Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Question
Chapter 15, Problem 1AA
1.
To determine
Compute the return on total assets of Company A for the years ended September 30, 2017 and September 24, 2016.
2.
To determine
Describe whether the change in A Company's return on total assets is favorable or unfavorable.
3.
To determine
Describe whether Company A account for Company B using the equity method or consolidation method.
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Use the following information for the next three questions.
Instrument Corp. has the following investments which were held throughout 2015-2016:
Cost
P300,000
300,000
Fair Value
12/31/15
P400,000
320,000
12/31/16
P380,000
360,000
Trading
Non-trading
What amount of gain or loss would Instrument Corp. report in its income statement for the
year ended December 31, 2016 related to its investments?
a. P20,000 gain.
b. P20,000 loss.
c. P140,000 gain.
d. P80,000 gain.
5.
6.
What amount would be reported as accumulated other comprehensive income related to
investments in Instrument Corp.'s statement of financial position at December 31, 2015?
a. P40,000 gain.
b. P60,000 gain.
c. P20,000 gain.
d. P120,000 gain.
Attached is Apple Inc.'s financial information. Please answer questions 1-4.
1. Apple's working capital turnover in 2021 is
a. 17.27
b. 19.18
c. 14.82
d. 15.35
2. Apple's days to sell inventory in 2021 is
a. 8.99
b. 10.82
c. 9.73
d. 7.61
3. Apple's return on assets ratio in 2021 is
a. 0.46
b. 0.37
c. 0.18
d. 0.29
4. Apple's times interest rate earned ratio in 2021 is
a. 24.38
b. 19.36
c. 37.47
d. 42.21
Compute Measures for DuPont Disaggregation Analysis
Use the information below for 2018 for 3M Company to answer the requirements (perform these computations from the perspective of a 3M shareholder).
($ millions)
2017
Sales
Net income, consolidated
Net income attributable to 3M shareholders
Assets
Total equity
Equity attributable to 3M shareholders
a. Compute return on equity (ROE).
Round answer to two decimal places (ex: 0.12345 = 12.35%)
54.6
* %
b. Compute the DuPont model component measures for profit margin, asset turnover, and financial leverage.
• Round profit margin to two decimal places (ex: 0.12345= 12.35%)
• Round asset turnover and financial leverage to three decimal places.
Profit margin 16.33
Asset turnover 0.88
2018
$32,765
5,363
5,349
36,500 $37,987
9,848 11,622
9,796 11,563
* %
Financial leverage 3.73
c. Compute ROA
Round answer to two decimal places (ex: 0.12345= 12.35%)
14.36
* %
x
Chapter 15 Solutions
Principles of Financial Accounting.
Ch. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Under what conditions should investments be...
Ch. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQCh. 15 - Prob. 11DQCh. 15 - Prob. 12DQCh. 15 - Refer to Googles statement of comprehensive income...Ch. 15 - Prob. 14DQCh. 15 - Which of the following statements are true of...Ch. 15 - Prob. 2QSCh. 15 - Prob. 3QSCh. 15 - Kitty Company began operations in the current year...Ch. 15 - Refer to the information in QS 15-4. (1) After the...Ch. 15 - Prob. 6QSCh. 15 - Prob. 7QSCh. 15 - Prob. 8QSCh. 15 - Prob. 9QSCh. 15 - Prob. 10QSCh. 15 - Prob. 11QSCh. 15 - Prepare Tiker Companys journal entries to record...Ch. 15 - Prob. 13QSCh. 15 - Prob. 14QSCh. 15 - Prob. 15QSCh. 15 - Prob. 16QSCh. 15 - Prob. 17QSCh. 15 - Prob. 18QSCh. 15 - Debt and equity securities and short- and...Ch. 15 - Prob. 2ECh. 15 - Prepare Natura Co.s journal entries to record the...Ch. 15 - Prob. 4ECh. 15 - On December 31, Lujack Co. held the following...Ch. 15 - Prob. 6ECh. 15 - Prob. 7ECh. 15 - Prob. 8ECh. 15 - Prob. 9ECh. 15 - Prob. 10ECh. 15 - Prob. 11ECh. 15 - Prob. 12ECh. 15 - Prob. 13ECh. 15 - Selected accounts from GermX Co.s adjusted trial...Ch. 15 - Prob. 15ECh. 15 - Use the following information of Prescrip Co. to...Ch. 15 - Prob. 17ECh. 15 - Prob. 1APCh. 15 - Mead Inc. began operations in Year 1. Following is...Ch. 15 - Stoll Co.s long-term available-for-sale portfolio...Ch. 15 - Rose Company had no short-term investments prior...Ch. 15 - Prob. 5APCh. 15 - Prob. 6APCh. 15 - Prob. 1BPCh. 15 - Paris Inc. began operations in Year 1. Following...Ch. 15 - Troys long-term available-for-sale portfolio at...Ch. 15 - Prob. 4BPCh. 15 - Prob. 5BPCh. 15 - Prob. 6BPCh. 15 - Prob. 15SPCh. 15 - Prob. 1AACh. 15 - Prob. 2AACh. 15 - Prob. 3AACh. 15 - Prob. 1BTNCh. 15 - Prob. 2BTNCh. 15 - Prob. 3BTNCh. 15 - Prob. 5BTN
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