Concept introduction:
Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.
Return on assets: Return on Assets (ROA) is the earnings generated by the business/management on the investment or assets /invested into a business. It indicates the efficiency of the business/ management by calculating the percentage of return, the business/management gives on the investment made. The calculation is done by dividing a company’s annual earning by its total assets. The return on assets is also known as return on investment.
(1)To calculate: The amount of assets invested in Apple
(2)To calculate: Apple’s return on assets for the fiscal year 2015
(3)To find: The total expense for the year ended September 26, 2015
(4)To find: Whether the return on assets is satisfactory for the year 2015
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Chapter 1 Solutions
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