RALPH LAUREN CORPORATION CONSOLIDATED BALANCE SHEETS March 28, 2020 March 30, 2019 (millions) ASSETS Current assets: Cash and cash equivalents $ 1,620.4 $ 584.1 Short-term investments 495.9 1,403.4...

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RALPH LAUREN CORPORATION CONSOLIDATED BALANCE SHEETS       March 28,  2020   March 30,  2019     (millions) ASSETS Current assets:         Cash and cash equivalents   $ 1,620.4   $ 584.1 Short-term investments   495.9   1,403.4 Accounts receivable, net of allowances of $276.2 million and $192.2 million   277.1   398.1 Inventories   736.2   817.8 Income tax receivable   84.8   32.1 Prepaid expenses and other current assets   160.8   359.3 Total current assets   3,375.2   3,594.8 Property and equipment, net   979.5   1,039.2 Operating lease right-of-use assets   1,511.6   — Deferred tax assets   245.2   67.0 Goodwill   915.5   919.6 Intangible assets, net   141.0   163.7 Other non-current assets   111.9   158.5 Total assets   $ 7,279.9   $ 5,942.8 LIABILITIES AND EQUITY Current liabilities:         Short-term debt   $ 475.0   $ — Current portion of long-term debt   299.6   — Accounts payable   246.8   202.3 Income tax payable   65.1   29.4 Current operating lease liabilities   288.4   — Deferred income 14.6 14.8 Accrued expenses and other current liabilities   702.5   953.6 Total current liabilities   2,092.0   1,200.1 Long-term debt   396.4   689.1 Long-term operating lease liabilities   1,568.3   — Income tax payable   132.7   146.7 Non-current liability for unrecognized tax benefits   88.9   78.8 Other non-current liabilities   308.5   540.9 Commitments and contingencies (Note 15)     Total liabilities   4,586.8   2,655.6 Equity:         Class A common stock, par value $.01 per share; 104.9 million and 102.9 million shares issued   1.0   1.0 Additional paid-in-capital   2,594.7   2,494.1 Retained earnings   5,994.0   5,979.1 Treasury stock, Class A, at cost; 57.3 million and 50.7 million shares   (5,778.4 )   (5,083.6 ) Accumulated other comprehensive loss   (118.2 )   (103.4 ) Total equity   2,693.1   3,287.2 Total liabilities and equity   $ 7,279.9   $ 5,942.8   RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS     Fiscal Years Ended     March 28,  2020   March 30,  2019   March 31,  2018     (millions, except per share data) Net revenues   $ 6,159.8   $ 6,313.0   $ 6,182.3 Cost of goods sold    (2,506.5 )   (2,427.0 )   (2,430.6 ) Gross profit   3,653.3   3,886.0   3,751.7 Selling, general, and administrative expenses    (3,237.5 )   (3,168.3 )   (3,095.5 ) Impairment of assets   (31.6 )   (25.8 )   (50.0 ) Restructuring and other charges   (67.2 )   (130.1 )   (108.0 ) Total other operating expenses, net   (3,336.3 )   (3,324.2 )   (3,253.5 ) Operating income   317.0   561.8   498.2 Interest expense   (17.6 )   (20.7 )   (18.2 ) Interest income   34.4   40.8   12.3 Other income (expense), net   (7.4 )   0.6   (3.1 ) Income before income taxes   326.4   582.5   489.2 Income tax benefit (provision)   57.9   (151.6 )   (326.4 ) Net income   $ 384.3   $ 430.9   $ 162.8               Net income per common share:             Basic   $ 5.07   $ 5.35   $ 1.99 Diluted   $ 4.98   $ 5.27   $ 1.97 Weighted-average common shares outstanding:             Basic   75.8   80.6   81.7 Diluted   77.2   81.7   82.5 Dividends declared per share   $ 2.75   $ 2.50   $ 2.00 RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME     Fiscal Years Ended     March 28,  2020   March 30,  2019   March 31,  2018     (millions) Net income   $ 384.3   $ 430.9   $ 162.8 Other comprehensive income (loss), net of tax:             Foreign currency translation gains (losses)   (11.9 )   (39.2 )   126.9 Net gains (losses) on cash flow hedges   (2.2 )   36.2   (30.6 ) Net gains (losses) on defined benefit plans   (0.7 )   (1.9 )   3.6 Other comprehensive income (loss), net of tax   (14.8 )   (4.9 )   99.9 Total comprehensive income   $ 369.5   $ 426.0   $ 262.7   RALPH LAUREN CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS     Fiscal Years Ended     March 28,  2020   March 30,  2019   March 31,  2018     (millions) Cash flows from operating activities:             Net income   $ 384.3   $ 430.9   $ 162.8 Adjustments to reconcile net income to net cash provided by operating activities:             Depreciation and amortization expense   269.5   281.3   295.2 Deferred income tax expense (benefit)   (168.8 )   8.5   84.1 Loss on sale of property   —   11.6   — Non-cash stock-based compensation expense   100.6   88.6   74.5 Non-cash impairment of assets, including equity method investment   38.7   25.8   50.0 Other non-cash charges   56.4   6.9   11.9 Changes in operating assets and liabilities:             Accounts receivable   57.6   10.1   34.5 Inventories   72.3   (83.6 )   65.4 Prepaid expenses and other current assets   58.2   (40.5 )   (15.1 ) Accounts payable and accrued liabilities   (64.3 )   (4.7 )   64.6 Income tax receivables and payables   (42.5 )   13.9   166.5 Other balance sheet changes   (7.4 )   35.7   (19.3 ) Net cash provided by operating activities   754.6   783.8   975.1 Cash flows from investing activities:             Capital expenditures   (270.3 )   (197.7 )   (161.6 ) Purchases of investments   (1,289.7 )   (3,030.8 )   (1,605.6 ) Proceeds from sales and maturities of investments   2,240.4   2,357.5   1,582.7 Acquisitions and ventures   0.9   (4.5 )   (4.6 ) Proceeds from sale of property   20.8   20.0   — Settlement of net investment hedges   —   (23.8 )   — Net cash provided by (used in) investing activities   702.1   (879.3 )   (189.1 ) Cash flows from financing activities:             Proceeds from credit facilities   475.0   —   10.1 Repayments of borrowings on credit facilities   —   (9.9 )   — Proceeds from the issuance of long-term debt   —   398.1   — Repayments of long-term debt   —   (300.0 )   — Payments of finance lease obligations   (13.6 )   (19.6 )   (28.2 ) Payments of dividends   (203.9 )   (190.7 )   (162.4 ) Repurchases of common stock, including shares surrendered for tax withholdings   (694.8 )   (502.6 )   (17.1 ) Proceeds from exercise of stock options   —   21.8   0.1 Other financing activities   (0.9 )   (2.8 )   — Net cash used in financing activities   (438.2 )   (605.7 )   (197.5 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash   (15.2 )   (27.8 )   55.2 Net increase (decrease) in cash, cash equivalents, and restricted cash   1,003.3   (729.0 )   643.7 Cash, cash equivalents, and restricted cash at beginning of period   626.5   1,355.5   711.8 Cash, cash equivalents, and restricted cash at end of period   $ 1,629.8   $ 626.5   $ 1,355.5 RALPH LAUREN CORPORATION (PARTIAL) CONSOLIDATED STATEMENTS OF EQUITY             Additional       Treasury Stock              Common Stock   Paid-in   Retained   at Cost       Total     Shares   Amount   Capital   Earnings   Shares   Amount   AOCI   Equity     (amounts in millions) Balance at March 30, 2019   128.8   $ 1.3   $ 2,493.8   $ 5,979.1   50.7   $ (5,083.6 )   $ (103.4 )   $ 3,287.2 Comprehensive income:                                 Net income               384.3                 Other comprehensive loss
Answered Same DayNov 08, 2021

