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LEGGETT & PLATT, INCORPORATED Consolidated Statements of Operations Year Ended December 31 (Amounts in millions, except per share data XXXXXXXXXX Net trade sales $ 4,280.2 $ 4,752.5 $ 4,269.5 Cost of...

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LEGGETT & PLATT, INCORPORATED

Consolidated Statements of Operations



Year Ended December 31
(Amounts in millions, except per share data XXXXXXXXXX
Net trade sales $ 4,280.2 $ 4,752.5 $ 4,269.5
Cost of goods sold 3, XXXXXXXXXX, XXXXXXXXXX,380.8
Gross profit XXXXXXXXXX, XXXXXXXXXX
Selling and administrative expenses XXXXXXXXXX425.1
Amortization of intangibles XXXXXXXXXX5
Impairments XXXXXXXXXX
Other (income) expense, net XXXXXXXXXX
Earnings before interest and income taxes XXXXXXXXXX436.9
Interest expense XXXXXXXXXX9
Interest income XXXXXXXXXX
Earnings before income taxes XXXXXXXXXX384.4
Income taxes XXXXXXXXXX3
Net earnings XXXXXXXXXX306.1
(Earnings) attributable to noncontrolling interest, net of tax XXXXXXXXXX)
Net earnings attributable to Leggett & Platt, Inc. common shareholders $ 247.6 $ 333.8 $ 305.9
Net earnings per share attributable to Leggett & Platt, Inc. common shareholders
Basic $ 1.82 $ 2.48 $ 2.28
Diluted $ 1.82 $ 2.47 $ 2.26

The accompanying notes are an integral part of these financial statements.


LEGGETT & PLATT, INCORPORATED

Consolidated Statements of Comprehensive Income (Loss)

Year Ended December 31
(Amounts in millions XXXXXXXXXX
Net earnings $ 247.7 $ 333.9 $ 306.1
Other comprehensive income (loss), net of tax:
Foreign cu
ency translation adjustments XXXXXXXXXX0)
Cash flow hedges XXXXXXXXXX)
Defined benefit pension plans XXXXXXXXXX8)
Other comprehensive income (loss XXXXXXXXXX1)
Comprehensive income XXXXXXXXXX238.0
Less: comprehensive (income) attributable to noncontrolling interest — XXXXXXXXXX)
Comprehensive income attributable to Leggett & Platt, Inc. $ 272.0 $ 334.6 $ 237.8

The accompanying notes are an integral part of these financial statements.


LEGGETT & PLATT, INCORPORATED
Consolidated Balance Sheets
December 31
(Amounts in millions, except per share data XXXXXXXXXX
ASSETS
Cu
ent Assets
Cash and cash equivalents $ 348.9 $ 247.6
Trade receivables, net XXXXXXXXXX
Other receivables, net XXXXXXXXXX
Total receivables, net XXXXXXXXXX
Total inventories, net XXXXXXXXXX
Prepaid expenses and other cu
ent assets XXXXXXXXXX
Total cu
ent assets 1, XXXXXXXXXX,538.1
Property, Plant and Equipment—at cost
Machinery and equipment 1, XXXXXXXXXX,388.8
Buildings and other XXXXXXXXXX
Land XXXXXXXXXX
Total property, plant and equipment 2, XXXXXXXXXX,151.3
Less accumulated depreciation 1, XXXXXXXXXX,320.5
Net property, plant and equipment XXXXXXXXXX
Other Assets
Goodwill 1, XXXXXXXXXX,406.3
Other intangibles, net XXXXXXXXXX
Operating lease right-of-use assets XXXXXXXXXX
Sundry XXXXXXXXXX
Total other assets 2, XXXXXXXXXX,447.5
TOTAL ASSETS $ 4,754.0 $ 4,816.4
LIABILITIES AND EQUITY
Cu
ent Liabilities
Cu
ent maturities of long-term debt $ 50.9 $ 51.1
Cu
ent portion of operating lease liabilities XXXXXXXXXX
Accounts payable XXXXXXXXXX
Accrued expenses XXXXXXXXXX
Other cu
ent liabilities XXXXXXXXXX
Total cu
ent liabilities 1, XXXXXXXXXX
Long-term Liabilities
Long-term debt 1, XXXXXXXXXX,066.5
Operating lease liabilities XXXXXXXXXX
Other long-term liabilities XXXXXXXXXX
Defe
ed income taxes XXXXXXXXXX
Total long-term liabilities 2, XXXXXXXXXX,575.8
Commitments and Contingencies
Equity
Common stock: Prefe
ed stock—authorized, 100.0 shares; none issued; Common stock—authorized, 600.0 shares of $.01 par value; 198.8 shares issued XXXXXXXXXX
Additional contributed capital XXXXXXXXXX
Retained earnings 2, XXXXXXXXXX,734.5
Accumulated other comprehensive (loss XXXXXXXXXX)
Less treasury stock—at cost (66.2 and 67.0 shares at December 31, 2020 and 2019, respectively) (1, XXXXXXXXXX,883.8)
Total Leggett & Platt, Inc. equity 1, XXXXXXXXXX,312.0
Noncontrolling interest XXXXXXXXXX
Total equity 1, XXXXXXXXXX,312.5
TOTAL LIABILITIES AND EQUITY $ 4,754.0 $ 4,816.4

XXXXXXXXXXThe accompanying notes are an integral part of these financial statements.



