Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 2, Problem 3AA
GLOBAL ANALYSIS A2
Key comparative figures for Apple, Google, and Samsung follow.
In millions | Samsung | Apple Google | ||
Current Year | Prior Year | Current Year | Current Year | |
Total liabilities | W 87,260,662 | W 69,211,291 | $241,272 | $ 44,793 |
Total assets | 301,752,090 | 262,174,324 | 375,319 | 197,295 |
Required
1. Compute Samsung's debt ratio for the current year and prior year.
2. Is Samsung on a trend toward increased or decreased financial leverage?
3. Looking at the current-year debt ratio, is Samsung a more risky or Jess risky investment than (a) Apple and (b) Google?
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TABLE 7.7 Financlal projoctions for Prairie Home Stores, 2016-2021 (figures in millions)
2016
2017
2018
2019
2020
2021
Rapid-Growth Scenario
Book valuo, start of year
S80
$ 92
$105.8
$121.7
$139.9
$146.9
Earnings
12
13.8
15.9
18.3
21.0
22.0
14
14.7
Dividonds
12
13.8
15.9
18.3
7.0
7.4
Rotainod earnings
Book value, and of yoar
92
105.8
121.7
139.9
146.9
154.3
Constant-Growth Scenario
Book value, start of year
$80
$84
$88.2
$92.6
$ 97.2
$102.1
Earnings
12
12.6
13.2
13.9
14.6
15.3
Dividonds
8.
8.4
8.8
9.3
9.7
10.2
Rotainod earnings
4
4.2
4.4
4.6
4.9
5.1
Book value, end of year
84
88.2
92.6
97.2
102.1
107.2
Notos:
1 Both panels assumo oarnings oqual to 15% of start-of-yoar book valuo. This proftability rato is constant.
2 Tho top panol assumos afl carnings aro reinvosted from 2016 to 2019. In 2020 and lator yoars, two-thirds of oarnings aro paid
out as dividends and one-third roinvosted.
3. Tho botlom panel assumos two-thirds of oarnings aro paid out as dividends in all yoars.
4. Columna…
Key comparative figures ($ millions) for both Apple and Google follow.
Apple
Google
Key Figure
Current Year
Prior Year
Current Year
Prior Year
Liabilities + Equity
$375,319
$321,686
$197,295
$167,497
Net income
48,351
45,687
12,662
19,478
Revenues
229,234
215,639
110,855
90,272
Required:1. What is the total amount of assets invested for the current year in (a) Apple and (b) Google?2. What is the current-year return on assets for (a) Apple and (b) Google?3. How much are current-year expenses for (a) Apple and (b) Google?4-a. Is the current-year return on assets better than the 10% return of competitors for Apple?4-b. Is the current-year return on assets better than the 10% return of competitors for Google?5. Relying only on return on assets, would we invest in Google or Apple?
Question: Calculate the average annual growth rate of Microsoft from the fiscal year ending 2009 until the fiscal year ending.
EBIT 2009 - 2019:
2019
2018
2017
2016
2015
2014
2013
2012
2011
2010
2009
42,933,000
35,011,000
31,315,000
26,236,000
20,489,000
27,780,000
26,556,000
21,763,000
27,161,000
24,157,000
20,363,000
Is 9.34% correct?
Chapter 2 Solutions
Principles of Financial Accounting.
Ch. 2 - Amalia Company received its utility bill for the...Ch. 2 - On May 1, Mattingly Lawn Service collected 2,500...Ch. 2 - Prob. 3MCQCh. 2 - A trial balance prepared at year-end shows total...Ch. 2 - Prob. 5MCQCh. 2 - Prob. 1DQCh. 2 - What is the difference between a note payable and...Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Are debits or credits typically listed first in...
Ch. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 2 - Which financial statement is sometimes called the...Ch. 2 - APPLE Review the Apple balance sheet in Appendix...Ch. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Prob. 1QSCh. 2 - Identifying financial statement accounts C2...Ch. 2 - Prob. 3QSCh. 2 - Prob. 4QSCh. 2 - Linking debit or credit with normal balance C4...Ch. 2 - Analyzing transactions and preparing journal...Ch. 2 - Prob. 7QSCh. 2 - Identifying a posting error A trial balance has...Ch. 2 - Prob. 9QSCh. 2 - Prob. 10QSCh. 2 - Prob. 11QSCh. 2 - Preparing an income statement P3 Liu Zhang...Ch. 2 - Prob. 13QSCh. 2 - Preparing a balance sheet P3 Use the information...Ch. 2 - Prob. 15QSCh. 2 - Prob. 1ECh. 2 - Identifying and classifying accounts Enter the...Ch. 2 - Identifying a ledger and chart of accounts C3...Ch. 2 - Prob. 4ECh. 2 - Analyzing effects of a compound entry A1 Groro Co....Ch. 2 - Prob. 6ECh. 2 - Prob. 7ECh. 2 - Preparing T-accounts (ledger) and a trial balance...Ch. 2 - Prob. 9ECh. 2 - Prob. 10ECh. 2 - Prob. 11ECh. 2 - Analyzing and journalizing transactions involving...Ch. 2 - Prob. 13ECh. 2 - Prob. 14ECh. 2 - Prob. 15ECh. 2 - Prob. 16ECh. 2 - Prob. 17ECh. 2 - Prob. 18ECh. 2 - Prob. 19ECh. 2 - Identifying effects of posting errors on the trial...Ch. 2 - Analyzing a trial balance error You are told the...Ch. 2 - Calculating and interpreting the debt ratio A2...Ch. 2 - Prob. 23ECh. 2 - Prob. 5APCh. 2 - Prob. 6APCh. 2 - Prob. 7APCh. 2 - The accounting records of Tama Co. show the...Ch. 2 - Prob. 6BPCh. 2 - Prob. 7BPCh. 2 - Prob. 1AACh. 2 - Prob. 2AACh. 2 - GLOBAL ANALYSIS A2 Key comparative figures for...Ch. 2 - Prob. 1BTNCh. 2 - COMMUNICATING IN PRACTICE Lila Corentine is an...Ch. 2 - Prob. 3BTNCh. 2 - Prob. 5BTNCh. 2 - Prob. 6BTN
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