McCormick & Company, Inc. is one of the worlds leading producers of spices, herbs, seasonings, condiments, and
Question:
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Refer to the information for McCormick above. Additional information for 2013 is as follows (amounts in millions):
Total credit sales (all on credit) .... $4,123.4
Costs of goods sold ......... 2,457.6
Net income ........... 389.0
Required:
Compute the following ratios for 2013. Provide a brief description of what each ratio reveals about McCormick.
1. Return on common equity
2. Debt-to-assets
3. Debt-to-equity
4. Current
5. Quick (McCormick uses cash and equivalents, short-term securities, and receivables in their quick ratio calculation.)
6. Inventory turnover days
7. Accounts receivable turnover days
8. Accounts payable turnover days
9. Operating cycle (in days)
10. Total asset turnover
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that... Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
Step by Step Answer:
McCormicks 2013 ratios are shown below amounts in millions of dollars Students should provide at lea...View the full answer
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
