MANAGERIAL ACCOUNTING FUND. W/CONNECT
5th Edition
ISBN: 9781259688713
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 12, Problem 10BTN
To determine
Concept introduction:
Cash Flow statement:
The Cash flow statement shows the movement of cash during a particular period. The
- Cash flows from operating activities
- Cash Flows from investing activities
- Cash flows from financing activities
(Note: Cash flows from operating activities can be prepared using direct or indirect method)
Requirement 1:
To calculate:
The Cash flow to total asset ratio for Samsung for the recent two years.
To determine
Concept introduction:
Cash Flow statement:
The Cash flow statement shows the movement of cash during a particular period. The Cash flows are categorized into three categories as follows:
- Cash flows from operating activities
- Cash Flows from investing activities
- Cash flows from financing activities
(Note: Cash flows from operating activities can be prepared using direct or indirect method)
Requirement 2:
To discuss:
The performance of Samsung using Cash flow to total asset ratio for Samsung for the recent two years.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Analyzing Financial Data: Trend Analysis.
Presented below is selected financial data for Apple Inc., for the five-year period 2015 to 2019.
(in millions)
Net sales
Net income
Dividends (per share)
Total assets
Noncurrent liabilities
Total shareholders' equity
Cash, cash equivalents, and marketable securities
Required
1. Comment on the relationship between the growth in net sales and the growth in net income
over the period 2015 to 2019 and what that implies regarding cost expenses.
Note: Round the percentages to two decimal points (i.e. show 14.445% as 14.45%).
From 2015 to 2019 sales grew by: 0
%
From 2015 to 2019 net income grew by: 0 %
Was Apple able to achieve greater efficiencies with their growth?
Financial leverage
2. Comment on the company's financial leverage over this period.
Note: Round the amounts to two decimal points (i.e. show 14.445 as 14.45).
2019
2018
2015
https:
2019 2018 2017 2016 2015
$234,157 $239,036 $206,311 $194,075 $210,344
49,730 53,578 48,351 41,118 48,055…
Given the income statement below, Mega Trade Inc. wants to find the resulting net income for the year 2018 (in million). What is the right amount?
Income Statement ($ Million)
Year End
2015
2016
2017
2018
Sales
1,234.90
1,251.70
1,300.40
1,334.40
Cost of Sales
-679.1
-659
-681.3
-667
Selling & Administration
-339.7
-348.6
-351.2
-373.3
Depreciation
-47.5
-52
-55.9
-75.2
Other Income/Expenses
11.8
7.6
7
8.2
Interest Income
1.3
1.4
1.7
2
Interest Expense
-16.2
-15.1
-20.5
-23.7
Income Taxes
-56.8
-64.2
-67.5
-72.6
Dividends
-38.3
-38.7
-39.8
-40.1
CHOICES:
A. 108.7B. 132.7C. No choice givenD. 132.8E. 121.8
Working with the Takeaways throughout this chapter we have considered the financial statements of Apple Inc. and have undertaken select financial analysis using the Takeaways. Utilize
these same tools to analyze the financial data of
Logitech International, a manufacturer of computer peripherals. The following information was reported by Logitech in the company’s financial statements as of year-end March 31, 2017 and 2016.1. Calculate the return on sales ratio for each year and comment on Logitech’s profitability.2. Calculate the current ratio for each year and comment on Logitech’s liquidity.3. Calculate the debt-to-total-assets ratio for each year and comment on Logitech’s solvency. 4. Calculate the free cash flow for each year and comment on what this means for Logitech. 5. Apple’s fiscal year-end occurs near the end of September, whereas Logitech uses a March year-end. How might this affect a comparison of the financial results of the two companies?
