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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Key comparative figures for Apple and Google follow.
Apple
Google
$ millions
Current Year
Prior Year
Current Year
Prior Year
Total liabilities
$241,272
$193,437
$ 44,793
$ 28,461
Total assets
375,319
321,686
197,295
167,497
Required:1. What is the debt ratio for Apple in the current year and for the prior year?2. What is the debt ratio for Google in the current year and for the prior year?3. Which of the two companies has the higher degree of financial leverage in the current year?
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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