The corporate financial statement analysis project requires you to analyze a cor

Question

The corporate financial statement analysis project requires you to analyze a corporate annual report. The project is due in week/unit 8. You must turn in a photocopy of the balance sheet, income statement, and other information sources of your corporation along with this handout so the instructor can grade it.

Financial Statement Hershey’s https://www.sec.gov/Archives/edgar/data/47111/000004711116000095/a2015_formx10-kq4.htm#s679D3D7B6F69148EE19FCB313918A34E

Financial Ratios: Use the formulas from the textbook. 23. Working capital $________________ 24. Current ratio _________________ 25. Acid-test ratio _________________ 26. Accounts receivable turnover _________________ 27. Number of day's sales in receivable _________________ 28. Inventory turnover _________________ 29. Number of day's sales in inventory _________________ 30. Ratio of plant assets to long-term liabilities _________________ 31. Ratio of liabilities to stockholders' equity _________________ 32. Number of times interest charges earned _________________ 33. Number of times preferred dividends earned _________________ 34. Ratio of net sales to assets _________________ 35. Rate earned on total assets _________________ 36. Rate earned on stockholders' equity _________________ 37. Rate earned on common stockholders' equity _________________ 38. Earnings per share on common stock ________________

Explanation / Answer

Solution 23:

Working capital = Total current assets – total current liabilities

                                = 1,848,598,000 - 2,217,912,000

                                = -369,314,000

Solution 24:

Current Ratio = current assets / current liabilities

                          = 1,848,598,000 / 2,217,912,000

                          = 0.8335

Solution 25

Acid test ratio = (cash and cash equivalents + short term investments + receivables )/ total current liabilities

                                = (346,529,000 +0 +599,073,000) / 2,217,912,000

                                = 0.4263

Solution 26

Receivables turnover = Sales / average receivables

                                          =512,951,000 (599,073,000 + 596,940,000)/2

                                          = 512,951,000 / 598,006,500

                                          = 0.86

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