Chapter 12 Solutions
MANAGERIAL ACCOUNTING FUND. W/CONNECT
Ch. 12 - Prob. 1MCQCh. 12 - Prob. 2MCQCh. 12 - Prob. 3MCQCh. 12 - Prob. 4MCQCh. 12 - Prob. 5MCQCh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQ
Ch. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Prob. 12DQCh. 12 - Prob. 13DQCh. 12 - Prob. 14DQCh. 12 - Prob. 15DQCh. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - The following information is necessary to answer...Ch. 12 - Refer to the balance sheet data above from Anders...Ch. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - Prob. 9QSCh. 12 - Prob. 10QSCh. 12 - Use the following balance sheet and income...Ch. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Prob. 14QSCh. 12 - Prob. 15QSCh. 12 - Prob. 16QSCh. 12 - Prob. 17QSCh. 12 - Prob. 18QSCh. 12 - Prob. 19QSCh. 12 - Prob. 20QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - The following financial statements and additional...Ch. 12 - Prob. 12ECh. 12 - Complete the following spreadsheet in preparation...Ch. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - The following summarized Cash T-account reflects...Ch. 12 - Prob. 1PSACh. 12 - Refer to the information in problem 12-1A....Ch. 12 - Forten Company, a merchandiser, recently completed...Ch. 12 - Prob. 4PSACh. 12 - Refer to Forten Companys financial statements and...Ch. 12 - Golden Corp., a merchandiser, recently completed...Ch. 12 - Prob. 7PSACh. 12 - Prob. 8PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 7PSBCh. 12 - Prob. 8PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1GLPCh. 12 - Prob. 3GLPCh. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 4BTNCh. 12 - Prob. 5BTNCh. 12 - Prob. 6BTNCh. 12 - Prob. 7BTNCh. 12 - Prob. 8BTNCh. 12 - Prob. 10BTN
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
- Please find below Financial Statement extracts of Nestle from year 2017 and 2018. Based on this information please answer following question from a perspective of Financial Analyst (justify your answers with data as well the reason for choosing your ratios for your analysis) .The company’s total assets at year-end 2016 were CHF 131,900 million. What reasonable conclusions an analyst might make about the companies efficiency, Companies solvency, Liquidity and Profitability? In millions of CHF Notes 2018 2017 * Sales 3 91,439 89,590 Cost of goods sold (46,070) (45,571) Trading operating profit 3 13,789 13,277 Operating profit 13,752 10,156 Profit before taxes, associates and joint ventures 12,991 9,460 Taxes 13 (3,439) (2,773) Profit for the year 10,468 7,511 Notes 2018 2017 * Assets Current assets Cash and cash equivalents 12/16…arrow_forwardUse the following Income Statement and Balance Sheet Information for 2018 to answer the question below. This is a Retail Company. All numbers are in Millions. Income Statement Total Sales213.8 Cost of Sales151.3 Gross Profit213.8-151.3 Selling and Administrative Expenses22.3 Research and Development 7.7 Depreciation and Amortization4.5 Other Income2.4 EBIT213.8-151.3-22.3-7.7-4.5+2.4 Interest Expense5.8 Pretax Income213.8-151.3-22.3-7.7-4.5+2.4-5.8 Taxes( 213.8-151.3-22.3-7.7-4.5+2.4-5.8 )*0.30 Net Income( 213.8-151.3-22.3-7.7-4.5+2.4-5.8 )*0.70 Balance Sheet Assets Liabilities Cash65.8Accounts Payable43.3Accounts Receivable54.4Notes Payable/Short term debt1.6Inventories4.4 Total Current Assets65.8+54.4+4.4Total Current Liabilities43.3+1.6 Net property, plant and equipment103.4Long-term debt80.0Total long-term assets103.4Total long-term debt liabilities80.0 Total Liabilities43.3+1.6+80.0 Stockholders' Equity (Total Equity)65.8+ 54.4+4.4+103.4-43.3-1.6-80.0Total…arrow_forwardGiven the income statement below, Mega Trade Inc. wants to find the resulting net income for the year 2016 (in million). What is the right amount? Income Statement ($ Million) YEAR END YEAR END YEAR END YEAR END 2015 2016 2017 2018 Sales 1,234.90 1,251.70 1,300.40 1,334.40 Cost Sales -679.1 -659 -681.3 -667 Gross Operating Income Selling & Administration -339.7 -348.6 -351.2 -373.3 Depreciation -47.5 -52 -55.9 -75.2 Other Income/Expenses 11.8 7.6 7 8.2 Earnings Before Interest and Taxes Interest Income 1.3 1.4 1.7 2 Interest Expense -16.2 -15.1 -20.5 -23.7 Pre Tax Income Income Taxes -56.8 -64.2 -67.5 -72.6 Net Income Dividends -38.3 -38.7 -39.8 -40.1arrow_forward
