Cullumber Appliances Corporation has reported its financial results for the year ended December 31, 2017. Cullumber Appliances Corporation Income Statement for the Fiscal Year Ended December 31, 2017 Net sales $ 5,899,512,000 Cost of goods sold 3,224,958,940 Gross profit $ 2,674,553,060 Selling, general, and administrative expenses 1,101,893,423 Depreciation 334,776,116 Operating income $ 1,237,883,521 Interest expense 32,014,500 EBT $ 1,205,869,021 Income taxes 320,866,566 Net earnings $ 885,002,455 Cullumber Appliances Corporation Balance Sheet as of December 31, 2017 Assets: Liabilities Equity: Cash and cash equivalents $ 642,840,000 Short-term borrowings $ 98,332,398 Accounts receivable 1,161,885,300 Trade accounts payable 421,708,488 Inventory 1,178,570,300 Other current liabilities 814,072,037 Other current assets 366,013,300 Total current assets $ 3,349,308,900 Total current liabilities $ 1,334,112,923 Net fixed assets 875,086,233 Long-term debt 1,302,143,673 Goodwill 123,956,553 Common stock 456,815,514 Other assets 817,404,946 Retained earnings 2,072,684,522 Total assets $ 5,165,756,632 Total liabilities and equity $ 5,165,756,632 Using the information from the financial statements, complete a comprehensive ratio analysis for Cullumber Appliances Corporation. (a) Calculate these liquidity ratios: current and quick ratios. (Round answers to 2 decimal places , e.g. 12.25.) Liquidity Ratios Current Ratio times Quick Ratio times

Managerial Accounting: The Cornerstone of Business Decision-Making

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ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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Cullumber Appliances Corporation has reported its financial results for the year ended December 31, 2017.

Cullumber Appliances Corporation Income Statement for the Fiscal Year Ended December 31, 2017
Net sales		$ 5,899,512,000
Cost of goods sold		3,224,958,940
Gross profit		$ 2,674,553,060
Selling, general, and administrative expenses		1,101,893,423
Depreciation		334,776,116
Operating income		$ 1,237,883,521
Interest expense		32,014,500
EBT		$ 1,205,869,021
Income taxes		320,866,566
Net earnings		$ 885,002,455

Cullumber Appliances Corporation Balance Sheet as of December 31, 2017
Assets:	Liabilities Equity:
Cash and cash equivalents	$ 642,840,000	Short-term borrowings	$ 98,332,398
Accounts receivable	1,161,885,300	Trade accounts payable	421,708,488
Inventory	1,178,570,300	Other current liabilities	814,072,037
Other current assets	366,013,300
Total current assets	$ 3,349,308,900	Total current liabilities	$ 1,334,112,923
Net fixed assets	875,086,233	Long-term debt	1,302,143,673
Goodwill	123,956,553	Common stock	456,815,514
Other assets	817,404,946	Retained earnings	2,072,684,522

Total assets	$ 5,165,756,632	Total liabilities and equity	$ 5,165,756,632

Using the information from the financial statements, complete a comprehensive ratio analysis for Cullumber Appliances Corporation.

(a) Calculate these liquidity ratios: current and quick ratios. (Round answers to 2 decimal places , e.g. 12.25.)

Liquidity Ratios
Current Ratio			times
Quick Ratio			times

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