Fundamental Accounting Principles
Fundamental Accounting Principles
23rd Edition
ISBN: 9781259536359
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Chapter 16, Problem 10BTN
To determine

1)

Introduction:

Ratio Analysis

• Ratio analysis is a study of several key metrics of a company based on the data presented in its’ financial statements with an objective to evaluate the financial health of a company.

• It is essential for investors, stakeholders, government bodies etc. to evaluate the key metrics of an entity in order to ensure that the company fulfills the going concern principle and displays financial stability.

The key metrics mentioned above include the following:

Cash flows on Total Assets – A measure of the total returns on investment in the form of assets. It is an indicator of the profitability of the assets employed by the business.

• It seeks to measure the relation to the cash flows earned on the total assets i.e. the resources employed by the business to directly or indirectly increase revenue or reduce costs.

Cash flows on Total Assets = Cash flows / Assets x 100

To Determine:

Recent two years cash flows to assets ratio of Samsung

To determine

2)

Introduction:

Ratio Analysis

• Ratio analysis is a study of several key metrics of a company based on the data presented in its’ financial statements with an objective to evaluate the financial health of a company.

• It is essential for investors, stakeholders, government bodies etc. to evaluate the key metrics of an entity in order to ensure that the company fulfills the going concern principle and displays financial stability.

The key metrics mentioned above include the following:

Cash flows on Total Assets – A measure of the total returns on investment in the form of assets. It is an indicator of the profitability of the assets employed by the business.

• It seeks to measure the relation to the cash flows earned on the total assets i.e. the resources employed by the business to directly or indirectly increase revenue or reduce costs.

Cash flows on Total Assets = Cash flows / Assets x 100

To Determine:

Comparison of cash flows to assets ratio of Samsung to that of Apple and Google.

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Chapter 16 Solutions

Fundamental Accounting Principles

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