- In December 2015, Apple had cash of $37.97 billion, current assets of $75.81 billion, and current liabilities of $75.89 billion. It also had inventories of $2.45 billion. a. What was Apple's current ratio? b. What was Apple's quick ratio? c. In January 2016, Hewlett-Packard had a quick ratio of 0.66 and a current ratio of 0.90. What can you say about the asset liquidity of Apple relative to Hewlett-Packard? a. What was Apple's current ratio? Apple's current ratio was (Round to two decimal places.) b. What was Apple's quick ratio? Apple's quick ratio was (Round to two decimal places.) c. In January 2016, Hewlett-Packard had a quick ratio of 0.66 and a current ratio of 0.90. What can you say about the asset liquidity of Apple relative to Hewlett-Packard? (Select the best choice below.) A. Apple's higher current and quick ratios demonstrate that it has much higher asset liquidity than does Hewlett-Packard. This means that in a pinch, Apple has more liquidity to draw on than does…arrow_forwardIn December 2015, Apple had cash of $38.36 billion, current assets of $76.45 billion, and current liabilities of $76.32 billion. It also had inventories of $2.45 billion. a. What was Apple's current ratio? b. What was Apple's quick ratio? c. In January 2016, Hewlett-Packard had a quick ratio of 0.66 and a current ratio of 0.90. What can you say about the asset liquidity of Apple relative to Hewlett-Packard? a. What was Apple's current ratio? Apple's current ratio was (Round to two decimal places.) b. What was Apple's quick ratio? Apple's quick ratio was (Round to two decimal places.) c. In January 2016, Hewlett-Packard had a quick ratio of 0.66 and a current ratio of 0.90. What can you say about the asset liquidity of Apple relative to Hewlett-Packard? (Select the best choice below.) A. Apple's higher current and quick ratios demonstrate that it has much higher asset liquidity than does Hewlett-Packard. This means that in a pinch, Apple has less liquidity to draw on than does…arrow_forwardThe following condensed information is reported by Beany Baby Collectibles. Income Statement Information Sales revenue Cost of goods sold Net income Balance Sheet Information Current assets Long-term assets Total assets Current liabilities Long-term liabilities Common stock Retained earnings Total liabilities and stockholders' equity Required: 1. Calculate the following profitability ratios for 2024: 2. Determine the amount of dividends paid to shareholders in 2024. 2024 $10,440,000 6,827,760 360,000 $1,200,000 1,500,000 2023 $1,600,000 $1,500,000 2,200,000 1,900,000 $3,800,000 $3,400,000 800,000 300,000 $3,800,000 $8,400,000 5,900,000 248,000 $900,000 1,500,000 800,000 200,000 $3,400,000arrow_forward
- You are provided with the Income Statement and the Balance Sheet of HTS software, Inc. for 2011. Required: (b) Analyze the current financial position for the company from a time series and cross section viewpoint. (c) Break your analysis into an evaluation of the firm’s liquidity, activity, debt, profitability and market ratios. Historical and Industry Average Ratios HTS Software , Inc. Ratio 2010 2011 Industry2011 Current Ratio 2.6 — 2.7 Quick Ratio 1.8 — 1.75 Inventory Turnover 4.5 — 4.7 Average Collection Period 40days — 42 days Total Asset Turnover 1.2 — 1 Debt Ratio 20% — 21% Times Interest Earned 9 — 8.9 Gross Profit Margin 43% — 44% Operating Profit Margin 30% — 32% Net Profit