Tiffany & Co. (TIF) designs and sells jewelry including rings,

Tiffany & Co. (TIF) designs and sells jewelry including rings, watches, and necklaces throughout the world. The following data (in millions) were taken from recent financial statements of Tiffany:

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 370

Total assets at the beginning of the year. . . . . . . . . . . . . . . . .  5,098

Total assets at the end of the year. . . . . . . . . . . . . . . . . . . . . . . 5,468

1. Compute the return on assets for Tiffany using the preceding data. Round to one decimal place.

2. Using your answers to MBA 1-6, compare the return on assets for Walmart to that of Tiffany.

The management of The Hershey Company (HSY) has asked union

The management of The Hershey Company (HSY) has asked union workers in two of its highest-cost Pennsylvania plants to accept higher health insurance premiums and take a wage cut. The workers’ portion of the insurance cost would double from 6% of the premium to 12%. In addition, workers hired after January 2000 would have their hourly wages cut by $4, which would be partially offset by a 2% annual raise. Management says that the plants need to be more cost competitive. Management has indicated that if the workers accept the proposal, the company would invest $30 million to modernize the plants and move future projects to the plants. Management has refused, however, to guarantee more work at the plants even if the workers approve the proposal. If the workers reject the proposal, management implies that it would move future projects to other plants and that layoffs might be forthcoming. Do you consider management’s actions ethical?

Pfizer Inc. (PFE) discovers, produces, and distributes medicines, including Celebrex

Pfizer Inc. (PFE) discovers, produces, and distributes medicines, including Celebrex and Lipitor. Ford Motor Co. (F) develops, markets, and produces automobiles and trucks. Microsoft Corporation (MSFT) develops, produces, and distributes a variety of computer software and hardware products including Windows, Office, Excel, and the Xbox.

1. Without computing the return on assets, rank from highest to lowest Pfizer, Ford, and Microsoft in terms of their return on assets.

2. The following data (in millions) were taken from recent financial statements of each company:

Compute the return on assets for each company using the preceding data, and rank the companies’ return on assets from highest to lowest. Round the return on assets to one decimal place.

3. Analyze and explain the rankings in (2)

ExxonMobil Corporation (XOM) explores, produces, and distributes oil and natural

ExxonMobil Corporation (XOM) explores, produces, and distributes oil and natural gas. The Coca-Cola Company (KO) produces and distributes soft drink beverages, including Coke. Walmart Stores, Inc. (WMT) operates retail stores and supermarkets.

1. Without computing the return on assets, rank from highest to lowest ExxonMobil, Coca- Cola, and Walmart in terms of their return on assets.

2. The following data (in millions) were taken from recent financial statements of each company:

Compute the return on assets for each company using the preceding data, and rank the companies’ return on assets from highest to lowest. Round the return on assets to one decimal place.

3. Analyze and explain the rankings in (2).

Review financial statements for three well-known companies, such as Ford

Review financial statements for three well-known companies, such as Ford Motor Co. (F), General Motors (GM), International Business Machines (IBM), Microsoft (MSFT), or Amazon (AMZN).The financial statements may be found at .html. Enter the company’s stock market symbol in the Fast Search box, enter 10-K in the Filing Type box, and click on the latest 10-K. If you wish, you can save the whole 10-K report to your computer.

Examine the balance sheet for each company and determine the total assets, liabilities, and stockholders’ equity. Verify that total assets equal the total of the liabilities plus stockholders’ equity.

The following data (in millions) were adapted from recent financial

The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR):

Sales ……………………………    $521

Cost of sales …………………    320

Net income …………………..      68

Average total assets …….     915

1. What is Tootsie Roll’s percent of the cost of sales to sales? Round to one decimal place.

2. The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.

3. What is the percentage of net income to sales for Tootsie Roll? Round to one decimal place.

4. Compute the return on assets for Tootsie Roll.

5. Using your answers to MBA 1-3, compare the markup percentages and return on assets for Hershey and Tootsie Roll.

The amounts of the assets and liabilities of Viva Travel

The amounts of the assets and liabilities of Viva Travel Service as of September 30, 20Y6, the end of the current year, and its revenue and expenses for the year are listed below. The retained earnings were $135,000 and the common stock was $45,000 as of October 1, 20Y5, the beginning of the current year. Dividends of $9,000 were paid during the year.

