Time Warner- Financial Acct

Time Warner is a leading media and entertainment company. The company was formed in connection with the merger of America Online, Inc. and Time Warner Inc., now known as Historic TW Inc., which was completed on January 11, 2001. The company changed it name from AOL Time Warner Inc to Time Warner Inc, on October 16, 2003.

Time Warner Inc Financial Statement for 2003 information is as follow:

Current Ratio
Current Asset/ Current Liabilities
         12,268 / 15,518= .79:1         

Quick Ratio
Current Asset ?  Inventory
             12,268 - 1390= 10,878
Current Liabilities
10,878   /    15,518= 0.700
Quick Ratio              0.70:1

Return on Sales
Net income / Sales
        2,639 / 39,565= 6.67%

Return on total assets
Net income / total assets
      2,639   / 121,783= 2.17%

Return on shareholders equity
Net income / shareholder equity
         2,639 / 56,038= 4.71%

Average age of AR
Total Sales / 365
39,565 /365= 108.40
4,908 / 108.40=45.28
Average AR            45.28

Average age of AP
Total cost of sale
(23,285) / 365= 63.79
1,629 / 63.79= 25.54
Average AP            25.54

Inventory Turnover
Total Cost of Sales / Total Inventory
(23,285) / 1,390= 16.75

Debt Equity Ratios
Total Liabili ...
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