ACC 556 Strayer Horizontal and Financial Ratio of Sandhill Corporation Questions
Question Description
Current Attempt in Progress
Selected hypothetical financial data of Target and Wal-Mart for 2022 are presented here (in millions).
Target Corporation |
Wal-Mart |
||||||
---|---|---|---|---|---|---|---|
Income Statement Data for Year |
|||||||
Net sales |
$65,000 |
$406,000 |
|||||
Cost of goods sold |
46,000 |
306,000 |
|||||
|
14,800 |
76,000 |
|||||
Interest expense |
660 |
2,200 |
|||||
Other income (expense) |
(70 |
) |
(390 |
) |
|||
Income tax expense |
1,300 |
6,500 |
|||||
Net income |
$ 2,170 |
$ 14,910 |
|||||
Balance Sheet Data |
|||||||
Current assets |
$19,000 |
$49,000 |
|||||
Noncurrent assets |
26,100 |
123,000 |
|||||
Total assets |
$45,100 |
$172,000 |
|||||
Current liabilities |
$12,000 |
$55,000 |
|||||
Long-term debt |
17,400 |
43,000 |
|||||
|
15,700 |
74,000 |
|||||
|
$45,100 |
$172,000 |
|||||
Beginning-of-Year Balances |
|||||||
Total assets |
$45,000 |
$162,000 |
|||||
|
12,900 |
66,000 |
|||||
|
10,300 |
57,000 |
|||||
Total liabilities |
32,100 |
96,000 |
|||||
Other Data |
|||||||
|
$8,000 |
$3,800 |
|||||
|
6,800 |
33,200 |
|||||
|
5,900 |
27,400 |
|||||
|
1,700 |
11,600 |
|||||
Dividends |
510 |
4,200 |
For each company, compute the following ratios. (Round current ratio answers to 2 decimal places, e.g. 15.50, debt to assets ratio and free cash flow answers to 0 decimal places, e.g. 5,275 and all answers to 1 decimal place, e.g. 1.8 or 1.83%.)
Ratio | Target |
Wal-Mart |
||||||
---|---|---|---|---|---|---|---|---|
(1) |
Current ratio |
enter the current ratio |
:1 |
enter the current ratio |
:1 | |||
(2) |
Accounts receivable turnover |
enter accounts receivable turnover in times |
times |
enter accounts receivable turnover in times |
times | |||
(3) |
Average collection period |
enter average collection period in days |
days |
enter average collection period in days |
days | |||
(4) |
Inventory turnover |
enter inventory turnover in times |
times |
enter inventory turnover in times |
times | |||
(5) |
Days in inventory |
enter days in inventory ratio |
days |
enter days in inventory ratio |
days | |||
(6) |
Profit margin |
enter percentages |
% |
enter percentages |
% | |||
(7) |
Asset turnover |
enter asset turnover in times |
times |
enter asset turnover in times |
times | |||
(8) |
Return on assets |
enter percentages |
% |
enter percentages |
% | |||
(9) |
Return on common stockholders equity |
enter percentages |
% |
enter percentages |
% | |||
(10) |
Debt to assets ratio |
enter percentages |
% |
enter percentages |
% | |||
(11) |
Times interest earned |
enter times interest earned |
times |
enter times interest earned |
times | |||
(12) |
Free cash flow |
$enter a dollar amount |
$enter a dollar amount |
Current Attempt in Progress
Here are the comparative income statements of Sandhill Corporation.
SANDHILL CORPORATION Comparative Income Statement For the Years Ended December 31 |
||||
---|---|---|---|---|
2022 |
2021 |
|||
Net sales |
$628,300 |
$531,300 |
||
Cost of goods sold |
456,400 |
409,900 |
||
Gross Profit |
171,900 |
121,400 |
||
Operating expenses |
71,400 |
41,100 |
||
Net income |
$ 100,500 |
$ 80,300 |
(a)
Prepare a horizontal analysis of the income statement data for Sandhill Corporation, using 2021 as a base. (If amount and percentage are a decrease show the numbers as negative, e.g. -55,000, -20% or (55,000), (20%). Round percentages to 1 decimal place, e.g. 12.1%.)
SANDHILL CORPORATION Comparative Income Statement choose the accounting period |
||||||||
---|---|---|---|---|---|---|---|---|
Increase or (Decrease) During 2022 |
||||||||
2022 |
2021 |
Amount |
Percentage |
|||||
Net sales |
$628,300 |
$531,300 |
$enter a dollar amount |
enter percentages rounded to 1 decimal place |
% |
|||
Cost of goods sold |
456,400 |
409,900 |
enter a dollar amount |
enter percentages rounded to 1 decimal place |
% |
|||
Gross Profit |
171,900 |
121,400 |
enter a dollar amount |
enter percentages rounded to 1 decimal place |
% |
|||
Operating expenses |
71,400 |
41,100 |
enter a dollar amount |
enter percentages rounded to 1 decimal place |
% |
|||
Net income |
$ 100,500 |
$ 80,300 |
$enter a dollar amount |
enter percentages rounded to 1 decimal place |
% |
(b)
Prepare a vertical analysis of the income statement data for Sandhill Corporation for both years. (Round percentages to 1 decimal place, e.g. 12.1%.)
SANDHILL CORPORATION Condensed Income Statements choose the accounting period |
|||||||||
---|---|---|---|---|---|---|---|---|---|
2022 |
2021 |
||||||||
$ |
Percent |
$ |
Percent |
||||||
Net sales |
$628,300 |
enter percentages rounded to 1 decimal place |
% |
$531,300 |
enter percentages rounded to 1 decimal place |
% |
|||
Cost of goods sold |
456,400 |
enter percentages rounded to 1 decimal place |
% |
409,900 |
enter percentages rounded to 1 decimal place |
% |
|||
Gross Profit |
171,900 |
enter percentages rounded to 1 decimal place |
% |
121,400 |
enter percentages rounded to 1 decimal place |
% |
|||
Operating expenses |
71,400 |
enter percentages rounded to 1 decimal place |
% |
41,100 |
enter percentages rounded to 1 decimal place |
% |
|||
Net income |
$ 100,500 |
enter percentages rounded to 1 decimal place |
% |
$ 80,300 |
enter percentages rounded to 1 decimal place |
% |
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