Question

The following is a list of account titles and amounts (in millions) reported at December 27, 2015, by Hashey, Inc. a leading manufacturer of games, toys, and interactive entertainment software for children and families:

Accounts Receivable	$	1,106		Equipment	$	486
Accumulated Amortization		741		Goodwill		591
Accumulated Depreciation		496		Inventories		346
Allowance for Doubtful Accounts		32		Land		11
Buildings		236		Licensing Rights		1,859
Cash and Cash Equivalents		676		Prepaid Rent		351

Required:

1. Prepare the asset section of a classified balance sheet for Hashey, Inc.
2. Using Hasbro’s 2015 Net Sales Revenue of $4,570 (million), its Net Fixed Assets of $226 (million) at December 28, 2014, and its Net Fixed Assets computed at December 27, 2015, calculate the fixed asset turnover ratio for 2015.

Answer 1

Balance sheet (Partial)
Assets:	(in million)	(in million)
Current Asset:
Cash & Cash Equivalent	$676
Account Receivable : $1106
Less: Allowance for doubtful Accounts : ($32)	$1074
Inventory	$346
Prepaid rent	$351
Total Current Assets		$2447
Property plant & Equipment:
Land	$11
Building : $236
Equipment : $486
Less: Accumulated Depreciation : ($496)	$226
Total Property plant & Equipment	$237
Intangible Assets:
Licensing rights : $1859
Goodwill : $591
Less: Accumulated Amortization ($741)
Total Intangible Assets	$1709
Total Fixed Asset ($237 + $1709)		$1946
Total Assets		$4393

Fixed assets turnover ratio = Net sale / Average fixed Assets

Net sale = $4570 million

Average fixed Assets = ($226 miilion + $1946 million) / 2 = $1086 million

Fixed assets turnover ratio = $4570 million / $1086 million = 4.21 times.