Question
In: Accounting
The following information is taken from publicly traded retailers. The data comes from the balance sheet,...
| The following information is taken from publicly traded retailers. The data comes from the balance sheet, income statement, and Item 2 on the companies' Form 10-K filings. Use the information to answer the requirements. | |||||
| Company | Revenue (Millions) | COGS | Average Inventory | Retail SQ footage (000s) | Number of Stores |
| Autozone (AZO) | $ 11,221 | $ 4,902 | $ 3,913 | $ 41,066 | $ 6,202 |
| Costco (COST) | $ 151,576 | $ 121,715 | $ 10,437 | $ 110,700 | $ 762 |
| Home Depot (HD) | $ 108,203 | $ 71,043 | $ 13,337 | $ 237,700 | $ 2,287 |
| Lowe's (LOW) | $ 71,309 | $ 48,396 | $ 11,977 | $ 209,000 | $ 2,015 |
| O'Reilly (ORLY) | $ 9,536 | $ 4,237 | $ 3,102 | $ 38,455 | $ 5,219 |
| Walmart (WMT) | $ 511,729 | $ 374,623 | $ 44,026 | $ 1,129,000 | $ 11,361 |
| a. Compute the days inventory outstanding (DIO) for each company | |||||
| b. Compute the gross profit margin for each company | |||||
| c. Compare the DIO and gross profit margin for each of the three combinations of competitors. What do we observe? How are the two ratios related? | |||||
| d. Compute the following two nontraditional efficiency metrics: Revenue per square foot and Revenue per store. What do we observe? | |||||
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Evaluating Turnover and Nontraditional Efficiency Ratios Across Industries The following information is taken from publicly traded...
Evaluating Turnover and Nontraditional Efficiency Ratios
Across Industries
The following information is taken from publicly traded retailers.
The data come from the balance sheet, income statement, and Item 2
on the companies’ Form 10‑K filings. Use the information to answer
the requirements.
Average
Retail SQ
# of
$ millions
Revenue
COGS
Inventory
Footage (000s)
Stores
Autozone
$10,660
$4,902
$3,717
41,066
6,202
Costco
134,497
121,715
9,915
110,700
762
Home Depot
102,793
71,043
12,670
237,700
2,287
Lowe’s
67,744
48,396
11,378
209,000
2,015...
The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of...
The following balance sheet information (in $ millions) comes
from the Annual Report to Shareholders of Merry International Inc.
for the 2021 fiscal year. The following additional information from
an analysis of Merry's financial position is available:
Current ratio = 1.352397; Acid-test ratio = 0.5771067; Debt to
equity ratio = 1.6157180.
Required: Compute the missing amounts in the balance sheet.
(Enter your answers in millions of dollars. Round your intermediate
and final answers to the nearest whole dollar.)
MERRY INTERNATIONAL...
The following data are taken from the balance sheet at the end of the current year....
The following data are taken from the balance sheet at the end
of the current year.
Cash
$154,000
Accounts receivable
210,000
Inventory
240,000
Prepaid expenses
15,000
Marketable securities
350,000
Property, plant, and equipment
375,000
Accounts payable
245,000
Accrued liabilities
4,000
Income tax payable
10,000
Notes payable, short-term
85,000
Determine the working capital.
Please access the balance sheet of a publicly traded company on the internet, and discuss if...
Please access the balance sheet of a publicly traded company on
the internet, and discuss if the company has recorded any
impairment of long-term assets and how it is disclosed in the
notes.
The following information is taken from the financial statements of Knights, Inc. From the balance sheet:...
The following information is taken from the financial statements
of Knights, Inc.
From the balance sheet:
Cash
$ 30,000
Accounts receivable
150,000
Inventory
200,000
Plant assets (net of accumulated depreciation)
500,000
Current liabilities
150,000
Total stockholders’ equity
300,000
Total assets
1,000,000
From the income statement:
Net sales
$1,500,000
Cost of goods sold
1,080,000
Operating expenses
315,000
Interest expense
84,000
Income tax expense
6,000
Net income
15,000
From the statement of cash flows:
Net cash provided by operating activities (including interest...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$424,100
$324,000
Marketable securities
491,000
364,500
Accounts and notes receivable
(net)
200,900
121,500
Inventories
982,100
658,800
Prepaid expenses
505,900
421,200
Total current assets
$2,604,000
$1,890,000
Current liabilities:
Accounts and notes payable
(short-term)
$359,600
$378,000
Accrued liabilities
260,400
162,000
Total current liabilities
$620,000
$540,000
a. Determine for each year (1) the working
capital, (2)...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$340,500
$268,800
Marketable securities
394,200
302,400
Accounts and notes receivable
(net)
161,300
100,800
Inventories
1,056,000
683,200
Prepaid expenses
544,000
436,800
Total current assets
$2,496,000
$1,792,000
Current liabilities:
Accounts and notes payable
(short-term)
$371,200
$392,000
Accrued liabilities
268,800
168,000
Total current liabilities
$640,000
$560,000
a. Determine for each year (1) the working
capital, (2)...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$492,500
$403,200
Marketable securities
570,200
453,600
Accounts and notes receivable
(net)
233,300
151,200
Inventories
617,800
422,700
Prepaid expenses
318,200
270,300
Total current assets
$2,232,000
$1,701,000
Current liabilities:
Accounts and notes payable
(short-term)
$417,600
$441,000
Accrued liabilities
302,400
189,000
Total current liabilities
$720,000
$630,000
a. Determine for each year (1) the working
capital, (2)...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$297,200
$224,000
Marketable securities
344,100
252,000
Accounts and notes receivable
(net)
140,700
84,000
Inventories
880,400
658,800
Prepaid expenses
453,600
421,200
Total current assets
$2,116,000
$1,640,000
Current liabilities:
Accounts and notes payable
(short-term)
$266,800
$280,000
Accrued liabilities
193,200
120,000
Total current liabilities
$460,000
$400,000
a. Determine for each year (1) the working
capital, (2)...
The following data were taken from the balance sheet of Nilo Company at the end of...
The following data were taken from the balance sheet of Nilo
Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$458,700
$347,200
Marketable securities
531,100
390,600
Accounts and notes receivable
(net)
217,200
130,200
Inventories
1,546,400
1,134,600
Prepaid expenses
796,600
725,400
Total current assets
$3,550,000
$2,728,000
Current liabilities:
Accounts and notes payable
(short-term)
$411,800
$434,000
Accrued liabilities
298,200
186,000
Total current liabilities
$710,000
$620,000
a. Determine for each year (1) the working
capital, (2)...
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