FINANCIAL AND MANAGERIAL ACCOUNTING
13th Edition
ISBN: 9781337816045
Author: WARREN
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Textbook Question
Chapter 1, Problem 1.1EX
Types of businesses
The following is a list of well-known companies:
- 1. Alcoa Inc.
- 2. Boeing
- 3. Caterpillar
- 4. Citigroup Inc.
- 5. CVS
- 6. Dow Chemical Company
- 7. eBay Inc.
- 8. FedEx
- 9. Ford Motor Company
- 10. Gap Inc.
- 11. H&R Block
- 12. Hilton Hospitality, Inc.
- 13. Procter 8c Gamble
- 14. SunTrust
- 15. Walmart Stores, Inc.
A. Indicate whether each of these companies is primarily a service, merchandise, or manufacturing business. If you are unfamiliar with the company, use the Internet to locate the company’s home page or use the finance Web site of Yahoo (finance.yahoo.com).
B. For which of the preceding companies is the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Smart Eletro plc, a public listed company, is a major supplier of electrical components to the automotive industry. Company’s key accounting ratios are set out in the following table, together with industry averages:
Smart Electro plc.
Industry Averages
Return on capital employed
21.4%
16.1%
Gross profit margin
11.5%
13.0%
Net profit margin
9.8%
11.0%
Current ratio
1.6
1.4
Inventories turnover
12
6
Trade receivables collection period
61 days
65 days
Trade payables payment period
43 days
105 days
Gearing
68.4%
37.2%
Questions:
You are working in this company and the Finance Director asked you to write a report to the Board of Directors. Write a brief report to the board of directors of Smart Eletro plc. comparing the ratios for the company with the industry averages. Identify any areas in which you think they could make improvements.
Smart Eletro plc. has operations in…
Wendy’s International, Inc., and McDonald’s Corporation, two leading fast-food chains, are classified in SIC code 5812—Eating Places. Recent results for each company, along with industry averages, follow.
Wendy’s
McDonald’s
Industry Average
Return on assets
7.7
%
9.9
%
6.4
%
Return on common stockholders’equity
11.9
%
17.7
%
14.0
%
Net income as a percentage of sales
7.4
%
12.7
%
2.9
%
Debt-to-equity ratio
0.67
0.98
1.04
How do Wendy’s and McDonald’s compare to the industry averages? Based on your analysis, would you consider these two companies to be industry leaders? Why or why not?
The industry data reported here represent Dun and Bradstreet’s industry median. Dun and Bradstreet also reports industry norms for the upper quartile (top 25%) of companies in the industry. In the top quartile, return on assets was 15.1%, return on common stockholders’ equity was 34.7%,…
The companies in the S&P 500 are categorized by industry (e.g., Technology).
What are some of the major industries included on the map?
What are the three largest industries?
What does that say to you?
Chapter 1 Solutions
FINANCIAL AND MANAGERIAL ACCOUNTING
Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - A business had revenues of 679,000 and operating...Ch. 1 - Prob. 9DQCh. 1 - The financial statements are interrelated. What...
