Compute and compare 14 financial ratios
Not what you're looking for?
Please find attachment for the Problem
Selected Financial data for Black & Decker and Snap-On Tools for 2004 are presented here (in millions)
Purchase this Solution
Solution Summary
The solution explains the calculation of various ratios for Black & Decker and Snap-On Tools and their comparison.
Solution Preview
Please see the attached file
(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 ...
Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Operations Management
This quiz tests a student's knowledge about Operations Management