Question

Complete Chapter 3 Application Questions & Exercises: #2 found on page 98.

Use Exhibit 3.8 found on page 91 to complete the 20 financial ratios for Campbell Soup (Case #15 - p. C91-C101). Use the financial information located on C98-C100 to calculate each ratio. You will need a cite for the data you use. See pages 418 – 421 in your textbook for formulas. Use the table below.

http://investor.campbellsoupcompany.com/phoenix.zhtml?c=88650&p=irol-reportsAnnual ***this is just for up to date reference for the annual report****

strategic management: text cases- Dess, McNamara, Aisner, 9e, recognizing a firms Intellectual assets *** this is the book to reference****

Number	Ratio Name	Formula	Values Used	Calculated Ratio
1	Current Ratio	Current Assets / Current Liabilities	2,296,000/ 3,594,000	.63
2	Quick Ratio	Current Assets- Inventory / Current Liabilities	1,199,000/ 3,594,000	.33
3	Cash Ratio	Cash / Current Liabilities	226,000/ 3,594,000	.57
4	Total Debt Ratio	Total Assets- Total Equity/ Total Assets
5	Debt to Equity Ratio	Total Debt/ Total Equity
6	Equity Multiplier	Total Assets / Total Equity
7
8
9
10
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14
15
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20

CAMPBELL SOUP COMPANY Consolidated Balance SIh (milions, ercept per share amounts) July 29, uly 30 Total current assets assets, net of depreciation Other intangible assets, net of amortization.. . Other assets ($77 as of 2018 and $51 as of 2017 attributable to variable interest entity) Short-ter borrowings.... Payable to suppliers and others .. . .. . . .. .$1,896 1037 . .. . .-... . . .. Commitments and contingencies equity Preferred stock: authorized 40 shares; none issued Capital stock in treasury, at cost. Accumulated other comprehensive loss (1.066) Total Campbell Soup Company shareholders' equity ee accompanying Notes to Consolidated Financial Statements

Answer 1

Calculation of Various Ratios of Campbell Soup Company:- (Amounts in millions)

4) Total Debt Ratio = (Total Assets - Total Equity)/Total Assets

Total Assets = Total Current Assets + Plant Assets +Goodwill+ Other Intangible Assets + Other Assets

= $2,296 + $3,233 +$4,580 + $4,196 + $224= $14,529

Total Equity = Total Shareholders Equity + Non Controlling Interests

= $1,364 + $9 = $1,373

Total Debt Ratio = ($14,529 - $1,373)/ $14,529 = $13,156/$14,529 =0.91

5)Debt To Equity Ratio = Total Debt/ Total Equity

Total Debt = Total Current Liabilities + Long Term Debt + Deferred Tax + Other Liabilities

=$3,594 +$7,998 +$995+ $569 =$13,156

Total Equity = Total shareholder' Equity +Non Controlling Interests

=$1,364+ $9 =$1,373

Debt To Equity Ratio = $13,156/ $1,373 = 9.58

6) Equity Multiplier = Total Assets / Total Equity

Total Assets = Total Current Assets + Plant Assets +Goodwill+ Other Intangible Assets + Other Assets

= $2,296 + $3,233 +$4,580 + $4,196 + $224= $14,529

Total Equity = Total shareholder' Equity +Non Controlling Interests

=$1,364+ $9 =$1,373

Equity Multiplier = $14,529 / $1,373 = 10.58