Ch. 1 - Prob. 1.1APECh. 1 - Prob. 1.1BPECh. 1 - Accounting equation Dream-It LLC is a motivational...Ch. 1 - Prob. 1.2BPECh. 1 - Transactions Arrowhead Delivery Service is owned...Ch. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Prob. 1.4APECh. 1 - Prob. 1.4BPECh. 1 - Prob. 1.5APECh. 1 - Prob. 1.5BPECh. 1 - Balance sheet Using the following data for Ousel...Ch. 1 - Prob. 1.6BPECh. 1 - Prob. 1.7APECh. 1 - Prob. 1.7BPECh. 1 - Prob. 1.8APECh. 1 - Prob. 1.8BPECh. 1 - Types of businesses The following is a list of...Ch. 1 - Prob. 1.2EXCh. 1 - Prob. 1.3EXCh. 1 - Prob. 1.4EXCh. 1 - Prob. 1.5EXCh. 1 - Prob. 1.6EXCh. 1 - Prob. 1.7EXCh. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Effect of transactions on stockholders equity...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Prob. 1.15EXCh. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items From the following list of...Ch. 1 - Prob. 1.18EXCh. 1 - Income statement Dairy Services was organized on...Ch. 1 - Missing amounts from balance sheet and income...Ch. 1 - Prob. 1.21EXCh. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Prob. 1.24EXCh. 1 - Prob. 1.25EXCh. 1 - Ratio of liabilities to stockholders' equity The...Ch. 1 - Prob. 1.27EXCh. 1 - Transactions On April 1 of the current year,...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Seth Feye established...Ch. 1 - Prob. 1.4APRCh. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Prob. 1.6APRCh. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Prob. 1.2BPRCh. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Prob. 1.4BPRCh. 1 - Prob. 1.5BPRCh. 1 - Missing amounts from financial statements The...Ch. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Prob. 1.1CPCh. 1 - Prob. 1.2CPCh. 1 - Prob. 1.3CPCh. 1 - Prob. 1.6CP
Additional Business Textbook Solutions
Find more solutions based on key concepts
Bank loan; accrued interest LO132 On October 1, Eder Fabrication borrowed 60 million and issued a nine-month, ...
INTERMEDIATE ACCOUNTING
Adjusting Journal Entries; Adjusted Trial Balance. Magic Cleaning Services (MCS) has a fiscal year-end of Decem...
Intermediate Accounting (2nd Edition)
(a) Standard costs are the expected total cost of completing a job. Is this correct? Explain, (b) A standard im...
Managerial Accounting: Tools for Business Decision Making
18. What is the calculation for return on assets (ROA)? Explain what ROA measures.
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Analysis of inventory errors A2 Hallam Company’s financial statements show the following. The company recently ...
FINANCIAL ACCT.FUND.(LOOSELEAF)
Place the letter of the appropriate accounting cost in Column 2 in the blank next to each decision category in ...
Fundamentals Of Cost Accounting (6th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Selected financial data for these two close competitors in the home building industry are provided below: ($ in millions) Company A Company B Total assets $40,930 $33,000 Total liabilities 21,500 13,990 Total stockholders' equity 19,430 19,010 Sales $66,174 $47,240 Interest expense 700 350 Tax expense 1,390 1,070 Net income 2,610 1,790 1-a. Calculate the debt to equity ratio for Company A and Company B. (Round your answers to 2 decimal places.) Debt to Equity Ratio Company A Company B 1-b. Which company has the higher ratio? Company A Company B 2-a. Calculate the times interest earned ratio for Company A and Company B. (Round your answers to 1 decimal place.) Time Interest Earned Ratio Company A times Company B times 2-b. Which company is better able to meet interest payments as they become due? Company A Company Barrow_forwardThe Dow Jones Industrial Average (DJIA) is often cited as a key metric for business activity. The average is a mathematical formula that uses the stock prices of thirty companies traded on the New York Stock Exchange (NYSE) and the National Association of Securities Dealers Automated Quotation (NASDAQ) system. A. Identify several of the companies that are included in the DJIA. B. Explain why this metric might be commonly used to measure business activity. C. Research the history of the DJIA and note some interesting facts. When did the Dow begin? What was the first value? What was the lowest value? The following is an example of a website that may be helpful: http://www.dow-jones-djia.com/history-of-dow-jones-industrial-average-index/. D. What is the current value of the DJIA? What factors might contribute to the difference between early and current values of the DJIA?arrow_forwardGive some examples of the basic assets and liabilities of a company like Walmart.arrow_forward
