Return on assets Pfizer Inc. (PFE) discovers, produces, and distributes medicines, including Celebrex and Lipitor . Ford (F) Motor Co. develops, markets, and produces automobiles and trucks. Microsoft Corporation (MSFT) develops, produces. and distributes a variety of computer software and hardware products including Windows, Office, Excel, and the Xbox. The following data (in millions) were taken from recent financial statements 01 each company: Pfizer Ford Microsoft Compute the return on assets for each company using the preceding data, and rank the companies’ return on assets from highest to lowest. Round the return on assets to one decimal place.
Return on assets Pfizer Inc. (PFE) discovers, produces, and distributes medicines, including Celebrex and Lipitor . Ford (F) Motor Co. develops, markets, and produces automobiles and trucks. Microsoft Corporation (MSFT) develops, produces. and distributes a variety of computer software and hardware products including Windows, Office, Excel, and the Xbox. The following data (in millions) were taken from recent financial statements 01 each company: Pfizer Ford Microsoft Compute the return on assets for each company using the preceding data, and rank the companies’ return on assets from highest to lowest. Round the return on assets to one decimal place.
Solution Summary: The author explains Return on Assets, a profitability ratio that measures the net profits generated by total assets throughout the period.
Return on assets Pfizer Inc. (PFE) discovers, produces, and distributes medicines, including Celebrex and Lipitor. Ford (F) Motor Co. develops, markets, and produces automobiles and trucks. Microsoft Corporation (MSFT) develops, produces. and distributes a variety of computer software and hardware products including Windows, Office, Excel, and the Xbox.
The following data (in millions) were taken from recent financial statements 01 each company: Pfizer Ford Microsoft
Compute the return on assets for each company using the preceding data, and rank the companies’ return on assets from highest to lowest. Round the return on assets to one decimal place.
Year
Cash Flow
0
-$ 27,000
1
11,000
2
3
14,000
10,000
What is the NPV for the project if the required return is 10 percent?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
NPV
$ 1,873.28
At a required return of 10 percent, should the firm accept this project?
No
Yes
What is the NPV for the project if the required return is 26 percent?
The following were selected from among the transactions completed by Babcock Company during November of the current year:
Nov.
3
Purchased merchandise on account from Moonlight Co., list price $85,000, trade discount 25%, terms FOB destination, 2/10, n/30.
4
Sold merchandise for cash, $37,680. The cost of the goods sold was $22,600.
5
Purchased merchandise on account from Papoose Creek Co., $47,500, terms FOB shipping point, 2/10, n/30, with prepaid freight of $810 added to the invoice.
6
Returned merchandise with an invoice amount of $13,500 ($18,000 list price less trade discount of 25%) purchased on November 3 from Moonlight Co.
8
Sold merchandise on account to Quinn Co., $15,600 with terms n/15. The cost of the goods sold was $9,400.
13
Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14
Sold merchandise with a list price of $236,000 to customers who used VISA and who redeemed $8,000 of pointof- sale coupons. The cost…
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Chapter 1 Solutions
CengageNOWv2, 1 term Printed Access Card for Warren's Survey of Accounting, 8th
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