What is the average collection period, inventory turnover, and total asset turnover for P&G from 2016,...

What is the average collection period, inventory turnover, and total asset turnover for P&G from 2016, 2017, and 2018 using http://financials.morningstar.com/balance-sheet/bs.html?t=PG&region=usa&culture=en-US

http://financials.morningstar.com/income-statement/is.html?t=PG&region=usa&culture=en-US

http://financials.morningstar.com/cash-flow/cf.html?t=PG&region=usa&culture=en-US

Expert Solution

Average Collection Period = 365 Days / [Net Sales / Average Account Receivables]

Average Collection Period for 2018 = 365 / {66,832 / [(4,686 + 4,594)/2]}
=> 365 / 14.40345 = 25.34 Days

Average Collection Period for 2017 = 365 / {65,058 / [(4,594 + 4,373)/2]}
=> 365 / 14.5105= 25.15 Days

Average Collection Period for 2016 = 365 / {65,299 / [(4,373 + 4,861)/2]}
=> 365 / 14.1432= 25.81 Days

Inventory Turnover = Cost of Goods Sold / Average Inventory

Inventory Turnover for 2018 = 34,268 / [(4,738 + 4,624)/2]
=> 34,268 / 4,681 = 7.32

Inventory Turnover for 2017 = 32,535 / [(4,624 + 4,716)/2]
=> 34,268 / 4,681 = 6.97

Inventory Turnover for 2016 = 32,909 / [(4,716 + 5,454)/2]
=> 34,268 / 4,681 = 6.47

Total Asset Turnover = Net Sales / Average Total Assets

Total Asset Turnover for 2018 = 66,832 / [(118,310 + 120,406)/2]
=> 66,832 / 119,358 = 0.5599

Total Asset Turnover for 2017 = 65,058 / [(120,406 + 127,136)/2]
=> 65,058 / 123,771 = 0.5256

Total Asset Turnover for 2018 = 65,299 / [(127,136 + 129,495)/2]
=> 65,299 / 128,315.5= 0.5089

jeff jeffy answered 7 months ago

Total asset turnover 1.5 times Average collection period (assume 365-day year) 15 days Fixed asset turnover...

Total asset turnover 1.5 times Average collection period (assume 365-day year) 15 days Fixed asset turnover 5 times Inventory turnover (based on cost of goods sold) 3 times Current ratio 2.0 times Sales (all on credit) $4,000,000 Cost of goods sold 75% of sales Debt ratio 40% Fill in the assets section of the pro forma balance sheet. (Round all items to the nearest dollar.) Cash $ Accounts receivable Inventories Net fixed assets Total assets $ Fill in the liabilities...

Ho to calculate receivable collection period, payables deferral period, and cash conversation period for P&G 2016,...

Ho to calculate receivable collection period, payables deferral period, and cash conversation period for P&G 2016, 2017, 2018. http://financials.morningstar.com/income-statement/is.html?t=PG&region=usa&culture=en-US http://financials.morningstar.com/balance-sheet/bs.html?t=PG&region=usa&culture=en-US http://financials.morningstar.com/cash-flow/cf.html?t=PG&region=usa&culture=en-US

What is a firm's total asset turnover

What is a firm's total asset turnover, If its fixed assets are 120,000 current assets are 30,000 current liabilities are 44,000 sales were 200,000 and net income was 75,000.

Zane Corporation has an inventory conversion period of 89 days, an average collection period of 39...

Zane Corporation has an inventory conversion period of 89 days, an average collection period of 39 days, and a payables deferral period of 31 days. Assume 365 days in year for your calculations. What is the length of the cash conversion cycle? Round your answer to two decimal places. days If Zane's annual sales are $3,706,915 and all sales are on credit, what is the investment in accounts receivable? Do not round intermediate calculations. Round your answer to the nearest...

Zane Corporation has an inventory conversion period of 63 days, an average collection period of 33...

Zane Corporation has an inventory conversion period of 63 days, an average collection period of 33 days, and a payables deferral period of 37 days. Assume 365 days in year for your calculations. What is the length of the cash conversion cycle? Round your answer to two decimal places. __days If Zane's annual sales are $2,679,070 and all sales are on credit, what is the investment in accounts receivable? Round your answer to the nearest cent. Do not round intermediate...

A firm has days' sales in an inventory of 105 days, an average collection period of...

A firm has days' sales in an inventory of 105 days, an average collection period of 35 days, and takes 42 days, on average, to pay its accounts payable. Taken together, what do these three figures imply about the firm's operations and its cash flows?

Analyze the Average Collection Period Based on the table Average Collection Period 2017 2018 2019 Kilroy...

Analyze the Average Collection Period Based on the table Average Collection Period 2017 2018 2019 Kilroy Realty Corporation 124d 130d 147d Cushman & Wakefield 4d 2d 4d Progressive Real Estate 10d 7d 6d Analyze the Fixed Asset Turnover based on the table Fixed Asset Turnover 2017 2018 2019 Kilroy Realty Corporation 5.7 4.5 8.1 Cushman & Wakefield 1.2 1.3 1.2 Progressive Real Estate 1.2 1.1 1.1 Analyze Debt to Asset Ratio based on the table Debt to Asset Ratio 2017...

A.) How do you find the following asset management ratios? 1. average collection period 2. average...

A.) How do you find the following asset management ratios? 1. average collection period 2. average days in inventory 3. total asset turnover B.)please find the previous three ratios for the company Anheuser-Busch.

Define the following terms and list the equation for each. Inventory conversion period – Average collection...

Define the following terms and list the equation for each. Inventory conversion period – Average collection period – Payables deferral period – Cash conversion cycle – What should a firm’s goal be regarding the cash conversion cycle, holding other things constant? Explain your answer.

The total asset turnover should generally be higher in value than the fixed-asset turnover. A. True...

The total asset turnover should generally be higher in value than the fixed-asset turnover. A. True B. False

Question