,641
3,833
12,767
8,193
4,574
872
783
338
445
$ 1.42
Transcribed Image Text:Total current assets Merchandise inventory Property and equipment, net of depreciation Total assets Total current liabilities Total long-term liabilities Total liabilities Total shareholders' equity Sales Cost of goods sold Gross profit Operating income Earnings from continuing operations before income tax expense Income tax expense Net earnings Basic earnings per share Total assets Total current liabilities Total long-term liabilities Total liabilities Fresh Grocer Corporated Selected Financial Information (amounts in millions, except per share amounts) Total current assets Merchandise inventory Property and equipment, net of depreciation Total stockholders' equity Sales Cost of goods sold Gross profit Best Grocer Incorporated Selected Financial Information (amounts in millions except per share data) Net earnings Basic earnings per share Required Operating income Earnings from continuing operations before income taxes Income tax expense December 31, 2019 December 31, 2018 $ 11,270 $ 8,718 10,344 7,851 22,656 16,680 39,844 28,911 15,618 10,570 17,342 13,015 32,960 23,585 6,884 5,326 137,206 97,118 108,034 29,172 3,968 3,077 1,140 1,937 $ 1.94 1,874 3,571 6,162 1,581 849 2,430 3,732 17,657 11,511 77,141 19,977 December 31, 2019 December 31, 2018 $ 2,100 $ 1,955 409 6,146 1,176 1,061 462 599 $ 1.55 2,690 2,254 742 1,512 $ 1.51 2,399 5,474 1,075 566 1,641 3,833 12,767 8,193 4,574 872 783 338 445 $ 1.42
Required
Compute the following ratios for the companies' 2019 fiscal years (year ending in December 2019 for Fresh Grocer and Best Grocer):
Note: Use 365 days in a year. Do not round intermediate calculations. Round "Current ratio" to 2 decimal places and "Average
days" to nearest whole number. Round all other answers to 1 decimal place.
(1) Current ratio
(2) Average days to sell inventory (Use average inventory)
(3) Debt-to-assets ratio
(4) Return on investment (Use average assets and use earnings from continuing operations
rather than "net eamings")
(5) Gross margin percentage
(6) Asset tumover (Use average assets)
(7) Return on sales (Use "earnings from continuing operations" rather than "net earnings.")
(8) Piant assets to long-term debt ratio
FRESH GROCER
0.72
days
82 7%
21.3%
times
22%
13
BEST GROCER
1.33
days
39.4 %
%
34.8 %
3.0 times
6.0%
42
Transcribed Image Text:Required Compute the following ratios for the companies' 2019 fiscal years (year ending in December 2019 for Fresh Grocer and Best Grocer): Note: Use 365 days in a year. Do not round intermediate calculations. Round "Current ratio" to 2 decimal places and "Average days" to nearest whole number. Round all other answers to 1 decimal place. (1) Current ratio (2) Average days to sell inventory (Use average inventory) (3) Debt-to-assets ratio (4) Return on investment (Use average assets and use earnings from continuing operations rather than "net eamings") (5) Gross margin percentage (6) Asset tumover (Use average assets) (7) Return on sales (Use "earnings from continuing operations" rather than "net earnings.") (8) Piant assets to long-term debt ratio FRESH GROCER 0.72 days 82 7% 21.3% times 22% 13 BEST GROCER 1.33 days 39.4 % % 34.8 % 3.0 times 6.0% 42
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