Question

Assume the following is a list of account titles and amounts (in millions) reported at December 31, 2017, by Hasbro, Inc., a leading manufacturer of games, toys, and interactive entertainment software for children and families: Buildings and Improvements Prepaids and Other Current Assets Allowance for Doubtful Accounts Other Non-current Assets Cash and Cash Equivalents Accounts Receivable $ 191 167 36 196 610 624 Goodwill Machinery and Equipment Accumulated Depreciation Inventories Other Intangibles Land and Improvements $ 455 393 423 281

Answer 1

1) Asset section of a classified balance sheet as at 31st December 2017 :- Particulars Miln S Milns Current Assets :: Cash & Cash Equivalents 610.00 Accounts Receivable 624.00 Allowance for Doubtful Accounts (36.00) Inventory 281.00 Prepaid & Other Current Assets 167.00 Total Current Assets 1,646.00 Non Current Assets - Intangible assets :- Goodwill 455.00 Other Intangible Assets 548.00 Total Intangible Non Current Assets 1,003.00 Tangible Assets :- Land and Improvements 6.00 Building and Improvements 191.00 Machinery and Equipment 393.00 Accumulated Depreciation (423.00) Total Net Tangible Fixed Assets 167.00 Other Non Current Assets 196.00 Total Assets 3,012.00 2-a) Fixed asset turnover ratio = Net sales/Average fixed assets Average fixed assets - (Beginning Balance net fixed asset+Closing balance net Fixed asset)/2 Average fixed assets = (184-167)/2 Average fixed assets = $ 175.50 Miln Fixed asset turnover ratio = (3622/175.50) Fixed asset turnover ratio = 20.64 2-b) Since the fixed asset turnover of 2016 is 20.05 got improved to 20.64 in 2017, More Revenue got generated from each dollar than 2016