Answer To: RALPH LAUREN CORPORATION CONSOLIDATED BALANCE SHEETS March 28, 2020 March 30, 2019 (millions) ASSETS...

Khushboo answered on Nov 09 2021
128 Votes
Solution 1
The fiscal year end of the entity is March 28, 2020.
Solution 2
The net balance of trade receivables is $277.1 million after net of allowances as on March 28, 2020.
Solution 3
Calculation of days sales outstanding
    Ratio
    Formula
    2
020
    2019
    Days’ sales outstanding
    365
    365
    16.42 days
    365
    23.02 days
    
    Receivable turnover ratio
    6159.8/277.1
    
    6313/398.1
    
Solution 4
The credit policy of the company has been weakened in 2020 because earlier the provision for allowances was $192.2 million which has been significantly increased to $276.2 million and it shows the higher chances of less recovery from trade receivables.
Solution 5
The inventories of the entity are stated at the lower or cost of estimated market value and the cost is determined using weighted average cost basis.
Solution 6
The entity is making adjustment of the inventories using the lower or cost of estimated market value.
Solution 7
Calculation of days sales on hand
    Ratio
    Formula
    2020
    2019
    Days’ sales outstanding
    365
    365
    73.55 days
    365
    76.81 days
    
    Inventory turnover ratio
    3653.3/736.2
    
    3886/817.8
    
Solution 8
The average useful life of the asset differs on the basis of the assets hold by the entity. The furniture and fixtures, machinery and software of the entity is having average useful life of three to seven years. In addition to this, buildings and improvements are having average useful life of ten to forty years.
Solution 9
The average age of the furniture and fixtures, machinery and software of the entity is three to seven years. In addition to this, buildings and improvements are having average age of ten to forty years.
Solution 10
During the year the entity has recorded impairment charges of $31.6 million for writing down the long lived assets.
Solution 11
The entity is not having any leased assets in its financial statement.
Solution 12
Yes, the entire deferred tax recognized at closing date is expected to recoverable because the entity has not recognized DTA on those items which are having no expectation of recovery.
Solution 13
There is no addition or impairment of goodwill during the year.
Solution 14
The entity is having intangible assets other than goodwill which includes trademark and brands, licensed trademark, customer relationship and other assets.
Solution 15
The intangible assets which are subject to amortization includes licensed trademark, customer relationship and other assets. On the other hand trademark and...
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