Question

In: Accounting

The Campbell Soup Company manufactures and markets food products throughout the world. The following sales and...

The Campbell Soup Company manufactures and markets food products throughout the world. The following sales and receivable data (in millions) were reported by Campbell Soup for two recent years:

   Year 2    Year 1
Sales $8,082 $8,268
Accounts receivable 647 670

Assume that the accounts receivable (in thousands) were $635 million at the beginning of Year 1.

American Eagle Outfitters, Inc. sells clothing, accessories, and personal care products for men and women through its retail stores. American Eagle reported the following data (in millions) for two recent years:

   Year 2    Year 1
Sales $3,522 $3,283
Accounts receivable 81 68

Assume that the accounts receivable (in millions) were $74 million at the beginning of Year 1.

Accounts receivable turnover ratios
   Year 2    Year 1
Campbell Soup 12.27 12.67
American Eagle Outfitters 47.28 46.24

Use the above information to analyze the accounts receivable turnover ratios of American Eagle Outfitters and Campbell Soup.

a. Compute the average accounts receivable turnover ratio for Campbell Soup and American Eagle Outfitters for Year 2 and Year 1. Round interim calculations and final answers to two decimal places.

Campbell Soup:
American Eagle Outfitters:

Solutions

Expert Solution


Related Solutions

What is the five forces porter of the campbell soup company ?
What is the five forces porter of the campbell soup company ?
Campbell Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales...
Campbell Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $43. Variable costs Manufacturing $ 11 per unit Selling 5 per unit Fixed costs Manufacturing $ 152,000 per year Selling and administrative $ 212,500 per year Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a...
What is your best estimate of the WACC for Kraft Foods, Campbell Soup Company, and Del...
What is your best estimate of the WACC for Kraft Foods, Campbell Soup Company, and Del Monte Foods? How do these WACCs influence your thinking about the WACC for Heinz?Exhibit 4     H. J. HEINZ: ESTIMATING THE COST OF CAPITAL IN UNCERTAIN TIMES     Comparable Firm Data                      Campbell Del Kraft Soup Monte Financial Summary     Revenues (in millions of dollars) 40,386 7,589 3,739 Book value of equity (in millions of dollars) 25,972 728 1,827 Book value of debt (in millions...
Campbell Soup Company estimates that 396,000 direct labor hours will be worked during 2018 in the...
Campbell Soup Company estimates that 396,000 direct labor hours will be worked during 2018 in the Mixing Department. On this basis, the following budgeted manufacturing overhead data are computed: Variable Overhead Costs Fixed Overhead Costs Indirect labor $99,000 Supervision $138,600 Indirect materials 66,000 Depreciation 99,000 Repairs 33,000 Insurance 59,400 Utilities 26,400 Rent 79,200 Lubricants 19,800 Property taxes 19,800 $244,200    $396,000 It is estimated that direct labor hours worked each month will range from 29,700 to 39,600 hours. During March, 29,700...
Campbell Soup Company estimates that 240,000 direct labor hours will be worked during 2018 in the...
Campbell Soup Company estimates that 240,000 direct labor hours will be worked during 2018 in the Mixing Department. On this basis, the following budgeted manufacturing overhead data are computed: Variable Overhead Costs Fixed Overhead Costs Indirect labor $96,000 Supervision $73,200 Indirect materials 72,000 Depreciation 62,280 Repairs 21,600 Insurance 51,900 Utilities 7,200 Rent 20,760 $196,800    $208,140 It is estimated that direct labor hours worked each month will range from 5,000 to 20,000 hours. During June, 15,000 direct labor hours were worked...
One serving of Campbell Soup company is Campbell's pork and beans contains 5 g of protein...
One serving of Campbell Soup company is Campbell's pork and beans contains 5 g of protein and 21 g of carbohydrates a typical slice. a typical slice of white bread provides 2 g of protein and 11 g of carbohydrates per slice the US RDA is 60 g of protein each day. a) I am planning a meal of beans on toast and wish to have it supply 1/2 of the RDA for protein and 139 g of carbohydrates. how...
Paul & Griffon manufactures and markets many products you use every day. In 2016, sales for...
Paul & Griffon manufactures and markets many products you use every day. In 2016, sales for the company were $85,500 (all amounts in millions). The annual report did not report the amount of credit sales, so we will assume that all sales were on credit. The average gross profit percentage was 49.7 percent. Account balances for the year follow: Beginning Ending Accounts receivable (net) $ 6,400 $ 6,800 Inventory 7,180 7,200 Required: Compute the following turnover ratios. By dividing 365...
Pet Food Your company manufactures two products, bird food and dog food. You have two departments:...
Pet Food Your company manufactures two products, bird food and dog food. You have two departments: blending and packaging. The requirements in each department for manufacturing a ton of either product are shown in hours in the following table: Hours per Tons of Product Blending          Packaging Bird food         0.25                      0.10 Dog food          0.15                      0.30 Each department has 8 hours available per day. Bird food is made from the three ingredients: seeds, ground stones, and cereal. Dog food...
17. Campbell Soup common stock pays dividends once a year. The company just paid a dividend...
17. Campbell Soup common stock pays dividends once a year. The company just paid a dividend of $1.10 and management expects this dividend to grow at a constant rate of 6.5 percent. If the required rate of return is 10 percent, how much would you pay for this stock? Group of answer choices a. $33.47 b. $36.25 c. $38.62 d. $31.43
Company: Campbell Soup What inventory costing method does the company use (LIFO/FIFO, etc) in 2018? Do...
Company: Campbell Soup What inventory costing method does the company use (LIFO/FIFO, etc) in 2018? Do you think it is appropriate? What are the key raw materials in 2018? Are there supply or price change risks associated with the raw materials?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT