Financial Accounting: Information for Decisions
8th Edition
ISBN: 9781259533006
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 1, Problem 4PSA
Summary Introduction
Introduction: The financial statements of a company indicate the profitability and financial position of the business for a particular period. These statements include income statement,
To prepare: The income statement of the company.
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Forecast an Income StatementSeagate Technology reports the following income statement for fiscal 2019.
SEGATE TECHNOLOGY PLC
Consolidated Statement of Income
For Year Ended June 28, 2019, $ millions
Revenue
$20,780
Cost of revenue
14,916
Product development
1982
Marketing and administrative
906
Amortization of intangibles
46
Restructuring and other, net
(44)
Total operating expenses
17,806
Income from operations
2,974
Interest income
168
Interest expense
(448)
Other, net
50
Other expense, net
(230)
Income before income taxes
2,744
(Benefit) provision for income taxes
(1,280)
Net income
$4,024
Forecast Seagate’s 2020 income statement assuming the following income statement relations ($ millions).
Revenue growth
5%
Cost of revenue
71.8% of revenue
Product development
9.5% of revenue
Marketing and administrative
4.4% of revenue
Amortization of intangibles
No change
Restructuring and other, net
$0
Interest income
No change…
An extract from an outdoor
equipment company's 2021 financial
statements follows: Income
statement Year ended December 31,
2021 Year ended December 31, 2020
Sales 27,764 26,982 Net income
1,132 (322) What was the company's
profitability ratio for 2021?
O A. 13.7%
OB. 8.8%
O C. 4.08%
O D. 7.9%
Selected balance sheet and income statement information for Home Depot follows.
$ millions
Jan. 31, 2016
Feb. 01, 2015
Operating assets
$40,683
$38,573
Nonoperating assets
2,266
1,773
Total assets
42,949
40,346
Operating liabilities
15,043
13,552
Nonoperating liabilities
21,275
17,157
Total liabilities
36,318
30,709
Sales
89,234
Net operating profit before tax (NOPBT)
12,124
Nonoperting expense before tax
803
Tax expense
4,001
Net income
7,320
Round answers to two decimal places (ex: 0.12345 = 12.35%).
a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 37%.Answer%
b. Disaggregate RNOA into components of profitability and productivity and show that the product of the two components equals RNOA. Assume a statutory tax rate of 37%.NOPM Answer%NOAT Answer
Chapter 1 Solutions
Financial Accounting: Information for Decisions
Ch. 1 - Prob. 1DQCh. 1 - Technology is increasingly used to process...Ch. 1 - Identify four kinds of external users and describe...Ch. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQCh. 1 - Describe the internal role of accounting for...Ch. 1 - Identify three types of services typically offered...Ch. 1 - Prob. 8DQCh. 1 - Why is accounting described as a service activity?Ch. 1 - What are some accounting-related professions?
Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - What does the concept of objectivity imply for...Ch. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - What do accountants mean by the term revenue?Ch. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Define return and risk. Discuss the trade-off...Ch. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - Prob. 33DQCh. 1 - Prob. 34DQCh. 1 - Choose from the following term or phrase a through...Ch. 1 - Prob. 2QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Prob. 7QSCh. 1 - Applying the accounting equation A1 Use the...Ch. 1 - Prob. 9QSCh. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 1ECh. 1 - Identifying accounting users and uses C2 Part A....Ch. 1 - Prob. 3ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Determine the missing amount from each of the...Ch. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Use the information in Exercise 1-15 to prepare an...Ch. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 1PSACh. 1 - Prob. 2PSACh. 1 - Prob. 3PSACh. 1 - Prob. 4PSACh. 1 - Prob. 5PSACh. 1 - Prob. 6PSACh. 1 - Prob. 8PSACh. 1 - Prob. 9PSACh. 1 - Prob. 10PSACh. 1 - Prob. 11PSACh. 1 - Prob. 12PSACh. 1 - Prob. 13PSACh. 1 - Prob. 14PSACh. 1 - Prob. 1PSBCh. 1 - Prob. 3PSBCh. 1 - Prob. 4PSBCh. 1 - Prob. 5PSBCh. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Prob. 8PSBCh. 1 - Prob. 9PSBCh. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - Prob. 12PSBCh. 1 - Prob. 13PSBCh. 1 - Prob. 14PSBCh. 1 - Prob. 1SPCh. 1 - Prob. 2BTNCh. 1 - Prob. 7BTNCh. 1 - Prob. 9BTN
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