- Answer the questions based on P/E ratios per company given. Industry: Apparel Industry average P/E: AMC Entertainment Holdings, Inc. (NYSE:AMC) P/E: -4.1 Big Screen Entertainment Group, Inc. (OTCPK:BSEG) P/E: 19.92 Valiant Eagle Inc. (OTCPK:PSRU) OTCPK:PSRU P/E: 0.02 Cinemark Holdings, Inc. (NYSE:CNK) P/E: 21.41 Electronic Arts Inc. (NasdaqGS:EA) P/E: 57.12 The Movie Studio, Inc. (OTCPK:MVES) P/E: N/A at a loss The Walt Disney Company (NYSE:DIS) P/E: 88.15 Live Nation Entertainment, Inc. (NYSE:LYV) P/E: -14.42 Lions Gate Entertainment Corp. (NYSE:LGF.A) P/E: 37.34 Madison Square Garden Entertainment Corp. (NYSE:MSGE) P/E: -4.928 Which firms are investors most excited about, and which firms are investors least excited about? Are there any significant outliers present? Note the highest and lowest P/E ratios. Do these numbers surprise you? Do the P/E ratios make sense; do you see any that seem out of linearrow_forwardA corporation is considering the acquisition of one of its parts suppliers and has been reviewing the pertinent financial statements. Specific data, shown below, has been selected from these statements for review and comparison with industry averages. B R W Industry Total sales (millions) $4.27 $3.91 $4.86 $4.30 Net profit margin 9.55% 9.85% 10.05% 9.65% Current ratio 1.32 2.02 1.96 1.95 Return on assets 11.0% 12.6% 11.4% 12.4% Debt/equity ratio 62.5% 44.6% 49.6% 48.3% Financial leverage 1.40 1.02 1.86 1.33 The objective for this acquisition is assuring a steady source of supply from a stable company. Based on the information above, select the strategy that would fulfill the objective. A. The corporation should not acquire any of these firms as none of them represents a good risk. B. Acquire B as both the debt/equity ratio and degree of financial…arrow_forwardces Bigco Corporation is one of the nation's leading distributors of food and related products to restaurants, universities, hotels, and other customers. A simplified version of its recent income statement contained the following items (in millions). Cost of sales Income taxes Interest expense Net earnings Sales Earnings before income taxes. Selling, general, and administration expense Other revenues Total expenses (excluding income taxes) Total revenues $ 11,671 389 34 1,147 16,270 1,536 3,463 434 BIGCO CORPORATION Income Statement 15,168 16,704 Prepare an income statement for the year ended June 30, current year. (Hint: First order the items as they would appear on the income statement and then confirm the values of the subtotals and totals.) Note: Enter your answers in millions rather than in dollars (for example, 5,000 million should be entered as 5,000 rather than 5,000,000).arrow_forward
- AGF Foods Company is a large, primarily domestic, consumer foods company involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troy's The Almanac of Business and Industrial Financial Ratios and Dun and Bradstreet's Industry Norms and Key Business Ratios. Following are the 2024 and 2023 comparative income statements and balance sheets for AGF. The market price of AGF's common stock is $47 at the end of 2024. (The financial data we use are from actual financial statements of a well-known corporation, but the company name used in our illustration is fictitious and the numbers and dates have been modified slightly to disguise the company's identity.) Profitability is the key to a company's long-run survival. Profitability measures focus on a company's ability to provide an adequate return relative to resources devoted to company operations. AGF FOODS COMPANY Years Ended December 31, 2024 and 2023 2024 Comparative Income…arrow_forwardAGF Foods Company is a large, primarily domestic, consumer foods company Involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troy's The Almanac of Business and Industrial Financial Ratios and Dun and Bradstreet's Industry Norms and Key Business Ratios. Following are the 2024 and 2023 