
a.
To calculate: The net income to total revenue ratio.
Introduction:
Autodesk Incorporation:
It is a global software and services company. This company offers AutoCAD, a professional designing software tool.
Net income:
Net income represents the valuation of the organizations, which is calculated by subtracting the expenses, interests, and taxes from the revenues from operations. The net income is used by the organization for computing earnings per share.
Revenue:
It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.
b.
To calculate: The cost of revenue to total revenue ratio.
Introduction:
Autodesk Incorporation:
It is a global software and services company. This company offers AutoCAD, a professional designing software tool.
Cost of revenue:
The cost of revenue is the total cost of production and distribution of the goods or services to the customers. It is further segregated into direct and indirect costs.
Revenue:
It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.
c.
To calculate: The selling, general, and administrative expenses to the total revenue ratio.
Introduction:
Autodesk Incorporation:
It is a global software and services company. This company offers AutoCAD, a professional designing software tool.
Selling, general, and administrative (SGA) expense:
The expenses incurred by a company for selling or distributing such as carriage outward or freight for carrying the goods from place of production to the place of consumption. It also includes costs of general nature such as electricity as well as administrative nature such as salaries and wages.
Revenue:
It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.
d.
To calculate: The income tax expense to the total revenue ratio.
Introduction:
Autodesk Incorporation:
It is a global software and services company. This company offers AutoCAD, a professional designing software tool.
Income tax expense:
Income tax is the amount of tax imposed by the government on the business firms. Every business organization is subject to income tax, if there are no exemptions available in tax laws, depending on the tax slab it falls in.
Revenue:
It is the income generated in the business during the normal course of business operations. It also includes the deductions and discounts for the returned goods. Revenue is the amount from which the costs are subtracted to obtain gross income of the business. Revenue is also commonly referred to as sales in the income statement.

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Chapter 18 Solutions
Foundations of Financial Management
- Chee Chew's portfolio has a beta of 1.27 and earned a return of 13.6% during the year just ended. The risk-free rate is currently 4.6%. The return on the market portfolio during the year just ended was 10.5%. a. Calculate Jensen's measure (Jensen's alpha) for Chee's portfolio for the year just ended. b. Compare the performance of Chee's portfolio found in part a to that of Carri Uhl's portfolio, which has a Jensen's measure of -0.25. Which portfolio performed better? Explain. c. Use your findings in part a to discuss the performance of Chee's portfolio during the period just ended.arrow_forwardDuring the year just ended, Anna Schultz's portfolio, which has a beta of 0.91, earned a return of 8.1%. The risk-free rate is currently 4.1%, and the return on the market portfolio during the year just ended was 9.4%. a. Calculate Treynor's measure for Anna's portfolio for the year just ended. b. Compare the performance of Anna's portfolio found in part a to that of Stacey Quant's portfolio, which has a Treynor's measure of 1.39%. Which portfolio performed better? Explain. c. Calculate Treynor's measure for the market portfolio for the year just ended. d. Use your findings in parts a and c to discuss the performance of Anna's portfolio relative to the market during the year just ended.arrow_forwardNeed answer.arrow_forward
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