Return on Assets:
The return on assets is the return earned on the amount invested in assets. The return on assets is also known as the return on investment. In getting income individual or company will invest money; the ultimate aim is to earn a good return on the amount invested.
Net Income:
Total earning of the company is called net income of the company. When the total expense deducted from the total revenue than the resultant is net income or ne loss.Net profit of the company is also called net profit. The investor can take a decision on the basis of net income of the company. If net income is more the investor attract to the company.
1.
To compute: Return on assets of C and P Company.
2.
To compare: The performance of companies on the basis of sales.
3.
To compare: The performance of companies on the basis of net income from its asset invested.
4.
To analyze: The Company for investment purpose.
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FINANCIAL ACCT.FUNDAMENTALS <CUSTOM LL>
- IFRS Activity 1 Unilever Group is a global company that markets a wide variety of products, including Lever® soap, Breyer’s® ice cream, and Hellman’s® mayonnaise. A recent income statement and statement of comprehensive income for the Dutch company, Unilever Group, follow: What do you think is meant by “turnover”? How does Unilever’s income statement presentation differ significantly from that of Mornin’ Joe? How is the total for net finance costs presented differently from what typically would be found under U.S. GAAP?arrow_forwardAT&T and Verizon produce and market telecommunications products and are competitors. Key financial figures for these businesses for a recent year follow.Compute return on assets for (a) AT&T and (b) Verizon.arrow_forwardCoca-Cola and PepsiCo both produce and market beverages that are direct competitors. Key financial figures for these businesses for a recent year follow. Which company is more successful in returning net income from its assets invested?arrow_forward
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