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home / study / business / finance / finance questions and answers / Financial Statement Analysis Case - Kellogg Company -Chapter 3 Compute The Percentage Change ... Question: Financial statement analysis case - Kellogg Company -Chapter 3 compute the percentage change in s... financial statement analysis case - Kellogg Company -Chapter 3 compute the percentage change in sales, operating profit, net cash flow less capital expenditures, and net earnings from year to year for the years presented and evaluate Kellogg's performance. which trend seems most favorable: which trend seems least favorable? what are the implications of thesese trends for Kellogg's sustainable performance objectives
2014 2013 2012
sales 14,580 14,792 14,197
Gross profit % 34.73 41.26 38.28
operating profit 1,024 2,837 1,562
net cash flow less CE 1,211 1,170 1,225 CE = capital expenditures
net earnings 633 1,808 961
Homework Answers
% change in Sales 2012 14197 2013 14792 595 2014 14580 212 (14792-14197) (14580-14792) 1.43 (-212/14792) Downward Sales Cha nge in amount 4.19 (595/14197) Upward Change in % Trend shown % change in Operating Profit Operating profit Operating profit as % of Sales Change Observed Change in % 2012 1562 11.00 2014 1024 7.02 12.16 -63.38 (8.18/11) 100 (-12.16/19.18) 100 Downward 2013 2837 19.18 8.18 74.32 Trend shown Upward
Trend shown Upward Downward % change in Net cash flows after CE 2012 1225 8.63 Net CF less CE Net CF after CE as % of Sales Change Observed Change in % 2014 1211 8.31 0.40 5.01 (-0.72/8.63)*100(0.4/7.91)*100 pward 2013 1170 7.91 -0.72 -8.33 Trend shown Downward Through above tables, it can be seen that change in sales & Operating profit shows similar trend. During 2013, Sales & operating profit weregoing well, in 2014 it shows downward trend, while Net cashflows are goin upward in 2014 Hence, trend for Net cashflows is favourable than observed for Sales & Operating income Therefore it is advisable to company to target trends displayed in 2013 for Sales & Operating profit whereas it should follow 2014 trend for Net cashflows for its performance obiectives
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financial statement analysis case - Kellogg Company -Chapter 3 compute the percentage change in sales, operating...
financial statement analysis case - Kellogg Company -Chapter 3 compute the percentage change in sales, operating profit, net cash flow less capital expenditures, and net earnings from year to year for the years presented and evaluate Kellogg's performance. which trend seems most favorable: which trend seems least favorable? what are the implications of thesese trends for Kellogg's sustainable performance objectives 2014 2013 2012 sales 14,580 14,792 14,197 Gross profit % 34.73 41.26 38.28 operating profit 1,024 2,837 1,562 net cash flow...
Chapter 13: Analysis of Financial Statements In horizontal analysis of an income statement, a company reported...
Chapter 13: Analysis of Financial Statements In horizontal analysis of an income statement, a company reported sales of $50.000 at the end of Year 1 ar $40,000 at the end of Year 2. The percentage change in sales, using Year 1 as the base year, is a A 25% increase B. 25% decrease C. 20% increase D. 20% decrease In vertical analysis of a balance sheet, each asset amount is stated as a percent of A. total liabilities B. total...
Financial Statement Analysis Cases Financial Statement Analysis Case 1: Vertical Analyses of Johnson&Johnson and Pfizer Inc....
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Hello, Help me please to solve it, thank you. Financial Statement Analysis Case 2: Profitability Analysis...
Hello, Help me please to solve it, thank you.
Financial Statement Analysis Case 2: Profitability Analysis of Johnson & Johnson and Pfizer Inc. Pfizer Inc. is a U.S. products that are similar to those sold b Johnson's profitability ratios computed in Example 5B.1 in the chapter appendix. Use these an of Pfizer's income statements to answer the following questions: are similar to those sold by Johnson& Johnson. In the following, we present Johnson & d the excerpts company that manufactures...
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a. Compute the percentage change in sales, operating profit, net cash flow less capital expenditures b....
a. Compute the percentage change in sales, operating profit, net cash flow less capital expenditures b. Evaluate Kellogg's performance. Which trend seems most favorable? Which trend seems least favorable? What are the implications of these trends for Kellogg's sustainable performance objec Instructions and net earnings from year to year for the years presented tives? Explain Accounting, Analysis, and Principles The Amato Theater is nearing the end of the year and is preparing for a meeting with its bankers to discuss...
Please complete a financial statement analysis for the Paula assignment (see attached). The input columns are...
Please complete a financial statement analysis for the Paula
assignment (see attached). The input columns are hidden and there
is some additional information in yellow. Please common size and
perform some simple trend analysis by calculating the percent
change across the balance sheet (% d columns). Then create a
Statement of Cash Flows in the space provided and calculate the
listed ratios. Submit the Excel workbook here with clear formatting
and using Excel formulas and references
Balance Sheets Begin Cash...
Problem 1: Financial Statement Ratio Analysis (40 points total) Use the following financial statements for Dell,...
Problem 1: Financial Statement Ratio Analysis (40 points total) Use the following financial statements for Dell, Inc. to answer the questions which follow: BALANCE SHEET (SMil) 2017 10,298 2018 7,972 % 28.9 2019 9,092 % 34.3 40.2 Cash & Short Term Investments Accounts Receivable Inventory Other Current Assets Total Current Assets Net Fixed Assets Intangibles Other Long Term Assets Total Assets 6,152 24.0 660 2.6 2,829 11.3 19.939 76.6 2,409 8.7 0 0 3,287 14.7 25,635 100.0 7,693 27.9 1,180...
