FINANCIAL+MANAG.ACCT.
9th Edition
ISBN: 9781260728774
Author: Wild
Publisher: RENT MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 3.1AA
a.
To determine
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.
Requirement 1
The return on assets of S Co. for the current year and the prior year.
b.
To determine
Introduction: Multiple factors can be responsible for causing the financial ratios to change from one year to another. The reasons for such change are then further analyzed in order to take appropriate action.
Requirement 2
Whether S Co.’s return on assets has shown a favorable or unfavorable change.
c.
To determine
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 3
The S Co.’s return on assets for the current year is better or worse than A Co. and G Co.'s return on assets.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What is the return on assets for Samsung in the (a) current year and (b) prior year?
Is the current-year return on assets better than the 10% return of competitors for (a) Apple and (b) Google?
Please do not give image format
Chapter 1 Solutions
FINANCIAL+MANAG.ACCT.
Ch. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Applying the accounting equation A1 Total assets...Ch. 1 - Applying the accounting equation A1 Use the...Ch. 1 - Prob. 9QSCh. 1 - Identifying effects of transactions using...
Ch. 1 - Identifying effects of transactions using...Ch. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Identifying assets, liabilities, and equity P2...Ch. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Prob. 18QSCh. 1 - Prob. 19QSCh. 1 - Prob. 20QSCh. 1 - Prob. 21QSCh. 1 - Prob. 1ECh. 1 - Exercise 1-2 Identifying accounting users and uses...Ch. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Exercise 1-8 Using the accounting equation A1...Ch. 1 - Exercise 1-9 Using the accounting equation...Ch. 1 - Prob. 11ECh. 1 - Exercise 1-10 Analysis using the accounting...Ch. 1 - Exercise 1-11 Identifying effects of transactions...Ch. 1 - Prob. 14ECh. 1 - Exercise 1-13 Identifying effects of transactions...Ch. 1 - Prob. 16ECh. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Prob. 23ECh. 1 - Prob. 24ECh. 1 - Prob. 25ECh. 1 - Problem 1-1A Identifying effects of transactions...Ch. 1 - Problem 1-2A Computing missing information using...Ch. 1 - Prob. 3PSACh. 1 - Problem 1-4A preparing a statement of retained...Ch. 1 - Problem 1-5A Preparing a balances sheet P2
Use the...Ch. 1 - Problem 1-6A Preparing a statement of cash flows...Ch. 1 - Problem 1-7A Analyzing transactions and preparing...Ch. 1 - Problem 1-8.4 Analyzing effects of transactions C4...Ch. 1 - Prob. 9PSACh. 1 - Prob. 10PSACh. 1 - Prob. 11PSACh. 1 - Prob. 1PSBCh. 1 - Problem 1-2B Computing missing information using...Ch. 1 - Prob. 3PSBCh. 1 - Prob. 4PSBCh. 1 - Problem 1-5B Preparing a balance sheet P2 Use the...Ch. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Problem 1-8B Analyzing effects of transactions C4...Ch. 1 - Prob. 9PSBCh. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - Prob. 1SPCh. 1 - Prob. 1.1AACh. 1 - Prob. 1.2AACh. 1 - Prob. 1.3AACh. 1 - Prob. 1.4AACh. 1 - Prob. 2.1AACh. 1 - Prob. 2.2AACh. 1 - Prob. 2.3AACh. 1 - Prob. 2.4AACh. 1 - Prob. 2.5AACh. 1 - Prob. 3.1AACh. 1 - Prob. 3.2AACh. 1 - Prob. 3.3AACh. 1 - Prob. 1DQCh. 1 - Technology is increasing used to process...Ch. 1 - Prob. 3DQCh. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQCh. 1 - Describe the internal role of accounting for...Ch. 1 - 7. Identify three types of services typically...Ch. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - 10. What are some accounting-related professions?
Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - Prob. 20DQCh. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Prob. 3BTNCh. 1 - Prob. 4BTN
Knowledge Booster
Similar questions
- Questions related to the Statement of Profit or Loss a. Revenue is the income generated from normal business operations. What is the business operation of Emirates (i.e. what do they do? Do they provide services or sell products? What is the service they provide or product they sell in order to generate revenues?) . b. Did Emirates make profit in 2018 and 2017? Was there an increase or decrease? Justify your answers by providing the figures from the statement. c. Explain the Difference between Revenue and Other operating income – Provide one item that can be listed under Revenue and one item that can be listed under Other operating income of Emirates. You can refer to the corresponding Notes to the Financial Statements of Emirates. . PLEASE MAKE SURE THE ANSWER IS CORRECT 100%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_forwardRelying only on return on assets, would we invest in Google or Apple?arrow_forward
- Compute returns on assets for AT&T and Verizon and answer the question below. Be sure to show your work. Key figures($ millions). AT&T Verizon Sales 126,723 110,875 Net Income 4,184 10,198 Average Assets 269,868 225,233 AT&T Verizon Which company is more successful in returning net income from its assets invested?arrow_forwardQUESTION 3 (MODULE 3 - ANALYSIS OF ROE AND ITS BREAKDOWN): On the ground of the following financial data of the company, evaluate the change of its ROE (from 2015 to 2016), together with ROE's three drivers (net profitability, asset turnover and financial leverage), by answering the following questions: 1) Did the company's ROE grow or fall between 2015 and 2016? 2) Was the change of ROE (between 2015 and 2016) attributable more to the operating factors (profitability and turnover) or to the financial leverage? 3) Should the observed change of the company's ROE, combined with changes of its three drivers, be treated as a positive (or negative) one? Company's financial statements: Income statement Sales revenues 2015 234 146 2016 421 314 Operating profit 36 258 42 147 Net earnings 9 268 16 146 Balance sheet 31.12.2015 31.12.2016 Fixed assets 95 755 154 812 Current assets, including: 75 209 131 939 TOTAL ASSETS 170 964 286 751 Shareholder's equity 89 266 97 149 Long-term liabilities 34…arrow_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_forwardDisney started inthe 1920sasan animation studio.How has the company diversified its offering since then?Analyze the company’smost current“FiscalAnnual Report†to find out its primary revenue streams. What are the primary businesses that Disney operates today?arrow_forwarda. Revenue is the income generated from normal business operations. What is the business operation of Emirates (i.e. what do they do? Do they provide services or sell products? What is the service they provide or product they sell in order to generate revenues? b. . Did Emirates make profit in 2018 and 2017? Was there an increase or decrease? Justify your answers by providing the figures from the statement c. Explain the Difference between Revenue and Other operating income - Provide one item that can be listed under Revenue and one item that can be listed under Other operating income of Emirates. You can refer to the corresponding Notes to the Financial Statements of Emirates.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning