No items impacted retained earnings other than net income and dividends. What is

ID: 2571069 • Letter: N

Question

No items impacted retained earnings other than net income and dividends.

What is the cumulative amount of income tax savings that Manzanita has generated through 2014 by using the LIFO method instead of the FIFO method? (Format: $xx million)

Calculate the inventory turnover ratio under the LIFO. (Format: x.xx)

Calculate the inventory turnover ratio under FIFO. (Format: x.xx)

Calculate the cash conversion cycle under LIFO. (Format: xx days)

Calculate the cash conversion cycle under FIFO. (Format: xx days)

Calculate ‘Cash flow from operating activities’ of Manzanita in 2014 using ‘indirect’ method.(Format: $xxx million or $(xxx) million)

Calculate ‘Cash flow from investing activities’ of Manzanita in 2014. (Format: $xxx million or $(xxx) million)

Calculate ‘Cash flow from financing activities’ of Manzanita in 2014. (Format: $xx million or $(xx) million)

Make sure the addition of the THREE gives you the change of Cash.

MANZANITA Inc. Balance Sheet information (US$ millions) As of December 31 2014 2013 Cash and cash equivalent 367 423 Accounts receivable 1,378 1,364 Inventories 1,260 1,015 Other current assets 375 195 Total current assets 3,380 2,997 Property and equipment, net 9,105 8,916 Total assets 12,485 11,913 Account payable 689 502 Other current liabilities 2,696 3,073 Total current liabilities 3,385 3,575 Long-term debt 1,932 1,812 Total liabilities 5,317 5,387 Common stock and paid in capital 4,956 4,956 Retained earnings 2,212 1,570 Total shareholders' equity 7,168 6,526 Total liabilities and shareholders' equity 12,485 11,913 Income Statement Information (US$ millions) For Years Ended December 31 2014 2013 Sales 13,038 12,483 Cost of goods sold 6,633 6,441 Depreciation expense 417 357 Selling, general, and administrative expense 4,968 4,911 Interest expense 93 54 Income tax expense 185 144 Net income 742 576 Notes The LIFO reserves as of December 31 2014 and 2013 are $465 million and $351 million. The effective tax rate for 2014 and earlier periods is 20%.