Principles of Financial Accounting.
24th Edition
ISBN: 9781260158625
Author: Wild
Publisher: MCG
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Chapter 1, Problem 11AP
1.
To determine
Compute return on assets ratio for Company C and Company P
2.
To determine
Ascertain the Company that is more successful in its total amount of sales to consumers.
3.
To determine
Ascertain the Company that is more successful in returning net income from its assets invested.
4.
To determine
Write a memorandum explaining the Company that could be used for investment.
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Coca-Cola and PepsiCo both produce and market beverages that are direct competitors. Key financialfigures for these businesses for a recent year follow.Key Figures ($ millions) Coca-Cola PepsiCoSales . $46,542 $66,504Net income . 8,634 6,462Average assets . . . . . . . . . . . . . . . . . . . . 76,448 70,518Required Which company is more successful in returning net income from its assets invested?
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Assume Sunland Company has the following reported amounts: Sales revenue $1,000,000, Sales returns and allowances $29,000,
Cost of goods sold $649.599, and Operating expenses $215,600.
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Net sales $
(b) Compute gross profit.
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Coca-Cola and PepsiCo both produce and market beverages that are direct competitors. Key financialfigures for these businesses for a recent year follow.Key Figures ($ millions) Coca-Cola PepsiCoSales . $46,542 $66,504Net income . 8,634 6,462Average assets . . . . . . . . . . . . . . . . . . . . 76,448 70,518Required Compute return on assets for (a) Coca-Cola and (b) PepsiCo.
Chapter 1 Solutions
Principles of Financial Accounting.
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