comparative Income statements and balance sheets for AGF. The market price of AGF's common stock is $47 at the end of 2024. (The financial data we use are from actual financial statements of a well-known corporation, but the company name used in our illustration is fictitious and the numbers and dates have been modified slightly to disguise the company's Identity:) Profitability is the key to a company's long-run survival. Profitability measures focus on a company's ability to provide an adequate return relative to resources devoted to company operations. ($ in millions) AGF FOODS COMPANY Years Ended December 31, 2024 and 2023 2024…arrow_forwardNobility Homes, Incorporated, is a small maker of manufactured homes sold throughout the state of Florida. The following are selected financial data for the company for the period 2012-2016. Year 2012 2013 2014 2015 2016 2012 % 2013 0.4 100.0 0.44 1.09 17.4 Profit margin (8) Retention ratio (8) Asset turnover (X) Financial leverage (X) Growth rate in sales (t) Source: Data from Nobility Homes 2012 to 2016 annual reports a. Calculate Nobility Homes' annual sustainable growth rate for the years 2012 through 2016. Note: Round your answers to 1 decimal place. Sustainable Growth Rate % % % 6.7 % 2014 5.0 100.0 0.49 1.13 16.9 2015 5.4 100.0 0.54 1.16 14.4 9.4 100.0 0.59 2016 1.21 30.9 17.4 100.0 0.64 1.29 22.4arrow_forward
- East Point Retail, Inc., sells apparel through company-owned retail stores. Financial information for East Point follows (in thousands): Net income Interest expense Fiscal Year 3 Fiscal Year 2 Fiscal Year 1 $2,965,307 $2,820,657 $2,490,455 938,794 1,305,728 1,279,872 Assume the apparel industry average return on total assets is 8.0%, and the average return on stockholders' equity is 15.0% for the year ended April 2, Year 3. a. Determine the return on total assets for East Point for fiscal Years 2 and 3. Round your answers to one decimal place. Fiscal Year 3 Total assets (at end of fiscal year) Total stockholders' equity (at end of fiscal year) Fiscal Year 2 Fiscal Year 3 Fiscal Year 2 $83,200 12,400 $161,600 3,300 Fiscal Year 3 Fiscal Year 2 b. Determine the return on stockholders' equity for East Point for fiscal Years 2 and 3. Round your answers to one decimal place. % olders! % % % the raarrow_forwardConsider the following data,, for the airline industry for April 2019 (EV = enterprise value, Book = equity book value). Suppose Hawaiian Airlines (HA) has 50 million shares outstanding. Estimate Hawaiian Airlines' share value using each of the five valuation multiples, based on the median valuation multiple of the other seven airlines shown (excluding Hawaiian Airlines). Calculate Hawaiian Airlines' share values using each of the five valuation multiples below: (Round the median to two decimal places. Round the share price to the nearest cent. Round the EV and market cap to the nearest integer.) Hawaiian Airlines Median Implied EV $ Implied market cap. $ Implied share price $ EV/Sales 0.60 $ $ $ EV/EBITDA 3.4 $ EV/EBIT 4.8 $ $ (---) P/E 6.1 $ $ P/Book 1.4arrow_forwardSharp Uniforms designs and manufactures uniforms for corporations throughout the United States and Canada. The company's stock is traded on the NASDAQ. Selected information from the company's financial statements follows. (assume that all sales were credit sales) SHARP(in millions) Current Year Prior Year Select Income Statement Information Net revenue $ 4,556 $ 4,320 Cost of goods sold 2,643 2,533 Selling, general, and administrative expenses 1,305 1,226 Interest expense 76 74 Income tax expense 235 190 Net income 378 321 Select Statement of Cash Flows Information Cash paid for interest 67 71 Cash flows from operating activities 618 559 Select Balance Sheet Information Cash and equivalents 517 360 Marketable securities — 8 Accounts receivable 512 511 Inventories 255 246 Prepaid expense and other current assets 30 27 Accounts payable 160…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningFinancial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Financial Accounting: The Impact on Decision Make...
Accounting
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Topic 6 - Financial statement analysis; Author: drdavebond;https://www.youtube.com/watch?v=uUnP5qkbQ20;License: Standard Youtube License