Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 6, Problem 31E
The Home Depot reported the following data (in millions) in its recent financial statements:
- a. Determine the asset turnover for The Home Depot for Year 2 and Year 1. Round to two decimal places.
- b.
What conclusions can be drawn concerning the trend in the ability of The Home Depot to effectively use its assets to generate sales?
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The Home Depot reported the following data (in millions) in its recent financial statements:
Year 2
Year 1
Sales
$83,176
$78,812
Total assets at the end of the year
Total assets at the beginning of the year
39,946
40,518
40,518
41,084
a. Determine the asset turnover for The Home Depot for Year 2 and Year 1. Round to two
decimal places.
b.
What conclusions can be drawn concerning the trend in the ability of The
Home Depot to effectively use its assets to generate sales?
I need help to determine the following;
3. For P & B Manufacturing to asses their asset management I need help to calculate the average collection period (assuming all sales are on account) AND the average sale period (use 365 days in a year). Include calculations and round answers to 2 decimal places.
The following information was reported by Amuse Yourself Parks (AYP):
Net fixed assets (beginning of year)
Net Fixed assets (end of year)
Net sales for the year
Net income for the year
Required:
Compute the company's fixed asset turnover ratio for the year.
Numerator
Denominator
Fixed Asset Turnover Ratio
11
$ 8,490,000
8,290,000
4,111,100
1,930,000
"1
Chapter 6 Solutions
Financial Accounting
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- Analyze Home Depot The Home Depot (HD) reported the following data (in millions) in its recent financial statements: a. Determine the asset turnover ratio for Home Depot for Year 2 and Year 1. Round to two decimal places. b. What conclusions can be drawn from these ratios concerning the change in the ability of Home Depot to effectively use its assets to generate sales?arrow_forwardCompare Dollar Tree and Dollar General The asset turnover ratios for two recent years for Dollar Tree, Inc. (DLTR) are shown in the Analysis for Decision Making section of this chapter. Using your results from MAD 5-2, compare and interpret the asset turnover ratios for Dollar Tree and Dollar General (DG).arrow_forwardPlease help me with show all calculation thankuarrow_forward
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