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	$	1,098		Equipment	$	478
Accumulated Amortization		733		Goodwill		583
Accumulated Depreciation		488		Inventories		338
Allowance for Doubtful Accounts		38		Land		8
Buildings		228		Licensing Rights		1,867
Cash and Cash Equivalents		668		Prepaid Rent		343

Required:

1. Prepare the asset section of a classified balance sheet for Hashey, Inc.
2. Using Hasbro’s 2015 Net Sales Revenue of $4,610 (million), its Net Fixed Assets of $218 (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

1)

Balance Sheet (Partial)

December 27,2015

(in millions)

Assets
Current Assets:
Cash and cash equivalents		$668
Accounts Receivable	$1,098
Allowance for doubtful accounts	(38)	1,060
Inventory		338
Prepaids		343
Total Current Assets		2,409
Property, Plant and Equipment
Land		8
Buildings		228
Equipment		478
Property, Plant, and Equipment(at cost)		714
Accumulated Depreciation		(488)
Total Property, Plant and Equipment(Net)		226
Other Assets
Goodwill		583
Licensing Rights		1,867
Accumulated Ammortization		(733)
Total Other Assets		1,717
Total Assets (2409 + 226 + 1717)		4,352

2) Given,

Net Sales Revenue = $4,610 million

Net fixed assets at December 28, 2014 = $218 million

Net fixed assets at December 27, 2015 = $226 million

Average fixed assets = ($218 + $226)/2 = $222 million

Fixed Assets Turnover ratio for 2015 = Net Sales Revenue/Average fixed assets

                                                                  = 4,610/222

                                                                   =20.77