ADV. ACCT CONNECT STAND ALONE
13th Edition
ISBN: 9781266295744
Author: Hoyle
Publisher: MCG
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Question
Chapter 8, Problem 9DYS
1.
To determine
Calculate the following measures for each of Company C’s operating segments (excluding Bottling Investments and Corporate):
Percentage of total net revenues, 2013 and 2014.
Percentage change in total net revenues, 2012 to 2013 and 2013 to 2014.
Operating income as a percentage of total net revenues (profit margin), 2013 and 2014
1.
Expert Solution
Explanation of Solution
Percentage of total net revenues, 2013 and 2014
| 2014 | 2013 | |||
| Total net revenues | Percentage | Total net revenues | Percentage | |
| Eurasia & Africa | $ 2,730 | 7.03% | $ 2,763 | 7.08% |
| Europe | $ 5,536 | 14.25% | $ 5,334 | 13.66% |
| Latin America | $ 4,657 | 11.99% | $ 4,939 | 12.65% |
| North America | $ 21,479 | 55.32% | $ 21,590 | 55.32% |
| Asia Pacific | $ 5,746 | 14.80% | $ 5,869 | 15.03% |
| Eliminations | $ (1,325) | (3.41%) | $ (1,471) | (3.76%) |
| Total | $ 38,823 | 100% | $ 39,024 | 100% |
Table: (1)
Percentage change in total net revenues, 2012 to 2013 and 2013 to 2014
| 2014 | 2013 | 2012 | |||||
| Total net revenues | Total net revenues | Total net revenues | Change 2013 to 2014 | Change 2012 to 2013 | Percentage 2013 to 2012 | Percentage 2012 to 2013 | |
| Eurasia & Africa | $ 2,730 | $ 2,763 | $ 2,697 | $ (33) | $ 66 | -1.19% | 2.45% |
| Europe | $ 5,536 | $ 5,334 | $ 5,123 | $ 202 | $ 211 | 3.79% | 4.12% |
| Latin America | $ 4,657 | $ 4,939 | $ 4,831 | $ (282) | $ 108 | -5.71% | 2.24% |
| North America | $ 21,479 | $ 21,590 | $ 21,680 | $ (111) | $ (90) | -0.51% | -0.42% |
| Asia Pacific | $ 5,746 | $ 5,869 | $ 6,308 | $ (123) | $ (439) | -2.10% | -6.96% |
| Eliminations | $ (1,325) | $ (1,471) | $ (1,644) | $ 146 | $ 173 | -9.93% | -10.52% |
| Total | $ 38,823 | $ 39,024 | $ 38,995 | $ (201) | $ 29 | -0.52% | 0.07% |
Table: (2)
Operating income as a percentage of total net revenues (profit margin), 2013 and 2014.
| 2014 | 2013 | |||||
| Total net revenues | Operating income | Percentage | Total net revenues | Operating income | Percentage | |
| Eurasia & Africa | $ 2,730 | $ 1,084 | 39.71% | $ 2,763 | $ 1,087 | 39.34% |
| Europe | $ 5,536 | $ 2,852 | 51.52% | $ 5,334 | $ 2,859 | 53.60% |
| Latin America | $ 4,657 | $ 2,316 | 49.73% | $ 4,939 | $ 2,908 | 58.88% |
| North America | $ 21,479 | $ 2,447 | 11.39% | $ 21,590 | $ 2,432 | 11.26% |
| Asia Pacific | $ 5,746 | $ 2,448 | 42.60% | $ 5,869 | $ 2,478 | 42.22% |
| Eliminations | $ (1,325) | — | 0.00% | $ (1,471) | — | 0.00% |
| Total | $ 38,823 | $ 11,147 | 28.71% | $ 39,024 | $ 11,764 | 30.15% |
Table: (3)
2.
To determine
Determine whether company C should attempt to expand its operations in a particular region of the world to increase operating revenues and operating income.
2.
Expert Solution
Explanation of Solution
The company C should attempt to expand its operations in Europe as the net revenues and operating income are high and are increasing year by year in Europe.
3.
To determine
List any additional information required to conduct the analysis.
3.
Expert Solution
Explanation of Solution
Additional information that is required to conduct the analysis of the study is:
1.
2. Data for the previous year of the company.
3. Data for the competitors company.
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Chapter 8 Solutions
ADV. ACCT CONNECT STAND ALONE
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - The management approach requires a firm to define...Ch. 8 - What is an operating segment?Ch. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - Prob. 11QCh. 8 - To satisfy geographic area disclosure...Ch. 8 - Prob. 13QCh. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - Prob. 16QCh. 8 - Prob. 17QCh. 8 - How does a company determine the amount of income...Ch. 8 - Prob. 19QCh. 8 - Prob. 20QCh. 8 - What type of segment information must companies...Ch. 8 - How would an annual bonus paid at year-end be...Ch. 8 - Which of the following does U.S. GAAP not consider...Ch. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Which of the following is not necessarily true for...Ch. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Which of the following items is required to be...Ch. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Which of the following information items with...Ch. 8 - Prob. 14PCh. 8 - In considering interim financial reporting, how...Ch. 8 - How should material seasonal variations in revenue...Ch. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Niceville Company pays property taxes of 100,000...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 30PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38PCh. 8 - Noventis Corporation prepared the following...Ch. 8 - Prob. 40PCh. 8 - Prob. 41PCh. 8 - Prob. 5DYSCh. 8 - ACCOUNTING STANDARDS CASE 1SEGMENT REPORTING...Ch. 8 - ACCOUNTING STANDARDS CASE 2INTERIM REPORTING...Ch. 8 - Prob. 8DYSCh. 8 - Prob. 9DYS
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