Selected balance sheet and income statement information [US$
millions] from Abercrombie & Fitch [ANF] and TJX...
Selected balance sheet and income statement information [US$
millions] from Abercrombie & Fitch [ANF] and TJX Companies,
clothing retailers in the high-end and value-priced segments,
respectively, follows. Compute the 2016 return on net operating
assets (RNOA) for both companies.
2016 Sales
2016 NOPAT
2016 NOA
2015 NOA
ANF
$2,784.7
$324.7
$565.0
$ 361.7
TJX
16,057.9
708.5
2,235.9
2,139.5
ANF is 70.08% & TJX is 32.39%
Why is your TJX RNOA significantly different from that of
ANF?
Comparing Abercrombie & Fitch and TJX
Companies
Following are selected financial statement data from Abercrombie
&...
Comparing Abercrombie & Fitch and TJX
Companies
Following are selected financial statement data from Abercrombie
& Fitch (ANF-upscale clothing retailer) and TJX Companies
(TJX-value-priced clothing retailer including TJ Maxx).
($ thousands)
Company
Total Assets
Net Income
Sales
2015
TJX Companies Inc.
$10,988,750
2016
TJX Companies Inc.
11,499,482
$2,277,658
$30,944,938
2015
Abercrombie & Fitch
2,505,167
2016
Abercrombie & Fitch
2,443,039
35,576
3,518,680
(a) Compute the return on assets for both companies for the year
ended 2016.
Round your answers to one...
Forecasting an Income Statement
Assume Abercrombie & Fitch reports the following income
statements.
Income Statement, For...
Forecasting an Income Statement
Assume Abercrombie & Fitch reports the following income
statements.
Income Statement, For Fiscal Years Ended ($ thousands)
2011
2010
Net sales
$ 3,741,847
$ 3,318,158
Cost of goods sold
1,238,480
1,109,152
Gross profit
2,503,367
2,209,006
Stores and distribution expense
1,386,846
1,187,071
Marketing, general and administrative expense
395,758
373,828
Other operating (income), net
(11,734)
(9,983)
Operating income
732,497
658,090
Interest income, net
(19,328)
(13,896)
Income before income taxes
751,825
671,986
Provision for income taxes
283,628
249,800
Net...
Direct Computation of Nonoperating Return with
Noncontrolling Interest
Balance sheets and income statements for Costco Wholesale...
Direct Computation of Nonoperating Return with
Noncontrolling Interest
Balance sheets and income statements for Costco Wholesale
Corporation follow.
Costco Wholesale Corporation
Consolidated Statements of Earnings
For Fiscal Years Ended ($ millions)
September 2, 2018
Total revenue
$141,576
Operating expenses
Merchandise costs
123,152
Selling, general and administrative
13,876
Preopening expenses
68
Operating Income
4,480
Other income (expense)
Interest expense
159
Interest income and other, net
(121)
Income before income taxes
4,442
Provision for income taxes
1,263
Net income including noncontrolling interests...
Following are the income statement and balance sheet for Cisco
Sytems for the year ended July...
Following are the income statement and balance sheet for Cisco
Sytems for the year ended July 30, 2016.
Cisco Sytems
Consolidated Statements of Income
Years Ended December ($ millions)
July 30,
2016
July 25,
2015
Revenue
Product
$37,254
$37,750
Service
11,993
11,411
Total revenue
49,247
49,161
Cost of sales
Product
14,161
15,377
Service
4,126
4,103
Total cost of sales
18,287
19,480
Gross margin
30,960
29,681
Operating expenses
Research and development
6,296
6,207
Sales and marketing
9,619
9,821
General and administrative...
Following are the income statement and balance sheet for Cisco
Sytems for the year ended July...
Following are the income statement and balance sheet for Cisco
Sytems for the year ended July 30, 2016.
Cisco Sytems
Consolidated Statements of Income
Years Ended December ($ millions)
July 30,
2016
July 25,
2015
Revenue
Product
$37,254
$37,750
Service
11,993
11,411
Total revenue
49,247
49,161
Cost of sales
Product
14,161
15,377
Service
4,126
4,103
Total cost of sales
18,287
19,480
Gross margin
30,960
29,681
Operating expenses
Research and development
6,296
6,207
Sales and marketing
9,619
9,821
General and administrative...
The Sterling Tire Company’s income statement for 20X1 is as
follows:
STERLING TIRE COMPANY
Income Statement...
The Sterling Tire Company’s income statement for 20X1 is as
follows:
STERLING TIRE COMPANY
Income Statement
For the Year Ended December 31, 20X1
Sales (22,000 tires at $64 each)
$
1,408,000
Variable costs (22,000 tires at $32)
704,000
Fixed costs
420,000
Earnings before interest and taxes (EBIT)
$
284,000
Interest expense
51,000
Earnings before taxes (EBT)
$
233,000
Income tax expense (25%)
58,250
Earnings after taxes (EAT)
$
174,750
a. Compute the degree of operating leverage.
(Round your answer to...
Forecasting and Estimating Share Value Using the DCF Model
Following are the income statement and balance...
Forecasting and Estimating Share Value Using the DCF Model
Following are the income statement and balance sheet for Intel
Corporation.
INTEL CORPORATION
Consolidated Statements of Income
Year Ended (In millions)
Dec. 25, 2010
Dec. 26, 2009
Dec. 27, 2008
Net revenue
$ 43,623
$ 35,127
$ 37,586
Cost of sales
15,132
15,566
16,742
Gross margin
28,491
19,561
20,844
Research and development
6,576
5,653
5,722
Marketing, general and administrative
6,309
7,931
5,452
Restructuring and asset impairment charges
--
231
710
Amortization...
Following are Cisco Systems’ sales, net operating profit after
tax (NOPAT), and net operating assets (NOA)...
Following are Cisco Systems’ sales, net operating profit after
tax (NOPAT), and net operating assets (NOA) for its year ended July
31, 2016 ($ millions).
Sales
$48,136
Net operating profit after tax (NOPAT)
10,349
Net operating assets (NOA)
25,880
Use the parsimonious method to forecast Cisco’s sales, NOPAT,
and NOA for years 2017 through 2020 using the following
assumptions.
Sales growth per year
1.0%
for 2017 and
2.0%
thereafter
Net operating profit margin (NOPM)
21.5%
Net operating asset turnover (NOAT),...
The Harding Company manufactures skates. The company’s income
statement for 20X1 is as follows: HARDING COMPANYIncome...
The Harding Company manufactures skates. The company’s income
statement for 20X1 is as follows: HARDING COMPANYIncome
StatementFor the Year Ended December 31, 20X1Sales (12,400 skates @
$98 each)$1,215,200Variable costs (12,400 skates at $44)
545,600Fixed costs 390,000Earnings before interest and taxes
(EBIT)$279,600Interest expense 72,000Earnings before taxes
(EBT)$207,600Income tax expense (40%) 83,040Earnings after taxes
(EAT)$124,560 a. Compute the degree of operating leverage. (Round
your answer to 2 decimal places.) b. Compute the
degree of financial leverage. (Round your answer to 2...