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Compute and compare 14 financial ratios

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Selected Financial data for Black & Decker and Snap-On Tools for 2004 are presented here (in millions)

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(a) (dollars in millions)
In millions
Black & Decker Snap-On
Black & Decker Snap-On Tools
Liquidity (1) Current ratio: 1.63 1.77 Income Statement Data for the Year
Current Assets / Net Sales $5,398.4 $2,407.2
Current Liabilities COGS $3,432.9 $1,319.8
Selling/Administrative Expenses $1,336.3 $945.1
Liquidity (2) Receivables turnover ratio: Interest Expense $57.9 $23.0
Sales/ 5.82 3.89 Other Income -$33.0 -$1.1
Average Receivables Income Tax expense $163.2 $38.7
Net Income (before irregular items) $441.1 $81.7
Liquidity (3) Average collection period: 62.72 93.81
365/ Balance Sheet Data (End of Year)
Receivables Turnover Ratio Current assets $2,927.2 $1,192.6
Property, plant, and ...

Solution Summary

The solution explains the calculation of various ratios for Black & Decker and Snap-On Tools and their comparison.

$2.19