Question

In: Accounting

The following financial data are adapted from the annual reports of Bechuram Inc.: Bechuram Inc. Four...

The following financial data are adapted from the annual reports of Bechuram Inc.:

Bechuram Inc.
Four -Year Select Financial Data
Years Ended January 31, 2017, 2016, 2015,2014

Operating Results

2017

2016

2015

2014

Net Sales

$13,848

$13,673

$11,635

$9,054

COGS (excluding depreciation and amortization)

9704

8599

6775

5318

Interest Expense

109

Income from Operations

338

1445

1817

1333

Net Earnings

-8

877

1127

824

Cash Dividends

Financial Position:

Merchandise Inventory

1677

1904

1462

1056

Total Assets

7591

7012

5189

3963

Current Ratio

1.48:1

0.95:1

1.25:1

1.20:1

Shareholders' Equity

3010

2928

2630

1574

Average number of shares of common stock outstanding (in thousands)

860

879

895

576

Compute the following ratios for 2015 through 2017 and evaluate Bechuram’s operating results. Are operating results strong or weak? Did they improve or deteriorate during the three-year period? Your analysis will reveal a clear trend.

a. Inventory turnover (assume occupancy expenses are included in cost of goods sold)

b. Gross profit percentage

c. Operating income (profit) percentage

d. Return on sales

e. Asset turnover

f. Return on assets

g. Leverage ratio

h. Return on shareholders’ equity

i. Times-interest-earned ratio

j. Earnings per share

Solutions

Expert Solution

please comment down for any clarification.

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

a. The following is adapted from Financial Management for Executives (2nd ed.): La Verne Company reports...

a. The following is adapted from Financial Management for Executives (2nd ed.): La Verne Company reports the sales and collection information below. Assume La Verne Company collects 20 percent of its sales in the month of the sale, 50 percent the next month, 25 percent the following month, and 5 percent is never collected. Compute the company’s cash collections for each month from January through April. Nov. Dec. Jan. Feb. Mar. Apr. Sales. . . . $200,000 $325,000 $250,000 $240,000...

Robots, Inc. reports the following financial data for the year:

1) Robots, Inc. reports the following financial data for the year: Gross income from sales and services 200k Wages, cost recovery and other expenses 180k Dividend income from at least 20% owned Corp. 40k Net Operating Loss Carryover 20k Capital Losses 10k Charitable Contribution Carryover 7k Current charitable contributions11k a) What is Robot's charitable contribution deduction? b) How much of the charitable contribution carryover is used up c) What is taxable income? d) What is the dividend received deduction?

The following table contains data obtained from annual reports of Reiff Inc, a sandal manufacturer and...

The following table contains data obtained from annual reports of Reiff Inc, a sandal manufacturer and retailer: Years ended December 31 (in $thousands) 2014 2015 2016 Sales $535,788 $569,413 $592,696 COGS ($329,172) ($349,597) ($362,109) Gross profit $206,616 $219,816 $230,587 LIFO Liquidation $2,973 $3,337 $5,890 (net of taxes) Required: a. Compute the gross margin percentage for each year 2014 - 2016. b. REIFF INC. disclosed the effect of LIFO liquidations net of income tax. Assuming a tax rate of 30%, recompute...

The following is adapted from Financial Management for Executives (2nd ed.): Procter and Gamble (P&G) reports...

The following is adapted from Financial Management for Executives (2nd ed.): Procter and Gamble (P&G) reports the following information in a recent financial statement (the figures represent millions except for Earnings per share and Dividends per share). Use the below information to compute P&G’s sustainable growth rate for Years 2 and 3 and comment on P&G’s sustainable growth rate relative to its actual rate of growth. Year 1 Year 2 Year 3 Sales $56,741 $68,222 $83,503 Net income 8,684 10,340...

The following table presents financial data from 2018 annual reports of six pharmaceuticals companies. The market...

The following table presents financial data from 2018 annual reports of six pharmaceuticals companies. The market value of equity for five companies is also given. All numbers are in millions of dollars. Novartis had a book value of $1,349 million in 2017. In addition, Novartis had 4,900 million shares outstanding throughout the year. Company Market value of equity Price/Book Sales revenue R&D Net Income Acme $8,096.71 5.6 $1,571.0 $307.0 $406.0 Aspen Pharma 1,379.00 3.6 152.0 101.0 15.0 Pfizer 2,233.60 4.6...

The following data (in millions) were adapted from recent financial statements of CVS Health Corporation (CVS)...

The following data (in millions) were adapted from recent financial statements of CVS Health Corporation (CVS) 1. Compute the accounts receivable turnover for Years 1 and 2. Round to one decimal place. Accounts Receivable Turnover Year 2 Year 1 2. Compute the number of days' sales in receivables for Years 1 and 2. Assume there are 365 days in the year, and round to the nearest day. Number of Days' Sales in Receivables Year 2 days Year 1 days 3....

Income Statement, Retained Earnings Statement, and Balance Sheet The following financial data were adapted from a...

Income Statement, Retained Earnings Statement, and Balance Sheet The following financial data were adapted from a recent annual report of Target Corporation for the year ending January 31. In millions Accounts payable $ 7,759 Cash 2,210 Common stock 53 Cost of goods sold 51,278 Debt and other borrowings 12,705 Income tax expense 1,204 Interest expense 882 Inventories 8,790 Other assets 4,446 Other expenses 6,214 Other liabilities 6,943 Property, plant, and equipment 25,958 Sales 72,618 Selling, general, and administrative expenses 14,676...

Jacquie Inc. reports the following annual cost data for its single product. Normal production and sales...

Jacquie Inc. reports the following annual cost data for its single product. Normal production and sales level 67,000 units Sales price $ 56.70 per unit Direct materials $ 9.70 per unit Direct labor $ 7.20 per unit Variable overhead $ 11.70 per unit Fixed overhead $ 944,700 in total Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal places.) Production volume Cost of goods sold: 67,000 units 94,000 units Cost of goods sold per...

1. Open Kellogg's Annual Reports See Supplemental Financial Data and find the balance in Allowance for...

1. Open Kellogg's Annual Reports See Supplemental Financial Data and find the balance in Allowance for Doubtful Accounts for the most recent year. 2. Sigmund Company completed the following transactions in 2012: Jan. 9 Sold merchandise on account to Roger’s Supply, $1,200. Jan. 15 Wrote off the account of Pete Ramirez as uncollectible because of his death, $500. Mar. 17 Received $450 from Roland Co., whose account had been written off in 2011. The account was reinstated and the collection recorded....

Exercise 19-12 Absorption costing and overproduction LO C1 Jacquie Inc. reports the following annual cost data...

Exercise 19-12 Absorption costing and overproduction LO C1 Jacquie Inc. reports the following annual cost data for its single product. Normal production and sales level 74,000 units Sales price $ 57.40 per unit Direct materials $ 10.40 per unit Direct labor $ 7.90 per unit Variable overhead $ 12.40 per unit Fixed overhead $ 1,198,800 in total Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal place.) Production volume Cost of goods sold: 74,000...

Subjects