The following is a list of account titles and amounts (in millions) reported at
ID: 2465303 • Letter: T
Question
The following is a list of account titles and amounts (in millions) reported at December 29, 2013, by Hashey, Inc., a leading manufacturer of games, toys, and interactive entertainment software for children and families: Prepare the asset section of a classified balance sheet for Hashey, Inc. (Enter assets in the order of their liquidity. Enter your answers in millions. Amounts to be deducted should be indicated by a minus sign.) Using Hashey's 2013 Net Sales Revenue of $4,118 (million) and its Net Fixed Assets of $250 (million) at December 30, 2012, calculate the fixed asset turnover ratio for 2013. (Round your answers to 2 decimal places.) Has the company generated more or less revenue from each dollar of fixed assets than in 2012, when the ratio was 18.35?Explanation / Answer
1.
2. a. Fixed Assets Turnover ratio = Sales/ Average Assets
Average assets = 259 + 250 / 2 = 254.50
Fixed Assets Turnover Ratio = 4118 / 254.50 = 16.18
2 b. Less revenue in 2013 as compared to 2012, Since higher the assets turnover ratio better the performance.
Assets Section of Balance Sheet Particulars Amt ($) Amt ($) Current Assets Accounts Receivable 1138 Less: Allowance for bad debts 47 Net Accounts Receivable 1091 Inventory 370 Cash & Cash Equivalents 700 Prepaids 375 Total Current Assets 2536 Land 9 Buildings 260 Equipment 510 Property Plant & Equipment at cost 779 Accumulated Depreciation 520 Total Property Plant & Equipment (Net) 259 Intangible Assets Goodwill 615 Licensing Rights 1855 Accumulated Amortization 765 Net Intangible assets 1705 Total Assets 4500Related Questions
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