ACCT week 4

RedCompanyChapter4HomeworkForm.xls

Ex. 4-1 & 4-2 & 4-3


	Name:				Section:
			#:
	Red Company Chapter 4 - Homework
Exercise 4-1 Gross Profit Margin % (a driver of Profitability)
A.	1. Numerator line item:				Amt.
	2. Denominator line item:				Amt.
B.	2017 Gross Profit Margin %			%
	2016 Gross Profit Margin % 36.56%
C.	The Gross Profit Margin % is a(n): (click the drop-down button and select from the list)
D.	Which year had a better Gross Profit Margin %? (click the drop-down button and select from the list)
Exercise 4-2 Operating Profit Margin % (a driver of Profitability)
A.	1. Numerator line item:				Amt.
	2. Denominator line item:				Amt.
B.	2017 Operating Profit Margin %			%
	2016 Operating Profit Margin % 13.98%
C.	The Operating Profit Margin % is a(n): (click the drop-down button and select from the list)
D.	Which year had a better Operating Profit Margin %? (click the drop-down button and select from the list)
Exercise 4-3 Accounts Receivable Turnover Ratio (a driver of Efficiency)
Number of Days' Sales in Receivables
A.	1. Numerator line item:				Amt.
	2. Denominator line item:	Average Receivables, net: Customers			Amt: Beg Yr	$157,908
					End Yr	$176,008
B.	2017 Accounts Receivable Turnover Ratio				Times
	2016 Accounts Receivable Turnover Ratio 14.54 Times
C.	The Accounts Receivable Turnover Ratio is a(n): (click the drop-down button and select from the list)
D.	Which year had a better Accounts Receivable Turnover Ratio? (click the drop-down button)


	Name:		Section:
		#:
	Red Company Chapter 4 - Homework
Exercise 4-3 (continued)
E.	2017 Number of Days' Sales in Receivables		Days
	2016 Number of Days' Sales in Receivables 25.10 Days
F.	The Number of Days' Sales in Receivables is a(n): (click the drop-down button and select from the list)
G.	Which year had a better Number of Days' Sales in Receivables? (click the drop-down button)
Exercise 4-4 Inventory Turnover Ratio (a driver of Efficiency)
Number of Days' Sales in Inventory
A.	1. Numerator line item:		Amt.
	2. Denominator line item:		Amt: Beg Yr
			End Yr
B.	2017 Inventory Turnover Ratio		Times
	2016 Inventory Turnover Ratio 4.73 Times
C.	The Inventory Turnover Ratio is a(n): (click the drop-down button and select from the list)
D.	Which year had a better Inventory Turnover Ratio? (click the drop-down button)
E.	2017 Number of Days' Sales in Inventory		Days
	2016 Number of Days' Sales in Inventory 77.17 Days
F.	The Number of Days' Sales in Inventory is a(n): (click the drop-down button and select from the list)
G.	Which year had a better Number of Days' Sales in Inventory? (click the drop-down button)
Exercise 4-5 Accounts Payable Turnover Ratio
Number of Days' Purchases in Accounts Payable
A.	1. Numerator line item:		Amt.
	2. Denominator line item:		Amt: Beg Yr
			End Yr
B.	2017 Accounts Payable Turnover Ratio		Times
	2016 Accounts Payable Turnover Ratio 9.29 Times


	Name:		Section:
		#:
	Red Company Chapter 4 - Homework
Exercise 4-5 (continued)
C.	The Accounts Payable Turnover Ratio is a(n): (click the drop-down button and select from the list)
D.	Which year had a better Accounts Payable Turnover Ratio? (click the drop-down button)
E.	2017 Number of Days' Purchases in Accounts Payable			Days
	2016 Number of Days' Purchases in Accounts Payable 39.29 Days
F.	The Number of Days' Sales Purchases in Accounts Payable is a(n): (click the drop-down button)
G.	Which year had a better Number of Days' Purchases in Accounts Payable? (click the drop-down button)
Exercise 4-6 Cash-to-Cash Cycle
A.	Cash-to-Cash Days for 2017 and 2016
			2017 Days	2016 Days
less
	Net Number of Days Cash is Invested in Inventory
plus
	Cash-to-Cash Days
B.	Discussion of Toro's Cash-to-Cash Days for 2017 compared to 2016


	Name:				Section:
			#:
	Red Company Chapter 4 - Homework
Exercise 4-7 Fixed Asset Turnover Ratio (a driver of Efficiency)
A.	1. Numerator line item:				Amt.
	2. Denominator line item:				Amt: Beg Yr
					End Yr
B.	2017 Fixed Asset Turnover Ratio			Times
	2016 Fixed Asset Turnover Ratio 10.70 Times
C.	The Fixed Asset Turnover Ratio is a(n): (click the drop-down button and select from the list)
D.	Which year had a better Fixed Asset Turnover Ratio? (click the drop-down button and select from the list)
Exercise 4-8 Debt% (an indicator of Leverage at year-end)
A.	1. Schedule to calculate the numerator, Total Liabilities for 2017:
	Total Current Liabilities
	Long-term debt, less current portion
	Deferred revenue
	Deferred income taxes
	Other long-term liabilities
		Total Liabilities
	2. Denominator line item:				Amt.
B.	2017 Debt %			%
	2016 Debt % 60.27%
C.	The Debt % is a(n): (click the drop-down button and select from the list)
D.	Which year had more financial leverage? (click the drop-down button and select from the list)


	Name:				Section:
			#:
	Red Company Chapter 4 - Homework
Exercise 4-9 Debt-to-Equity Ratio (an indicator of Leverage at year-end)
A.	1. Numerator line item:	Total Liabilities answer to Exercise 4-8 A.1			Amt.
	2. Denominator line item:				Amt.
B.	2017 Debt-to-Equity Ratio			Times
	2016 Debt-to-Equity Ratio 1.52 Times
C.	The Debt-to-Equity Ratio is a(n): (click the drop-down button and select from the list)
D.	Which year had more financial leverage? (click the drop-down button and select from the list)
Exercise 4-10 Times Interest Earned Ratio (an indicator of interest coverage)
A.	1. Schedule to calculate the numerator, Earnings before Interest and Taxes for 2017:
	Net Earnings
plus
plus
	Earnings before Interest and Taxes
	2. Denominator line item:				Amt.
B.	2017 Times Interest Earned Ratio			Times
	2016 Times Interest Earned Ratio 18.09 Times
C.	The Times Interest Earned Ratio is a(n): (click the drop-down button and select from the list)
D.	Which year had a better Times Interest Earned Ratio? (click the drop-down button and select from the list)