Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Chapter 10, Problem 2AA
1.
To determine
Compute total asset turnover for the most recent two years for Company A and Company G.
2.
To determine
Identify the company which is more efficient in generating net sales given the total assets it employs.
3.
To determine
State whether each company’s asset turnover underperform or outperform the industry (assumed) asset turnover of 0.5 for both Company A and Company G.
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Comparative figures for Apple and Google follow.
Apple
One Year
Current Year Prior
$338,516 $ 365,725
260,174
265,595
$ millions
Total assets
Net sales
Complete this question by entering your answers in the tabs below.
Apple
Google
Required:
1. Compute total asset turnover for the most recent two years for Apple and Google using the data shown.
2. In the current year, which company is more efficient in generating net sales given total assets?
3. Does asset turnover underperform or outperform the 0.5 industry asset turnover for (a) Apple and (b) Google?
Total Asset Turnover
Two Years
Prior
$375,319
229, 234
Current Year
Required 1 Required 2 Required 3
Compute total asset turnover for the most recent two years for Apple and Google using the data shown.
Note: Round your answers to 2 decimal places.
0.61 times
times
Current Year
$ 275,909
161,857
One Year Prior
times
times
Required 1
Google
One Year
Prior
$ 232,792
136,819
Two Years
Prior
$ 197,295
110,855
Required 2 >
Comparative figures for Apple and Google follow.
Apple
Google
One Year
Prior
Two Years
Prior
Current
Year
$375,319
229,234
One Year
Prior
$321,686
215,639
Two Years
Prior
$290,345
233,715
Current
Year
$ millions
Total assets
Net sales
$197,295
$167,497
$147,461
90,272
74,989
Required:
1. Compute total asset turnover for the most recent two years for Apple and Google using the data shown.
2. In the current year, which company is more efficient in generating net sales given total assets?
3. Does each company's asset turnover underperform or outperform the industry (assumed) asset turnover of 0.5 for: (a) Apple and (b)
Google?
Barry's BBQ had sales revenue for the year of $400 million and net income of $30 million. Total assets were $50 million at the
beginning of the year, and $60 million at the end of the year.
Required:
Calculate the following ratios: (Do not round intermediate calculations. Round your answers to one decimal place.)
1. Return on assets ratio
2. Profit margin ratio
3. Asset turnover ratio
Return on assets
Profit margin
Asset turnover
%
times
Chapter 10 Solutions
Principles of Financial Accounting.
Ch. 10 - A company paid 326,000 for property that included...Ch. 10 - Prob. 2MCQCh. 10 - Prob. 3MCQCh. 10 - Prob. 4MCQCh. 10 - Prob. 5MCQCh. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQ
Ch. 10 - Why is the Modified Accelerated Cost Recovery...Ch. 10 - Prob. 7DQCh. 10 - Identify events that might lead to disposal of a...Ch. 10 - Prob. 9DQCh. 10 - Is the declining-balance method an acceptable way...Ch. 10 - Prob. 11DQCh. 10 - Prob. 12DQCh. 10 - Prob. 13DQCh. 10 - Prob. 14DQCh. 10 - Prob. 15DQCh. 10 - APPLE On its recent balance sheet in Appendix A,...Ch. 10 - Prob. 17DQCh. 10 - Prob. 18DQCh. 10 - Prob. 19DQCh. 10 - Prob. 20DQCh. 10 - Prob. 1QSCh. 10 - Prob. 2QSCh. 10 - Prob. 3QSCh. 10 - Prob. 4QSCh. 10 - Prob. 5QSCh. 10 - Prob. 6QSCh. 10 - On January 1, the Matthews Band pays 65,800 for...Ch. 10 - Prob. 8QSCh. 10 - Revenue and capital expenditures 1. Classify the...Ch. 10 - Disposal of assets Garcia Co. owns equipment that...Ch. 10 - Prob. 11QSCh. 10 - Prob. 12QSCh. 10 - Prob. 13QSCh. 10 - Prob. 14QSCh. 10 - Prob. 15QSCh. 10 - Caleb Co. owns a machine that had cost 42,400 with...Ch. 10 - Prob. 1ECh. 10 - Prob. 2ECh. 10 - Prob. 3ECh. 10 - Prob. 4ECh. 10 - Prob. 5ECh. 10 - Prob. 6ECh. 10 - NewTech purchases computer equipment for 154,000...Ch. 10 - Double-declining-balance depreciation In early...Ch. 10 - Straight-line depreciation and income effects P1...Ch. 10 - Double-declining-balance depreciation P1 Tory...Ch. 10 - Prob. 11ECh. 10 - Prob. 12ECh. 10 - Revising depreciation C2 Apex Fitness Club uses...Ch. 10 - Prob. 14ECh. 10 - Prob. 15ECh. 10 - Prob. 16ECh. 10 - Prob. 17ECh. 10 - Montana Mining Co. pays 3,721,000 for an ore...Ch. 10 - Milano Gallery purchases the copyright on a...Ch. 10 - Prob. 20ECh. 10 - Prob. 21ECh. 10 - Lok Co. reports net sales of 5,856,480 for Year 2...Ch. 10 - Prob. 23ECh. 10 - Prob. 24ECh. 10 - Prob. 1APCh. 10 - Prob. 2APCh. 10 - Prob. 3APCh. 10 - Prob. 4APCh. 10 - Yoshi Company completed the following transactions...Ch. 10 - Onslow Co. purchased a used machine for 178,000...Ch. 10 - On July 23 of the current year, Dakota Mining Co....Ch. 10 - On January 1, Falk Company signed a contract to...Ch. 10 - Nagy Company makes a lump-sum purchase of several...Ch. 10 - Prob. 2BPCh. 10 - Prob. 3BPCh. 10 - Prob. 4BPCh. 10 - Prob. 5BPCh. 10 - On January 1, Walker purchased a used machine for...Ch. 10 - Prob. 7BPCh. 10 - Prob. 8BPCh. 10 - Prob. 10SPCh. 10 - Prob. 1AACh. 10 - Prob. 2AACh. 10 - Prob. 3AACh. 10 - Prob. 1BTNCh. 10 - Prob. 5BTN
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