Margin 20% — 21% Return on total assets 12% — 13% Return on Equity Price/Earnings Ratio 15% 7.3 — — 16% 8 Balance SheetHTS Software, Inc.December 31,…arrow_forwardGiven the income statement below, Mega Trade Inc. wants to find the resulting net income for the year 2018 (in million). What is the right amount? Income Statement ($ Million) YEAR END YEAR END YEAR END YEAR END 2015 2016 2017 2018 Sales 1,234.90 1,251.70 1,300.40 1,334.40 Cost Sales -679.1 -659 -681.3 -667 Gross Operating Income Selling & Administration -339.7 -348.6 -351.2 -373.3 Depreciation -47.5 -52 -55.9 -75.2 Other Income/Expenses 11.8 7.6 7 8.2 Earnings Before Interest and Taxes Interest Income 1.3 1.4 1.7 2 Interest Expense -16.2 -15.1 -20.5 -23.7 Pre Tax Income Income Taxes -56.8 -64.2 -67.5 -72.6 Net Income Dividends -38.3 -38.7 -39.8 -40.1 Addition to Retained Earningsarrow_forwardQuestion 2. Below are the operating income on sales ratios for three international companies: Year Company A Company B Company C 2014 4 4 4 2015 5 6 7 2016 8 7 7 2017 5 8 8 2018 4 8 9 Required: Which company is more profitably over the years? Measure the stability of this ratio? Advise the investor on which company he should invest in?arrow_forward
- FINANCIAL RATIOS Required: a. Compute for the company's profitability and operating efficiency ratios in 2014. b. Compute for the financial health ratios of the company in 2014 and 2013. Very Berry Company Very Berry Company Statement of Comprehensive Income Statement of financial Position For the year ended December 31 For the year ended December 31 2014 2013 400,000 5,600,000 2014 2013 Cash 180,000 Short-term Investments 1,800,000 Sales 10,040,000 8,760,000 Accounts Receivable 1,480,000 1,060,000 Cost of Goods Sold 5,680,000 5,860,000 Inventory 1,380,000 1,640,000 4,360,000 1,160,000 Gross Profit 2,800,000 8,860,000 10,860,000 Other Current Assets 4,680,000 Operating Expenses Operating Income Interest Expense 1,680,000 Total Current Assets 5,040,000 1,20,000 28,000 3,200,000 Equipment 6,800,000 5,200,000 100,000 Total Assets 17,660,000 10,240,000 3,100,000 Accounts Payable Notes Payable - long term Owner, Capital Total Liabilities and Capital 2,620,000 2,120,000 Net Income 1,192,000…arrow_forwardAnalyze the financials for Wal-Mart and its competitor(s) in the online market in 2012 and 2016. What do you conclude from analyzing financial ratios about the companies strategies and Walmart's competitive advantage? Revenue Cost of goods sold Gross profit SG&A and other expenses Operating income Net income Total assets Total liabilities Total equity Total assets end Total assets beginning Total liabilities end Total liabilities beginning Total equity end Total equity beginning Cost of goods sold as % of sales Gross margin SG&A as % of sales Operating income margin Net profit margin Asset turnover ROA ROE Walmart 2012 in $ millions 443,854 335,127 108,727 85,265 23,462 15,699 186,931 113,021 73,910 193,406 180,455 117,241 108,800 76,165 71,655 75.5% 24.5% 19.2% 5.3% 3.5% 2.4 8.4% 21.2% Walmart 2016 in $ millions 478,614 360,984 117,630 97,041 20,589 14,694 201,536 116,762 84,774 199,581 203,490 115,970 117,553 83,611 85,937 75.4% 24.6% 20.3% 4.3% 3.1% 2.4 7.3% 17.3% Amazon 2012 in $…arrow_forwardCalculate the ratios of Woolworths Group (Australian retail company) for the year 2021: Ratios to calculate: Profitability (ROSF, ROCE, Gross margin, Operating profit margin, Cash flow to Sales*) Efficiency (Inventory turnover period, Average settlement period, Sales revenue to capital employed) Liquidity (Current ratio, Acid test (quick) ratio, Cash flow ratio*). Stability/Capital Structure (Gearing ratio, Interest cover ratio, Debt coverage ratio*) Investment/Market Performance (Earnings per share, Price earnings ratio, Operating cash flow per share*)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License