Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Financial Accounting Expert

The following table gives abbreviated balance sheets and income statements for Estee Lauder Companies. Suppose a corporate tax rate of 32.38%.

($ in millions)

End of Year State of Year

Balance Sheet

Assets

Current Assets:

Cash and marketable securities $1,303 $1,126
Accounts receivable 996 751
Inventories 1,001 832
Other current assets 497 433
Total Current Assets $3,797 $3,142

Fixed Assets:

Tangible fixed assets

Property, plant, and equipment 2,867 2,530
Less accumulated depreciation 1,714 1,496
Net fixed assets 1,153 1,034
Other long-term assets 1,449 1,196
Total assets $6,399 $5,372
Liabilities and Shareholders' Equity

Current liabilities:

Debt due for repayment $143 $28
Accounts payable 1,810 1,554
Total current liabilities 1,953 1,582
Long-term debt 1,085 1,210
Other long-term liabilities 626 615
Total liabilities 3,664 3,407
Total Shareholders' equity 2,735 1,965
Total liabilities and shareholders’, equity $6,399 $5,372

Income Statement:

Net Sales $8,815
Cost of goods sold 1,942
Selling, general, and administrative expenses 5,491
Depreciation 303
Earnings before interest and taxes(EBIT) 1,079
Interest expense 69
Taxable income 1,010
Tax 327
Net Income $683
Dividends 153
Addition to retained earnings  530

a.) find out the return on assets.

b.) find out the operating profit margin.

c.) find out the sales-to-assets ratio.

d.) find out the inventory turnover.

e.) find out the debit-equity ratio.

f.) find out the current ratio.

g.) find out the quick ratio.

Financial Accounting, Accounting

  • Category:- Financial Accounting
  • Reference No.:- M93472

Have any Question? 


Related Questions in Financial Accounting

On november 1 2016 the firm of sails welch and greenberg

On November 1, 2016, the firm of Sails, Welch, and Greenberg decided to liquidate their partnership. The partners have capital balances of $58,200, $72,490, and $9,940, respectively. The cash balance is $31,570, the book ...

George hincapie inc manufactures cycling equipment recently

George Hincapie Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a care ...

Understanding healthcare financial managementproblem

UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT PROBLEM 1 Calculate the after-tax cost of debt for the Wallace Clinic, a for-profit healthcare provider, assuming that the coupon rate set on its debt is 11 percent and its t ...

A company purchases inventory during the year in four

A company purchases inventory during the year in four batches, with unit and price amounts shown below: Batch 1 – 9,500 units @ $2.10 per unit Batch 2 – 4,300 units @ $2.08 per unit Batch 3 – 3,600 units @ $2.04 per unit ...

Primus consulting group primus is a firm of consultants

PRIMUS CONSULTING GROUP Primus is a firm of consultants that focuses on process reengineering and quality improvement initiatives. Northwood industries have asked Primus to conduct a study aimed at improving on- time del ...

A-corp owns 100 of b-corp and c-corp a-corp sells its

A-Corp owns 100% of B-Corp and C-Corp. A-Corp sells its C-Corp stock to D-Corp during 2014. All letters refer to domestic corporations that own one class of stock and are includable. -Does A-Corp's sale of it's C-Corp st ...

Identify the following expenditures as capital expenditures

Identify the following expenditures as capital expenditures or revenue expenditures: a. Immediately after acquiring a new delivery truck, paid $260 to have the name of the store and other advertising material painted on ...

Van pelt company uses the average cost method of process

Van Pelt Company uses the average cost method of process costing. The production report for the Mixing department follows: In process, begininning of period                                                                 ...

In the current year raven sold machinery with a fair market

In the current year, Raven sold machinery with a fair market value of $200,000. The machinery's original basis was $190,000 and Raven's accumulated depreciation on the machine was $40,000. Raven received $50,000 in the c ...

The manufacturing overhead budget of paparella corporation

The manufacturing overhead budget of Paparella Corporation is based on budgeted direct labor-hours. The November direct labor budget indicates that 6,000 direct labor-hours will be required in that month. The variable ov ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate