Profit Margin: The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales. Requirement 1: To compute profit margin percentage for Apple and Google company respectively.

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Answer 1

Question

Chapter 9, Problem 2AA

To determine

Concept introduction:

Profit Margin:

The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales.

Requirement 1:

To compute profit margin percentage for Apple and Google company respectively.

To determine

Concept introduction:

Investment Turnover:

The investment turnover for a company is calculated as the ratio of net sales to average investments during the period. The average investments calculated as the sum average of opening and closing balance of invested assets in the company respectively.

Requirement 2:

To compute investment turnover ratio for Apple and Google company respectively.

To determine

Concept introduction:

Ratio Analysis:

The comparison of ratios such as profit margin and investment turnover to evaluate the performance during the period for the given companies is known as ratio analysis.

Requirement 3:

To explain:

To enumerate the reasons for better performance based on the information provided for fiscal year 2017 for Apple and Google company.

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Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's expenses, Gross margin, and Net income?

Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's assets, Liabilities, and Equity?

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Answer 2

Question

Chapter 9, Problem 2AA

To determine

Concept introduction:

Profit Margin:

The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales.

Requirement 1:

To compute profit margin percentage for Apple and Google company respectively.

To determine

Concept introduction:

Investment Turnover:

The investment turnover for a company is calculated as the ratio of net sales to average investments during the period. The average investments calculated as the sum average of opening and closing balance of invested assets in the company respectively.

Requirement 2:

To compute investment turnover ratio for Apple and Google company respectively.

To determine

Concept introduction:

Ratio Analysis:

The comparison of ratios such as profit margin and investment turnover to evaluate the performance during the period for the given companies is known as ratio analysis.

Requirement 3:

To explain:

To enumerate the reasons for better performance based on the information provided for fiscal year 2017 for Apple and Google company.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 9, Problem 2AA

To determine

Concept introduction:

Profit Margin:

The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales.

Requirement 1:

To compute profit margin percentage for Apple and Google company respectively.

To determine

Concept introduction:

Investment Turnover:

The investment turnover for a company is calculated as the ratio of net sales to average investments during the period. The average investments calculated as the sum average of opening and closing balance of invested assets in the company respectively.

Requirement 2:

To compute investment turnover ratio for Apple and Google company respectively.

To determine

Concept introduction:

Ratio Analysis:

The comparison of ratios such as profit margin and investment turnover to evaluate the performance during the period for the given companies is known as ratio analysis.

Requirement 3:

To explain:

To enumerate the reasons for better performance based on the information provided for fiscal year 2017 for Apple and Google company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 9, Problem 2AA

To determine

Concept introduction:

Profit Margin:

The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales.

Requirement 1:

To compute profit margin percentage for Apple and Google company respectively.

To determine

Concept introduction:

Investment Turnover:

The investment turnover for a company is calculated as the ratio of net sales to average investments during the period. The average investments calculated as the sum average of opening and closing balance of invested assets in the company respectively.

Requirement 2:

To compute investment turnover ratio for Apple and Google company respectively.

To determine

Concept introduction:

Ratio Analysis:

The comparison of ratios such as profit margin and investment turnover to evaluate the performance during the period for the given companies is known as ratio analysis.

Requirement 3:

To explain:

To enumerate the reasons for better performance based on the information provided for fiscal year 2017 for Apple and Google company.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 9, Problem 2AA

To determine

Concept introduction:

Profit Margin:

The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales.

Requirement 1:

To compute profit margin percentage for Apple and Google company respectively.

To determine

Concept introduction:

Investment Turnover:

The investment turnover for a company is calculated as the ratio of net sales to average investments during the period. The average investments calculated as the sum average of opening and closing balance of invested assets in the company respectively.

Requirement 2:

To compute investment turnover ratio for Apple and Google company respectively.

To determine

Concept introduction:

Ratio Analysis:

The comparison of ratios such as profit margin and investment turnover to evaluate the performance during the period for the given companies is known as ratio analysis.

Requirement 3:

To explain:

To enumerate the reasons for better performance based on the information provided for fiscal year 2017 for Apple and Google company.

Answer 6

Chapter 9, Problem 2AA

To determine

Concept introduction:

Profit Margin:

The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales.

Requirement 1:

To compute profit margin percentage for Apple and Google company respectively.

Answer 7

Chapter 9, Problem 2AA

To determine

Concept introduction:

Profit Margin:

The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales.

Requirement 1:

To compute profit margin percentage for Apple and Google company respectively.

Answer 8

To determine

Concept introduction:

Investment Turnover:

The investment turnover for a company is calculated as the ratio of net sales to average investments during the period. The average investments calculated as the sum average of opening and closing balance of invested assets in the company respectively.

Requirement 2:

To compute investment turnover ratio for Apple and Google company respectively.

Answer 9

To determine

Concept introduction:

Investment Turnover:

The investment turnover for a company is calculated as the ratio of net sales to average investments during the period. The average investments calculated as the sum average of opening and closing balance of invested assets in the company respectively.

Requirement 2:

To compute investment turnover ratio for Apple and Google company respectively.

Answer 10

To determine

Concept introduction:

Ratio Analysis:

The comparison of ratios such as profit margin and investment turnover to evaluate the performance during the period for the given companies is known as ratio analysis.

Requirement 3:

To explain:

To enumerate the reasons for better performance based on the information provided for fiscal year 2017 for Apple and Google company.

Answer 11

To determine

Concept introduction:

Ratio Analysis:

The comparison of ratios such as profit margin and investment turnover to evaluate the performance during the period for the given companies is known as ratio analysis.

Requirement 3:

To explain:

To enumerate the reasons for better performance based on the information provided for fiscal year 2017 for Apple and Google company.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. 9 - Prob. 1MCQ Ch. 9 - Prob. 2MCQ Ch. 9 - Prob. 3MCQ Ch. 9 - Prob. 4MCQ Ch. 9 - 5. Using the data in question 4, Department X’s...Ch. 9 - Prob. 1DQ Ch. 9 - Prob. 2DQ Ch. 9 - Prob. 3DQ Ch. 9 - Prob. 4DQ Ch. 9 - Prob. 5DQ

Profit Margin: The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales. Requirement 1: To compute profit margin percentage for Apple and Google company respectively.

Solution Summary: The author explains that the profit margin for a company is calculated as the percentage of net income to sales.

Videos

Concept introduction:

Profit Margin:

The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales.

Requirement 1:

To compute profit margin percentage for Apple and Google company respectively.

Want to see the full answer?

Chapter 9 Solutions

Profit Margin: The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales. Requirement 1: To compute profit margin percentage for Apple and Google company respectively.

Solution Summary: The author explains that the profit margin for a company is calculated as the percentage of net income to sales.

Videos

Concept introduction: Profit Margin: The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales. Requirement 1: To compute profit margin percentage for Apple and Google company respectively.

Want to see the full answer?

Chapter 9 Solutions

Concept introduction:

Profit Margin:

The profit margin for a company is calculated as the percentage of net income to sales. Thus, it is a ratio to compute profitability against net sales.

Requirement 1:

To compute profit margin percentage for Apple and Google company respectively.