Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Textbook Question
Chapter 13, Problem 2MAD
Analyze and compare Apple, Coca-Cola, and Verizon
Financial information for Apple Inc. (AAPL), The Coca-Cola Company (KO), and Verizon Communications (VZ) follows (in millions):
- a. Compute the
free cash flow for each company. - b. Compute the ratio of free cash flow to sales for each company. Round to one decimal place.
- c. Which company has the greatest free cash flow?
- d. How does Verizon differ from the other two companies?
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Consider the following balance sheet and income statement for Mmm Good Foods Incorporated (the company that operates Tasty
Fried Chicken and Pizza Party), in condensed form, including some information from the cash flow statement: (amounts are in millions)
Balance Sheet
Cash and short-term Investments
Accounts receivable
Inventory
Other current assets
Long-lived assets
Total assets
Current liabilities
Total liabilities
Noncontrolling interest
Shareholders equity
Total liabilities and equity
Income Statement.
Sales
Cost of sales
Gross margin
Earnings before interest and taxes
Interest
Taxes
Income from discontinued operations
Net income.
Share price
Earnings per share.
Number of outstanding shares (millions)
Cash Flows
Cash flow from operations
Capital expenditures
Dividends
Mmm Good
Foods
Incorporated
2019
$ 716
382
48
432
4,068
$5,646
$1,429
11,158
(5,512)
$5,646
$ 6,486
3,558
$ 2,928
$1,637
319
336
613
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$75
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$1,216
416
754
c. Compute the quick ratio for each company. Round your answers to one decimal place.
Abercrombie:
The Gap:
Current assets:
Analyze and compare Abercrombie & Fitch and The Gap
Abercrombie & Fitch Co. (ANF) and The Gap, Inc. (GPS) are two U.S. apparel retailers. The current assets and current liabilities for each
company from recent balance sheets are as follows (in thousands):
Cash
Accounts receivable
Inventories
X
Other current assets
Total current assets
Current liabilities:
Accounts payable
Other current liabilities
Total current liabilities
X
Abercrombie
& Fitch
The Gap
$723,135 $1,364,000
73,112
290,000
437,879
2,156,000
101,824
706,000
$1,335,950
$4,516,000
$226,878
332,039
$558,917
$1,174,000
2,035,000
$3,209,000
Please calculate the Gross profit percentage, current ratio, debt-to-equity ratio, and earnings per share for Columbia Sportswear Company. Using the ratios, evaluate the financial statements from Columbia Sportswear Company. What does each of your four ratios indicate about the financial performance of the company? Based on your financial analysis: would you invest in this company? Why or why not?
Chapter 13 Solutions
Financial And Managerial Accounting
Ch. 13 - What is the principal disadvantage of the direct...Ch. 13 - Prob. 2DQCh. 13 - A corporation issued 2,000,000 of common stock in...Ch. 13 - A retail business, using the accrual method of...Ch. 13 - Prob. 5DQCh. 13 - A long-term investment in bonds with a cost of...Ch. 13 - A corporation issued 2,000,000 of 20-year bonds...Ch. 13 - Fully depreciated equipment costing 50,000 was...Ch. 13 - Prob. 9DQCh. 13 - Name five common major classes of operating cash...
Ch. 13 - Classifying cash flows Identify whether each of...Ch. 13 - Prob. 2BECh. 13 - Prob. 3BECh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Land transactions on the statement of cash flows...Ch. 13 - Common stock transactions on the statement of cash...Ch. 13 - Prob. 7BECh. 13 - Appendix 2 Cash received from customersdirect...Ch. 13 - Appendix 2 Cash payments for merchandisedirect...Ch. 13 - Prob. 1ECh. 13 - Effect of transactions on cash flows State the...Ch. 13 - Classifying cash flows Identify the type of cash...Ch. 13 - Prob. 4ECh. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Cash flows from operating activitiesindirect...Ch. 13 - Prob. 7ECh. 13 - Reporting changes in equipment on statement of...Ch. 13 - Reporting changes in equipment on statement of...Ch. 13 - Reporting land transactions on statement of cash...Ch. 13 - Determining cash payments to stockholders The...Ch. 13 - Prob. 12ECh. 13 - Reporting land acquisition for cash and mortgage...Ch. 13 - Reporting issuance and retirement of long-term...Ch. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method List the...Ch. 13 - Prob. 19ECh. 13 - Prob. 20ECh. 13 - Prob. 21ECh. 13 - Prob. 22ECh. 13 - Prob. 1PACh. 13 - Prob. 2PACh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsdirect method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Prob. 1PBCh. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsindirect method The...Ch. 13 - Statement of cash flowsdirect method The...Ch. 13 - Statement of cash flowsdirect method applied to PR...Ch. 13 - Analyze and compare Amazon.com, Best Buy, and...Ch. 13 - Analyze and compare Apple, Coca-Cola, and Verizon...Ch. 13 - Prob. 3MADCh. 13 - Prob. 4MADCh. 13 - Prob. 5MADCh. 13 - Ethics in Action Head Donuts Inc. is a retailer of...Ch. 13 - Prob. 3TIFCh. 13 - Using the statement of cash flows You are...
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