INTERNATIONAL ACG.-PHYSICAL ACCESS CODE
INTERNATIONAL ACG.-PHYSICAL ACCESS CODE
5th Edition
ISBN: 9781264161713
Author: Doupnik
Publisher: MCG
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Chapter 1, Problem 5EP
To determine

Determine the larger multinational corporation from the two corporations by calculating an index of multi-nationality based upon the geographical distribution of sales revenue and non-current assets.

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Yuehua Telecom Inc. and Guangxin Technology Ltd. are two competing ICT corporations based in Shenzhen Special Economic Zone, China. Both companies’ stocks are traded at Shenzhen Stock Exchange. The comparative financial statements of Yuehua and Guangxin for the last four years (2016 – 2019) are shown in the Attachments 1 and 2:   Instructions: (B) Evaluate each company’s trends for sales, gross profit, and net income as disclosed on the comparative income statement.
Taft Corporation operates primarily in the United States. However, a few years ago it opened a plant in Spain to produce merchandise to sell there. This foreign operation has been so successful that during the past 24 months the company started a manufacturing plant in Italy and another in Greece. Financial information for each of these facilities follows:The company’s domestic (U.S.) operations reported the following information for the current year:Taft has adopted the following criteria for determining the materiality of an individual foreign coun­try: (1) Sales to unaffiliated customers within a country are 10 percent or more of consolidated sales or (2) long-lived assets within a country are 10 percent or more of consolidated long-lived assets.Apply Taft’s materiality tests to identify the countries to report separately with respect to (a) revenues and (b) long-lived assets.
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