Fiscal year ends in January. USD in millions except 2016-01 2017-01 Fiscal year
ID: 2788459 • Letter: F
Question
Fiscal year ends in January. USD in millions except 2016-01 2017-01 Fiscal year ends in January USD in 2016-01 201701 20369 21987 Assets Current assets Gross profit 52 6306 6783 Cash and cash equivalents Total cash Receivables Inventories Sales, General and administrative 4366 4719 4366 4719 1940 2063 98 Operating income Interest Expense Other income (expense) Income before income taxes Provision for income taxes Net income from continuing operations Net income 3074 193 3259 urrent asset 3432 3678 1853 688 714 1165 1251 1165 1251 1966 on-current asset Property, plant and equipment Land 273 2527, 2797 1388 1524 and equipment Other properties 4170 4595 Property and equipment, at cost Accumulated Depreciatio Property,plant and equipment, net Goodwill Intangible assets Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity Liabilities 1906 -2161 2434 4339 4339 1201 1201 22 21 7825 7995 11258 11672 2264 pital leases Accounts payable Deferred income taxes Taxes payable Accrued liabilities 1558 170 238 2623 otal current liabilities Non-current liabilities Capital leases Deferred taxes liabilities Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Common stock Additional paid-in capital Retained earnings Accumulated other co Total stockholders' equity Total liabilities and stockholders'e11258 2969-2711 640 653 275280 3884 3643 5880 6266 251 241 3107 3155 2026 2016 5378 5406 11672 Use the statements above to compute the FOLLOWING RATIO FOR 2017 Current ratio Days in inventory 5. Fixed asset turnoverXX 6. Times interest owned Basic earning power 4. 7. 18, Return on equity 160Explanation / Answer
3) Current Ratio = Current Assets / Current Liabilities = 3678 / 2623 = 1.402
4) Days in inventory = (Average Inventory / Cost of Goods Sold) x 365 days = (3166.5 / 15204) x 365 = 76 days
Average Inventory = (Opening Invetory as on 2016-01 + Closing Inventory as on 2017-01) / 2 = (3074+3259) / 2 = 3166.5
5) Fixed Asset Turnover = Net sales / Net Property, plant and equipment = 21987 / 2434 = 9.033
6) Times Interest owned = EBIT / Interest Expense = 2063 / 98 = 21.051 times
Where, EBIT = Operating Income = 2063
7) Basic Earning Power = EBIT / Total Assets = 2063 / 11672 = 0.177
8) Return on Equity = Net income / Equity Shareholders Funds = 1251 / 5406 = 0.2314 or 23.14%
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