The Hershey Company is one of the worlds leading producers of chocolates, candies, and confections. It sells

Question:

The Hershey Company is one of the world€™s leading producers of chocolates, candies, and confections. It sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey€™s consolidated balance sheets for 2012 and 2013 follow.

Refer to the information for Hershey on the preceding page. Additional information for 2013 is as follows (amounts in millions):
Total credit sales (all on credit)...... $7,146.1
Costs of goods sold .......... 3,865.2
Net income ............... 820.5
Required:
Compute the following ratios for 2013. Provide a brief description of what each ratio reveals about Hershey.
1. Return on common equity
2. Debt-to-assets
3. Debt-to-equity
4. Current
5. Quick (Hershey 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 Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
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.