Working with the Takeaways Throughout this chapter we have considered the financial state- ments of Apple Inc. and have undertaken select financial analysis using the Takeaways. Utilize these same tools to analyze the financial data of L puter peripherals. The following information was re statements as of year-end March 31, 2017 and 2016: International, a manufacturer of com- by Logitech in the company's financial March 31 (in thousands) 2017 2016 Current assets . $1,027,845 $ 926,247 Total assets 1,498,677 507,078 1,324,147 414,930 564,199 2,018,100 119,317 183,111 56,615 Current liabilities. Total liabilities.. Net sales... Net income.. Cash provided by operating activities.. Expenditures on property, plant, and equipment . 642,566 2,221,427 205,876 278,728 31,804 Required 1. Calculate the return on sales ratio for each year and comment on Logitech's profitability. 2. Calculate the current ratio for each year and comment on Logitech's liquidity. 3. Calculate the debt-to-total-assets ratio for each year and comment on Logitech's solvency. 4. Calculate the free cash flow for each year and comment on what this means for Logitech. 5. Apple's fiscal year-end occurs near the end of September, whereas Logitech uses a March year- end. How might this affect a comparison of the financial results of the two companies?

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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Working with the Takeaways throughout this chapter we have considered the financial statements of Apple Inc. and have undertaken select financial analysis using the Takeaways. Utilize

these same tools to analyze the financial data of

Logitech International, a manufacturer of computer peripherals. The following information was reported by Logitech in the company’s financial statements as of year-end March 31, 2017 and 2016.

1. Calculate the return on sales ratio for each year and comment on Logitech’s profitability.

2. Calculate the current ratio for each year and comment on Logitech’s liquidity.

3. Calculate the debt-to-total-assets ratio for each year and comment on Logitech’s solvency.

4. Calculate the free cash flow for each year and comment on what this means for Logitech.

5. Apple’s fiscal year-end occurs near the end of September, whereas Logitech uses a March year-end. How might this affect a comparison of the financial results of the two companies?

Working with the Takeaways Throughout this chapter we have considered the financial state-
ments of Apple Inc. and have undertaken select financial analysis using the Takeaways. Utilize
these same tools to analyze the financial data of Ld
puter peripherals. The following information was re
statements as of year-end March 31, 2017 and 2016:
International, a manufacturer of com-
| by Logitech in the company's financial
March 31 (in thousands)
2017
2016
$1,027,845 $ 926,247
1,498,677
507,078
642,566
2,221,427
205,876
278,728
31,804
Current assets
Total assets
1,324,147
Current liabilities.
414,930
564,199
2,018,100
119,317
183,111
56,615
Total liabilities..
Net sales...
Net income.
Cash provided by operating activities....
Expenditures on property, plant, and equipment
Required
1. Calculate the return on sales ratio for each year and comment on Logitech's profitability.
2. Calculate the current ratio for each year and comment on Logitech's liquidity.
3. Calculate the debt-to-total-assets ratio for each year and comment on Logitech's solvency.
4. Calculate the free cash flow for each year and comment on what this means for Logitech.
5. Apple's fiscal year-end occurs near the end of September, whereas Logitech uses a March year-
end. How might this affect a comparison of the financial results of the two companies?

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