Question

Consolidated Statements of Income for Macy's, Inc., 2015-2016 (in millions, except per share amounts) 2016 $25,778 (15,621) 10,157 (8,265) (479) (98) 1,315 2015 $27,079 (16,496) 10,583 (8,256) (288) 2,039 (363) (367) Net sales Cost of sales Gross margin Selling, general and administrative expenses Impairments, store closing and other costs Settlement charges Operating income Interest expense Premium on early retirement of debt Interest income Income before income taxes Federal, state, and local income tax expense Net income Net loss attributable to noncontrolling interest Net income attributable to Macy's, Inc. shareholders Basic earnings per share attributable to Macy's, Inc. shareholders Diluted earnings per share attributable to Macy's, Inc. shareholders 1.678 (608) 1,070 1,072 $2.01 3.26 $ 1.99 $ 3.22

	Ratios 2016 2015 a. Gross profit margin (%) 39.4 39.1 b. Operating profit margin (%) 5.1 7.5 c. Net profit margin (%) 2.4 4.0 d. Return on shareholders' equity (%) 14.1 25.2 e. Return on assets (%) 3.1 5.2 f. Times interest earned coverage 3.6 5.6 g. Long-term debt-to-equity ratio 1.5 3.8 h. Days of inventory 126.2 121.8 i. Inventory turnover ratio 2.9 3.0 j. Average collection period 7.4 7.5

1-From 2015 to 2016, Macy’s, Inc., return on equity and return on assets showed a(n)

Multiple Choice

A)favorable increase.

B)favorable decrease.

C)unfavorable decrease.

D)unfavorable increase.

From 2015 to 2016, Macy’s, Inc., times- interest-earned ratio showed a(n)

A)favorable increase.

B)favorable decrease.

C)unfavorable decrease.

D)unfavorable increase.

From 2015 to 2016, Macy’s, Inc., long-term debt-to-equity ratio showed a(n)

A)favorable increase.

B)favorable decrease.

C)unfavorable decrease.

D)unfavorable increase.

From 2015 to 2016, Macy's, Inc., turnover ratios showed a(n)

Multiple Choice

A)favorable increase in days of inventory and favorable decrease in inventory turnover.

B)favorable decrease in both days of inventory and inventory turnover.

C)unfavorable increase in days of inventory and an unfavorable decrease in inventory turnover.

D)favorable increase in both days of inventory and inventory turnover.

From 2015 to 2016, Macy’s, Inc., average collection period showed a(n)

A)favorable increase.

B)favorable decrease.

C)unfavorable decrease.

D)unfavorable increase.

Answer 1

R S T U V W 44 39 retun on equity and return on assets shows 40 C) unfavourable decrease expalnation:-equity holder are earning less 41 and total earning on assets lowered 42 2 times interest earned showed 43 b) unfavourable decrease explanation it shows that the entity has reduced ability of earning interest, risking creditors interest. therefore fabouranle for the company 46 3 long term deb to eqyity ratio 47 b) favourable decrease explanation:-decreaseing the debt to eqity ratio shows reducing the risk to company 49 4 turnover ratio 50 c) unfavorable increase in days of inventory and an unfavorable decrease in inventory turnover 51 explantion above result shows that the company has to pile more stock now and more days 52 to conver it to sales 53 5 average collection period 54 b) favourable decrease 55 explanation:- it shows entity perform well to collect from the customers

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