LEGGETT & PLATT, INCORPORATED
Consolidated Statements of Cash Flows
Year Ended December 31
(Amounts in millions XXXXXXXXXX
Operating Activities
Net earnings $ 247.7 $ 333.9 $ 306.1
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation XXXXXXXXXX104.3
Amortization of intangibles and supply agreements XXXXXXXXXX8
Long-lived asset impairment XXXXXXXXXX
Goodwill impairment 25.4 — —
Provision for losses on accounts and notes receivable XXXXXXXXXX
Writedown of inventories XXXXXXXXXX
Net gain from sales of assets and businesses XXXXXXXXXX1)
Defe
ed income tax (benefit) expense XXXXXXXXXX2)
Stock-based compensation XXXXXXXXXX5
Pension expense (income), net of contributions XXXXXXXXXX)
Other, net XXXXXXXXXX
Increases/decreases in, excluding effects from acquisitions and divestitures:
Accounts and other receivables XXXXXXXXXX.8)
Inventories XXXXXXXXXX54.3)
Other cu
ent assets XXXXXXXXXX)
Accounts payable XXXXXXXXXX.2
Accrued expenses and other cu
ent liabilities XXXXXXXXXX)
Net Cash Provided by Operating Activities XXXXXXXXXX440.3
Investing Activities
Additions to property, plant and equipment XXXXXXXXXX XXXXXXXXXX)
Purchases of companies, net of cash acquired — (1, XXXXXXXXXX)
Proceeds from sales of assets and businesses XXXXXXXXXX
Other, net XXXXXXXXXX.9)
Net Cash Used for Investing Activities XXXXXXXXXX, XXXXXXXXXX)
Financing Activities
Additions to long-term debt — XXXXXXXXXX —
Payments on long-term debt XXXXXXXXXX XXXXXXXXXX)
Change in commercial paper and short-term debt XXXXXXXXXX.6
Dividends paid XXXXXXXXXX XXXXXXXXXX)
Issuances of common stock 1.5
Answered Same Day Nov 10, 2021

Solution

Akshay Kumar answered on Nov 11 2021
109 Votes
1. What is the company’s fiscal year-end? –
Answer- 31st Dec every year (mentioned on the top of Consolidated Statements of Operations
2. How much do customers actually owe the company? –
Answer: 535.2 million - Trade receivables, net Balance as on 31st Dec 2020
3. Calculate Days Sales Outstanding. (DSO)
Answer - Days Sales Outstanding. (DSO) = Trade receivables*365/Sales
2019 = 564.4*365/ 4,752.5 = 43.35 days
2020 = 535.2*365/ 4,280.2 = 45.63 days
4. Has the company’s credit policy improved or weakened between the two years presented?
Answer Given that -Company’s Days Sales Outstanding has increased over the two years (from above answer), company’s credit policy has weakened.
5. If the company has inventory, what method is used to determine the cost of inventory?
Answer The last-in, first-out (LIFO) method is primarily used by company to determine the cost of inventory (picked up from Inventory Schedule)
6. Have there been any lower-of-cost-or-market (LOCOM) adjustments to inventory?
Answer No, there been no lower-of-cost-or-market (LOCOM) adjustments to inventory.
7. Calculate Days Sales On-hand. (DOH)
Answer - Days Sales On-hand = Inventory*365/COGS
2019 = 636.7*365/ 3,701.9 = 62.80 days
2020 = 645.5*365/ 3,385.7 = 69.59 days
8. What is the average useful life of long-term assets?
Answer –
    Long-term Asset
    Useful Life
    Machinery and equipment
    3-20 years
    Buildings
    5-40 years
    Other items
    3-15 years
9. What is the average age of long-term assets?
Answer -
    Long-term Asset
    Average Age
    Machinery and equipment
    10 years
    Buildings
    27 years
    Other items
    10 years
10. Has there been any impairments of long-lived assets?
Answer- Yes, impairments have been made in Other Long-Lived Asset amounting to 4 million in 2020. (Picked up from Impairment Charge schedule)
11. Does the company have any leased assets?
Answer – Yes, Company has Operating lease assets
12. If the company has a defe
ed tax asset, does the company expect to use all of it?
Answer – Yes, defe
ed tax asset has been used all of it as the defe
ed tax liability exceeds defe
ed tax.
13. If there is goodwill, has there been any impairments or additions during the cu
ent year?
Answer- Yes, Goodwill has been impaired during the cu
ent year. Further, there is additions also thru foreign cu
ency translation adjustment (Picked up from Impairment Charge and GOODWILL AND OTHER INTANGIBLE ASSETS schedule)
14. Does the company have any intangible assets other than goodwill?
Answer – Yes Company have other intangible assets – Patents and Trademarks, Technology, Noncompete Agreements, Customer- Related Intangibles etc. (Picked up from GOODWILL AND OTHER INTANGIBLE ASSETS schedule)
15. Are all the intangible assets other than goodwill amortized?
Yes, All the intangible assets other than goodwill are amortized (Picked up from GOODWILL AND OTHER INTANGIBLE ASSETS schedule)
16. Are there intangible assets other than goodwill that are believed to have an indeterminate useful life?
Answer- No, there are no intangible assets other than goodwill that are believed to have an indeterminate useful life
17. Calculate Days Payable Outstanding. (DPO)
Answer - Days Sales On-hand = Account Payables*365/COGS
2019 = 463.4*365/ 3,701.9 = 45.69 days
2020 = 552.2*365/ 3,385.7 = 49.53 days
18. How much debt does the company have, both short-term and long-term?
Answer – 2020 = Short term debt - 50.9 million; Long term debt - 1,849.3 = Total Debt 1,900.20
2019 = Short term debt - 51.1 million; Long term debt - 2,066.5 = Total Debt 2117.6
19. Be prepared to calculate bond prices and amortization schedules.
Answer – Bond Price is face value 3.8 million as no data available.
Amortization Schedule – The Bond is payable on the due date and there is...
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