Question 50 (2 points) When doing vertical analysis of the balance sheet, to get percentages for...
Question 50 (2 points) When doing vertical analysis of the balance sheet, to get percentages for each balance sheet item, you divide the dollar amount for the particular balance sheet item by the dollar amount of total Liabilities. the dollar amount of total Stockholders' Equity. the dollar amount of total Assets plus total Liabilities plus total Stockholders' Equity. the dollar amount of total Assets OR total Liabilities plus total Stockholders' Equity Submit Quiz 38 of 50 questions saved year. Question...
I am trying to solve the mini case Financial Statement and Cash Flow Analysis chapter 2 page 64 & 65 question 6. The...
I am trying to solve the mini case Financial Statement and Cash
Flow Analysis chapter 2 page 64 & 65 question 6. The test book
is ISBN: 9781111222284 Introduction to Corporate Finance Third
Edition.
Chapter 2 Financial Statement and Cash Flow Analysis 65 Balance Sheet (in 000s) Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets $ 5,000 20,000 40,000 $ 65,000 135,000 $200,000 Accounts payable Notes payable Total current liabilities Long-term debt Stockholder equity Total liabilities...
Chapter 13: Analysis of Financial Statements In horizontal analysis of an income statement, a company reported sales of $50.000 at the end of Year 1 ar $40,000 at the end of Year 2. The percentage change in sales, using Year 1 as the base year, is a A 25% increase B. 25% decrease C. 20% increase D. 20% decrease In vertical analysis of a balance sheet, each asset amount is stated as a percent of A. total liabilities B. total...
Financial Statement Analysis Cases Financial Statement Analysis Case 1: Vertical Analyses of Johnson&Johnson and Pfizer Inc. Pfizer Inc. is a US company that manufactures and distributes pharmaceutical and consumer healthcare products that are similar to those sold by Johnson & Johnson. Use the excerpts of Johnson &Johnson's and Pfizer's income statements to answer the following questions: a. Compute each line item as a percentage of sales for both companies. b. If sales are used as a measure of size, which...
Hello, Help me please to solve it, thank you.
Financial Statement Analysis Case 2: Profitability Analysis of Johnson & Johnson and Pfizer Inc. Pfizer Inc. is a U.S. products that are similar to those sold b Johnson's profitability ratios computed in Example 5B.1 in the chapter appendix. Use these an of Pfizer's income statements to answer the following questions: are similar to those sold by Johnson& Johnson. In the following, we present Johnson & d the excerpts company that manufactures...
SELF-STUDY QUESTIONS Ansers are at the end of the chapter 1. Intra-entity analysis is useful to detect a) chunges in financial relationships and significant trends within the entity. (b)differences between entities within an industry (c) differences between entities. 7. In vertical analysis, the base amount foe depreciation expense is generally (a) net sales. (b) depreciation expense in a previous LO1) LO3 year. (c) gross proft. d) all of the above. (d) non-cunent assets L01) 2 Industry average analysis is useful...
a. Compute the percentage change in sales, operating profit, net cash flow less capital expenditures b. Evaluate Kellogg's performance. Which trend seems most favorable? Which trend seems least favorable? What are the implications of these trends for Kellogg's sustainable performance objec Instructions and net earnings from year to year for the years presented tives? Explain Accounting, Analysis, and Principles The Amato Theater is nearing the end of the year and is preparing for a meeting with its bankers to discuss...
Please complete a financial statement analysis for the Paula
assignment (see attached). The input columns are hidden and there
is some additional information in yellow. Please common size and
perform some simple trend analysis by calculating the percent
change across the balance sheet (% d columns). Then create a
Statement of Cash Flows in the space provided and calculate the
listed ratios. Submit the Excel workbook here with clear formatting
and using Excel formulas and references
Balance Sheets Begin Cash...
Problem 1: Financial Statement Ratio Analysis (40 points total) Use the following financial statements for Dell, Inc. to answer the questions which follow: BALANCE SHEET (SMil) 2017 10,298 2018 7,972 % 28.9 2019 9,092 % 34.3 40.2 Cash & Short Term Investments Accounts Receivable Inventory Other Current Assets Total Current Assets Net Fixed Assets Intangibles Other Long Term Assets Total Assets 6,152 24.0 660 2.6 2,829 11.3 19.939 76.6 2,409 8.7 0 0 3,287 14.7 25,635 100.0 7,693 27.9 1,180...
Question 50 (2 points) When doing vertical analysis of the balance sheet, to get percentages for each balance sheet item, you divide the dollar amount for the particular balance sheet item by the dollar amount of total Liabilities. the dollar amount of total Stockholders' Equity. the dollar amount of total Assets plus total Liabilities plus total Stockholders' Equity. the dollar amount of total Assets OR total Liabilities plus total Stockholders' Equity Submit Quiz 38 of 50 questions saved year. Question...
I am trying to solve the mini case Financial Statement and Cash
Flow Analysis chapter 2 page 64 & 65 question 6. The test book
is ISBN: 9781111222284 Introduction to Corporate Finance Third
Edition.
Chapter 2 Financial Statement and Cash Flow Analysis 65 Balance Sheet (in 000s) Cash Accounts receivable Inventory Total current assets Net fixed assets Total assets $ 5,000 20,000 40,000 $ 65,000 135,000 $200,000 Accounts payable Notes payable Total current liabilities Long-term debt Stockholder equity Total liabilities...
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