Return on total Assets: The Return on total assets is profitability ratio that measures the percentage of profit earned on average assets invested in the business. Return on asset is calculated by dividing the net income by average total assets. The formula to calculate Return on assets is as follows: R e t u r n o n a s s e t s = N e t i n c o m e A v e r a g e T o t a l A s s e t s Note: Average total assets are calculated as an average of beginning and ending total assets. The formula to calculate the average total assets is as follows: A v e r a g e t o t a l A s s e t s = ( B e g i n n i n g t o t a l a s s e t s + E n d i n g t o t a l a s s e t s ) 2 Return on total Assets ratio can be borken into its components as follows: Profit Margin Ratio: Profit Margin Ratio is a profitability ratio that represents the percentage income earned on the sales. It is calculated by dividing the Net Income by the Sales. The formulas to calculate the Profit margin is as follows: P r o f i t M a r g i n = O p e r a t i n g I n c o m e S a l e s Asset Turnover Ratio: Asset Turnover Ratio is an efficiency ratio that represents the sales earned on the average assets invested in the business. It is calculated by dividing the Sales by Average total assets. The formulas to calculate the Asset Turnover Ratio is as follows: A s s e t T u r n o v e r R a t i o = S a l e s A v e r a g e t o t a l a s s e t s Requirement-1: To Calculate: The Return on total assets for Apple and Google for two most recent years

Question

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Answer 1

Question

Chapter 15, Problem 2BTN

To determine

Introduction:

Return on total Assets: The Return on total assets is profitability ratio that measures the percentage of profit earned on average assets invested in the business. Return on asset is calculated by dividing the net income by average total assets. The formula to calculate Return on assets is as follows:

$R e t u r n o n a s s e t s = \frac{N e t i n c o m e}{A v e r a g e T o t a l A s s e t s}$

Note: Average total assets are calculated as an average of beginning and ending total assets. The formula to calculate the average total assets is as follows:

$A v e r a g e t o t a l A s s e t s = \frac{(B e g i n n i n g t o t a l a s s e t s + E n d i n g t o t a l a s s e t s)}{2}$

Return on total Assets ratio can be borken into its components as follows:

Profit Margin Ratio:

Profit Margin Ratio is a profitability ratio that represents the percentage income earned on the sales. It is calculated by dividing the Net Income by the Sales. The formulas to calculate the Profit margin is as follows:

$P r o f i t M a r g i n = \frac{O p e r a t i n g I n c o m e}{S a l e s}$

Asset Turnover Ratio:

Asset Turnover Ratio is an efficiency ratio that represents the sales earned on the average assets invested in the business. It is calculated by dividing the Sales by Average total assets. The formulas to calculate the Asset Turnover Ratio is as follows:

$A s s e t T u r n o v e r R a t i o = \frac{S a l e s}{A v e r a g e t o t a l a s s e t s}$

Requirement-1:

To Calculate: The Return on total assets for Apple and Google for two most recent years

To determine

Requirement-2:

To Calculate: The Return on total assets using in its separate components for Apple and Google for two most recent years

To determine

Requirement-3:

To Analyze: The Company’s performance using Return on total assets ratios

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Answer 2

Question

Chapter 15, Problem 2BTN

To determine

Introduction:

Return on total Assets: The Return on total assets is profitability ratio that measures the percentage of profit earned on average assets invested in the business. Return on asset is calculated by dividing the net income by average total assets. The formula to calculate Return on assets is as follows:

$R e t u r n o n a s s e t s = \frac{N e t i n c o m e}{A v e r a g e T o t a l A s s e t s}$

Note: Average total assets are calculated as an average of beginning and ending total assets. The formula to calculate the average total assets is as follows:

$A v e r a g e t o t a l A s s e t s = \frac{(B e g i n n i n g t o t a l a s s e t s + E n d i n g t o t a l a s s e t s)}{2}$

Return on total Assets ratio can be borken into its components as follows:

Profit Margin Ratio:

Profit Margin Ratio is a profitability ratio that represents the percentage income earned on the sales. It is calculated by dividing the Net Income by the Sales. The formulas to calculate the Profit margin is as follows:

$P r o f i t M a r g i n = \frac{O p e r a t i n g I n c o m e}{S a l e s}$

Asset Turnover Ratio:

Asset Turnover Ratio is an efficiency ratio that represents the sales earned on the average assets invested in the business. It is calculated by dividing the Sales by Average total assets. The formulas to calculate the Asset Turnover Ratio is as follows:

$A s s e t T u r n o v e r R a t i o = \frac{S a l e s}{A v e r a g e t o t a l a s s e t s}$

Requirement-1:

To Calculate: The Return on total assets for Apple and Google for two most recent years

To determine

Requirement-2:

To Calculate: The Return on total assets using in its separate components for Apple and Google for two most recent years

To determine

Requirement-3:

To Analyze: The Company’s performance using Return on total assets ratios

Expert Solution & Answer

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See solution

Answer 3

Question

Chapter 15, Problem 2BTN

To determine

Introduction:

Return on total Assets: The Return on total assets is profitability ratio that measures the percentage of profit earned on average assets invested in the business. Return on asset is calculated by dividing the net income by average total assets. The formula to calculate Return on assets is as follows:

$R e t u r n o n a s s e t s = \frac{N e t i n c o m e}{A v e r a g e T o t a l A s s e t s}$

Note: Average total assets are calculated as an average of beginning and ending total assets. The formula to calculate the average total assets is as follows:

$A v e r a g e t o t a l A s s e t s = \frac{(B e g i n n i n g t o t a l a s s e t s + E n d i n g t o t a l a s s e t s)}{2}$

Return on total Assets ratio can be borken into its components as follows:

Profit Margin Ratio:

Profit Margin Ratio is a profitability ratio that represents the percentage income earned on the sales. It is calculated by dividing the Net Income by the Sales. The formulas to calculate the Profit margin is as follows:

$P r o f i t M a r g i n = \frac{O p e r a t i n g I n c o m e}{S a l e s}$

Asset Turnover Ratio:

Asset Turnover Ratio is an efficiency ratio that represents the sales earned on the average assets invested in the business. It is calculated by dividing the Sales by Average total assets. The formulas to calculate the Asset Turnover Ratio is as follows:

$A s s e t T u r n o v e r R a t i o = \frac{S a l e s}{A v e r a g e t o t a l a s s e t s}$

Requirement-1:

To Calculate: The Return on total assets for Apple and Google for two most recent years

To determine

Requirement-2:

To Calculate: The Return on total assets using in its separate components for Apple and Google for two most recent years

To determine

Requirement-3:

To Analyze: The Company’s performance using Return on total assets ratios

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 15, Problem 2BTN

To determine

Introduction:

Return on total Assets: The Return on total assets is profitability ratio that measures the percentage of profit earned on average assets invested in the business. Return on asset is calculated by dividing the net income by average total assets. The formula to calculate Return on assets is as follows:

$R e t u r n o n a s s e t s = \frac{N e t i n c o m e}{A v e r a g e T o t a l A s s e t s}$

Note: Average total assets are calculated as an average of beginning and ending total assets. The formula to calculate the average total assets is as follows:

$A v e r a g e t o t a l A s s e t s = \frac{(B e g i n n i n g t o t a l a s s e t s + E n d i n g t o t a l a s s e t s)}{2}$

Return on total Assets ratio can be borken into its components as follows:

Profit Margin Ratio:

Profit Margin Ratio is a profitability ratio that represents the percentage income earned on the sales. It is calculated by dividing the Net Income by the Sales. The formulas to calculate the Profit margin is as follows:

$P r o f i t M a r g i n = \frac{O p e r a t i n g I n c o m e}{S a l e s}$

Asset Turnover Ratio:

Asset Turnover Ratio is an efficiency ratio that represents the sales earned on the average assets invested in the business. It is calculated by dividing the Sales by Average total assets. The formulas to calculate the Asset Turnover Ratio is as follows:

$A s s e t T u r n o v e r R a t i o = \frac{S a l e s}{A v e r a g e t o t a l a s s e t s}$

Requirement-1:

To Calculate: The Return on total assets for Apple and Google for two most recent years

To determine

Requirement-2:

To Calculate: The Return on total assets using in its separate components for Apple and Google for two most recent years

To determine

Requirement-3:

To Analyze: The Company’s performance using Return on total assets ratios

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 5

Chapter 15, Problem 2BTN

To determine

Introduction:

Return on total Assets: The Return on total assets is profitability ratio that measures the percentage of profit earned on average assets invested in the business. Return on asset is calculated by dividing the net income by average total assets. The formula to calculate Return on assets is as follows:

$R e t u r n o n a s s e t s = \frac{N e t i n c o m e}{A v e r a g e T o t a l A s s e t s}$

Note: Average total assets are calculated as an average of beginning and ending total assets. The formula to calculate the average total assets is as follows:

$A v e r a g e t o t a l A s s e t s = \frac{(B e g i n n i n g t o t a l a s s e t s + E n d i n g t o t a l a s s e t s)}{2}$

Return on total Assets ratio can be borken into its components as follows:

Profit Margin Ratio:

Profit Margin Ratio is a profitability ratio that represents the percentage income earned on the sales. It is calculated by dividing the Net Income by the Sales. The formulas to calculate the Profit margin is as follows:

$P r o f i t M a r g i n = \frac{O p e r a t i n g I n c o m e}{S a l e s}$

Asset Turnover Ratio:

Asset Turnover Ratio is an efficiency ratio that represents the sales earned on the average assets invested in the business. It is calculated by dividing the Sales by Average total assets. The formulas to calculate the Asset Turnover Ratio is as follows:

$A s s e t T u r n o v e r R a t i o = \frac{S a l e s}{A v e r a g e t o t a l a s s e t s}$

Requirement-1:

To Calculate: The Return on total assets for Apple and Google for two most recent years

To determine

Requirement-2:

To Calculate: The Return on total assets using in its separate components for Apple and Google for two most recent years

To determine

Requirement-3:

To Analyze: The Company’s performance using Return on total assets ratios

Answer 6

Chapter 15, Problem 2BTN

To determine

Introduction:

Return on total Assets: The Return on total assets is profitability ratio that measures the percentage of profit earned on average assets invested in the business. Return on asset is calculated by dividing the net income by average total assets. The formula to calculate Return on assets is as follows:

$R e t u r n o n a s s e t s = \frac{N e t i n c o m e}{A v e r a g e T o t a l A s s e t s}$

Note: Average total assets are calculated as an average of beginning and ending total assets. The formula to calculate the average total assets is as follows:

$A v e r a g e t o t a l A s s e t s = \frac{(B e g i n n i n g t o t a l a s s e t s + E n d i n g t o t a l a s s e t s)}{2}$

Return on total Assets ratio can be borken into its components as follows:

Profit Margin Ratio:

Profit Margin Ratio is a profitability ratio that represents the percentage income earned on the sales. It is calculated by dividing the Net Income by the Sales. The formulas to calculate the Profit margin is as follows:

$P r o f i t M a r g i n = \frac{O p e r a t i n g I n c o m e}{S a l e s}$

Asset Turnover Ratio:

Asset Turnover Ratio is an efficiency ratio that represents the sales earned on the average assets invested in the business. It is calculated by dividing the Sales by Average total assets. The formulas to calculate the Asset Turnover Ratio is as follows:

$A s s e t T u r n o v e r R a t i o = \frac{S a l e s}{A v e r a g e t o t a l a s s e t s}$

Requirement-1:

To Calculate: The Return on total assets for Apple and Google for two most recent years

Answer 7

Chapter 15, Problem 2BTN

To determine

Introduction:

Return on total Assets: The Return on total assets is profitability ratio that measures the percentage of profit earned on average assets invested in the business. Return on asset is calculated by dividing the net income by average total assets. The formula to calculate Return on assets is as follows:

$R e t u r n o n a s s e t s = \frac{N e t i n c o m e}{A v e r a g e T o t a l A s s e t s}$

Note: Average total assets are calculated as an average of beginning and ending total assets. The formula to calculate the average total assets is as follows:

$A v e r a g e t o t a l A s s e t s = \frac{(B e g i n n i n g t o t a l a s s e t s + E n d i n g t o t a l a s s e t s)}{2}$

Return on total Assets ratio can be borken into its components as follows:

Profit Margin Ratio:

Profit Margin Ratio is a profitability ratio that represents the percentage income earned on the sales. It is calculated by dividing the Net Income by the Sales. The formulas to calculate the Profit margin is as follows:

$P r o f i t M a r g i n = \frac{O p e r a t i n g I n c o m e}{S a l e s}$

Asset Turnover Ratio:

Asset Turnover Ratio is an efficiency ratio that represents the sales earned on the average assets invested in the business. It is calculated by dividing the Sales by Average total assets. The formulas to calculate the Asset Turnover Ratio is as follows:

$A s s e t T u r n o v e r R a t i o = \frac{S a l e s}{A v e r a g e t o t a l a s s e t s}$

Requirement-1:

To Calculate: The Return on total assets for Apple and Google for two most recent years

Answer 8

To determine

Requirement-2:

To Calculate: The Return on total assets using in its separate components for Apple and Google for two most recent years

Answer 9

To determine

Requirement-2:

To Calculate: The Return on total assets using in its separate components for Apple and Google for two most recent years

Answer 10

To determine

Requirement-3:

To Analyze: The Company’s performance using Return on total assets ratios

Answer 11

To determine

Requirement-3:

To Analyze: The Company’s performance using Return on total assets ratios

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 15 - Prob. 1DQ Ch. 15 - Prob. 2DQ Ch. 15 - Prob. 3DQ Ch. 15 - Prob. 4DQ Ch. 15 - Prob. 5DQ Ch. 15 - Prob. 6DQ Ch. 15 - Prob. 7DQ Ch. 15 - Prob. 8DQ Ch. 15 - Prob. 9DQ Ch. 15 - Prob. 10DQ

Requirement-2: To Calculate: The Return on total assets using in its separate components for Apple and Google for two most recent years

Requirement-3: To Analyze: The Company’s performance using Return on total assets ratios

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Chapter 15 Solutions

Requirement-2:

To Calculate: The Return on total assets using in its separate components for Apple and Google for two most recent years

Requirement-3:

To Analyze: The Company’s performance using Return on total assets ratios