Accounts payable …………………………………………… $157,500

Accounts receivable …………………………………………  288,900

Cash ………………………………………………………………..  149,400

Common stock ………………………………………………..    63,000

Fees earned …………………………………………………….  810,000

Miscellaneous expense ……………………………………    33,300

Rent expense …………………………………………………..  162,000

Supplies …………………………………………………………..    11,700

Supplies expense …………………………………………….    34,200

Taxes expense …………………………………………………    27,000

Utilities expense ………………………………………………    67,500

Wages expense ………………………………………………..  382,500

Instructions

1. Prepare an income statement for the current year ended September 30, 20Y6.

2. Prepare a statement of stockholders’ equity for the current year ended September 30, 20Y6.

3. Prepare a balance sheet as of September 30, 20Y6.

The following financial data were adapted from a recent annual

The following financial data were adapted from a recent annual report of Target Corporation (TGT) for the year ending January 31.

                                                                                        In millions

Accounts payable ………………………………………………..    $ 9,761

Cash …………………………………………………………………….      1,556

Common stock ……………………………………………………..          43

Cost of sales …………………………………………………………   53,299

Debt and other borrowings …………………………………..  11,275

Income tax expense ……………………………………………..        746

Interest expense …………………………………………………..        461

Inventories ……………………………………………………………    9,497

Other assets …………………………………………………………    4,704

Other expenses …………………………………………………….   2,190

Other liabilities …………………………………………………….    8,957

Property and equipment, net ……………………………….. 25,533

Sales …………………………………………………………………..   75,356

Selling, general, and administrative expenses …….   15,723

Instructions

1. Prepare Target’s income statement for the year ending January 31.

2. Prepare Target’s statement of stockholders’ equity for the year ending January 31.

Use the following additional information for the year:

Common stock, Feb. 1 of prior year ……………………………..      $    45

Retained earnings Feb. 1 of prior year ………………………….       6,495

Other stockholder equity items on Feb. 1 of prior year ….      5,111

Dividends ………………………………………………………………………     1,347

Other items affecting retained earnings ………………………..    (2,068)

Other items affecting common stock …………………………….           (2)

Other items affecting stockholders’ equity 126

3. Prepare a balance sheet as of January 31.

The following cash data for the year ended December 31

The following cash data for the year ended December 31 were adapted from a recent annual report of Alphabet (GOOG), formerly known as Google. The cash balance as of January 1 was $12,918 (in millions).

                                                                                                                        In millions

Payments on debt ……………………………………………………………………….  $ 4,377

Proceeds from disposals of property and equipment ………………….           99

Purchases of investments (marketable securities) ……………………….    92,195

Net cash provided by operating activities* ………………………………….    37,496

Other net cash flows provided by investing activities ………………….     60,695

Other net cash flows used by financing activities ………………………..       3,921

*adjusted for effect of exchange rate changes on cash and cash equivalents

Instructions

Prepare Alphabet’s statement of cash flows for the year ended December 31.

Compare The Gap Inc. (MBA 3-6) and American Eagle Outfitters

Compare The Gap Inc. (MBA 3-6) and American Eagle Outfitters Inc. (MBA 3-7) liquidity positions for Year 2. Comment on the differences.

Data from MBA 3-6

The Gap Inc. (GPS) operates specialty retail stores under such brand names as GAP, Old Navy, and Banana Republic. The following asset and liability data (in millions) were adapted from recent financial statements.

Data from MBA 3-7

American Eagle Outfitters Inc. (AEO) operates specialty retail stores, selling clothing such as denim, sweaters, t-shirts, and fleece outerwear that targets 15-to-25-year-old men and women. The following asset and liability data (in millions) were adapted from recent financial statements.