Selected information related to warranties provided by IBM follows (in millions of U.S. dollars): 2018 2017 2016 $81,591 $81,139 $81,919 Net revenues Standard warranty liability, end of year Charges incurred during the year Extended warranty deferred revenue, end of year Revenue deferred for new extended warranty contracts 158 163 573 260 192 205 606 307 196 204 571 303

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Selected information related to warranties provided by IBM follows (in millions of U.S. dollars):
Net revenues
Standard warranty liability, end of year
Charges incurred during the year
Extended warranty deferred revenue, end of year
Revenue deferred for new extended warranty contracts
2018
2017
2016
$81,591 $81,139 $81,919
158
163
573
260
192
205
606
307
196
204
571
303
Transcribed Image Text:Selected information related to warranties provided by IBM follows (in millions of U.S. dollars): Net revenues Standard warranty liability, end of year Charges incurred during the year Extended warranty deferred revenue, end of year Revenue deferred for new extended warranty contracts 2018 2017 2016 $81,591 $81,139 $81,919 158 163 573 260 192 205 606 307 196 204 571 303
3-a. Compute the ratio of the warranty expense to net revenues for the three years. The Standard warranty liability had a balance of
$221 at the beginning of 2016. (Round percentage answers to 2 decimal places (i.e., 0.1243 should be entered as 12.43).)
Ratio of warranty expense to net revenues
2018
%
2017
%
2016
%
Transcribed Image Text:3-a. Compute the ratio of the warranty expense to net revenues for the three years. The Standard warranty liability had a balance of $221 at the beginning of 2016. (Round percentage answers to 2 decimal places (i.e., 0.1243 should be entered as 12.43).) Ratio of warranty expense to net revenues 2018 % 2017 % 2016 %
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