Question

Analyzing Segment Disclosures Raytheon Company disclosed the following data related to segment sales and operating profits for fiscal 2018. Total Net Sales Operating Income $ millions 2018 2017 2016 2018 2017 2016 Integrated defense systems 55.809 55,456 55,197 $952 5879 5913 Intelligence information and services 6.722 5.806 5.799 506 428 439 Missile systems 8,298 7.320 6,670 973 1,010 921 Space and airborne systems 6.343 6,044 5.811 831 810 760 Forcepoint 596 572 551 5 31 85 Eliminations (1,423) (1.338) (1.279) Total net sales $26,345 $23.860 $22.749 The company also reported the following on its balance sheet. S millions 2018 2017 Receivables 51,549 51,245 * (net of allowance for doubtful accounts of $12 and $8) Required a. Which segment is largest in 2018? Missile Systems b. Calculate the operating profit margin for each segment and determine which segment is most profitable in 2018 by this measure. Note: Round percentage to one decimal place (for example, enter 6.7% for 6.655596). Operating Profit Margin Integrated Defense Systems 10% X Intelligence Information and Services Missile Systems 5% X Space and Airborne Systems 74 X Forcepoint Most profitable segment Integrated Defense Systems c. Which segment's sales grew the most in 2018? How does this compare to 2017 sales growth? Note: Round percentage to one decimal place (for example, enter 6.7% for 6.6555%).

please I need the ones mark in x. thank you

Answer 1

$879 $ Millions Integrated defence system Intelligence, information and services Missile systems Space and airborne systems Forcepoint Eliminations Total net sales 2018 $5,809 $6,722 $8,298 $6,343 $596 -$1,423 $26,345 Sales 2017 $5,456 $5,806 $7,320 $6,044 $572 -$1,338 $23,860 2016 $5,197 $5,799 $6,670 $5,811 $551 -$1,279 $22,749 Operating Income 2018 2017 2016 $962 $913 $506 $428 $439 $973 $1,010 $921 $831 $810 $760 $5 $31 $85 a Largest segment in 2018 Missile System b Operating profit margin Operating Income Sales $962 Integrated defence system Intelligence, information and services Missile systems Space and airborne systems Forcepoint Operating profit margin 16.6% (Operating Income/Sales) 7.5% 11.7% 13.1% Most profitable segment 0.8% $506 $973 $831 $5 $5,809 $6,722 $8,298 $6,343 $596 Most profitable segment Integrated defence system 2018 2017 0.1% Segment with most growth in 2018 Intelligence, information and services 15.8% Working notes: Sales growth = sales of 2018 - sales of 2017/ Sales of 2017 $ Millions Integrated defence system Intelligence, information and services Missile systems Space and airborne systems Forcepoint Eliminations Total net sales 2018 $5,809 $6,722 $8,298 $6,343 $596 -$1,423 $26,345 2017 $5,456 $5,806 $7,320 $6,044 $572 -$1,338 $23,860 2016 $5,197 $5,799 $6,670 $5,811 $551 -$1,279 $22,7491 Sales growth 2018 2017 6.5% 5.0% 15.8% 0.1% Highest 13.4% 9.7% 4.9% 4.0% 4.2% 3.8% d AR Turnover DSO 18.7 19.5 Average Net Receivables Add: Allowance for doubtful accounts Gross Accounts Receivable 2018 $1,549 $12 $1,561 2017 $1,245 $8 $1,253 $1,407 AR Turnover Net sales in 2018 Average accounts receivable $26,345 $1,407 18.7 DSO Days 365 days 365 18.72 19.5 AR Turnover 2018 0.8% 2017 0.6% e Allowance as % of AR gross 2017 AR net Add: Allowance for doubtful accounts Gross AR Allowance as % of AR gross 2018 $1,549 $12| $1,561 0.8% $1,245 $8 a $1,253 b 0.6% a/b