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    Financial and turnover analysis

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    Practice Problems

    1. Consider the following information for Walgreen's:

    2008 2009
    Cash and Marketable Securities $10 $80
    Accounts Payables $60 $30
    Long Term Bonds $754 $580
    Deferred Income Taxes $140 $130
    Notes Payable $110 $60
    Net Plant and Equip $1000 $870
    Preferred Stock(400,000 shares o/s) $40 $40
    Depreciation $100 $90
    Interest Paid $88 $60
    Accumulated Depreciation $275 $330
    Accounts Receivables $375 $315
    Inventories $615 $415
    Common Stock (50 mill shares o/s) $130 $130
    Accumulated Retained Earnings $766 $710
    Net Sales $3000 $2850
    COGS $2616 $2497
    Preferred Dividends $4 $4
    Common Dividends $57.5 $53

    The company's tax rate is 40%.
    (a) Prepare an income statement in excel
    (b) Prepare a balance sheet in excel
    (c) Prepare a statement of cash flows in excel

    2. Ratio analysis: provide the following ratios for Walgreen's for 2009. In excel spreadsheet
    1. Inventory Turnover Ratio
    2. Total Debt Ratio
    3. Days Sales in Receivables
    4. Times Interest Earned Ratio
    5. Total Asset Turnover Ratio
    6. Retention (Plowback) Ratio
    7. Common Size Depreciation
    8. Net Working Capital

    3. Walgreen's major competitor, CVS Pharmacy has an inventory turnover ratio of 12.6 times, a TIE of 12 times, day's sales in receivables of 30 days, a total debt ratio of 25%, and a dividend payout ratio of 41%. How does Walgreen's compare with its competitor? Explain. What broad suggestions would you make to Walgreen's, given the current financial environment? Prepare in word document

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    https://brainmass.com/business/debt-ratio/financial-turnover-analysis-558175

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    Practice Problems

    1. Consider the following information for Walgreen's:

    2008 2009
    Cash and Marketable Securities $10 $80
    Accounts Payables $60 $30
    Long Term Bonds $754 $580
    Deferred Income Taxes $140 $130
    Notes Payable $110 $60
    Net Plant and Equip $1000 $870
    Preferred Stock(400,000 shares o/s) $40 $40
    Depreciation $100 $90
    Interest Paid $88 $60
    Accumulated ...

    Solution Summary

    The solution assists with discusses the financial and turnover analysis.

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