1.
Introduction:
Total amount of assets invested in A and G in the current year.
2.
Introduction: The return on assets is a financial ratio which states that how profitably a company has employed its assets. In other words, how the company has utilized its assets to generate income.
The return on assets of the company for the current year of A and G.
3.
Introduction: Expenses are incurred to generate revenues and thus, form an essential part of the income statement.
Requirement 3
The total expenses of the A and G company for the current year.
4.
Introduction: Comparison between similar companies in the same industry is crucial to the assessment of the company’s performance. A company’s financial ratios, when compared with the industry data, can reveal lots of valuable information which the financial statements can not reveal.
Requirement 4
The A company’s and G company’s return on assets for the current year is better or worse than the competitor’s average return.
5.
Introduction: Investors greatly rely on financial or accounting ratios along with the financial statements before making decisions for investing in a particular company. The limitations of financial statements can be removed by incorporating the ratios into the analysis and making investment decisions.
Requirement 5
Whether one should invest in G or A company based on return on assets.
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FINANCIAL AND MANAGERIAL ACCOUNTING
- What is the total amount of assets invested for the current year in (a) Apple and (b) Google?arrow_forwardHow much are current-year expenses for (a) Apple and (b) Google?arrow_forwardComparative 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 >arrow_forward
- Key financial figures for Apple’s two most recent fiscal years follow. $ millions Current Year Prior Year Liabilities + Equity . $375,319 $321,686 Net income . 48,351 45,687 Revenues 229,234 215,639 Required 1. What is the total amount of assets invested in Apple in the current year? 2. What is Apple’s return on assets for the current year? 3. How much are total expenses for Apple for the current year? 4. Is Apple’s current-year return on assets better or worse than competitors’ average of 10% return?arrow_forwardPlease do not give solution in image format thankuarrow_forwardBased on the quarter ended March 2023 financial results on investor.siriusxm.com, as per attached image and discuss whether Sirius XM's recent financial reports indicate that its business model is working. (i) Are its subscription fees increasing or declining? (ii) Are its revenue stream advertising and equipment sales growing or declining? (iii)Does its cost structure allow for acceptable profit marginsarrow_forward
- Please do not give solution in image format thankuarrow_forwardPlease describe what is meant by “Times Interest Earned.” How is it calculated? Suppose you calculated this ratio for a company for two consecutive years and the results were the following: year 2018 – 24.0 year 2017 – 28.0 Please interpret the results. What conclusions can you draw?arrow_forwardAttached 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. 42.21arrow_forward
- XYZ Co. wants to know if its profitability performance has increased from 2009 to 2010. The company had net income of $48,000 in 2009 and $50,000 in 2010. Total assets were $480,000 at the end of 2009, and $560,000 at the end of 2010. Calculate return on assets(ROA) for 2009 and 2010 and Comment on the results.arrow_forwardProfitability Ratios Provide brief definition of what Profitability ratios mean to the company. What are the differences between Apple and Samsung in relationship to each of the ratios? See attached for ratios Net Profit Margin Samsung vs Apple Gross Profit Margin Samsung vs Apple Return on Equity (ROE) Samsung vs Apple Net Return on Assets Samsung vs Apple 3. What does it mean to the company’s profitability? Is it good or bad?arrow_forwardplease answer 3 & 4 only and show solutions thank youarrow_forward
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