Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
7th Edition
ISBN: 9781260581256
Author: John Wild
Publisher: McGraw-Hill Education
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Chapter 12, Problem 2AA
To determine
It is that ratio through which can be known company position whether company is able to meet its obligation or not. It is the cash based ratio. Through this ratio quality of earning of the company can be known. A company is said to be have good quality of earning if the cash flow on total assets is exceed the return on total assets. It can be calculated by dividing the cash flow operation to
1.
Cash flow on total assets ratio.
2.
To determine
To identity: Purpose of cash flow on total assets ratio.
3.
To determine
To identify: Highest cash flow on total ratio.
4.
To determine
To identify: Whether the cash flow on total assets reflect the earnings quality.
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Key figures for Apple and Google follow.
$ millions
Operating cash flows
Total assets
Apple
Google
Current Year 1 Year Prior 2 Years Prior Current Year 1 Year Prior 2 Years Prior
$ 77,434
$ 36,036
365,725
$ 37,091
197,295
167,497
Apple
Google
Required:
1. Compute the recent two years' cash flow on total assets ratios for Apple and Google.
2. For the current year, which company has the better cash flow on total assets ratio?
3. For the current year, does cash flow on total assets outperform or underperform the industry (assumed) average of 15% for (a)
Apple and (b) Google?
Complete this question by entering your answers in the tabs below.
$ 64,225
375,319
Cash Flow On Total Assets Ratio
Current Year
Prior Year
%
%
$ 66,231
321,686
Required 1 Required 2
Required 3
Compute the recent two years' cash flow on total assets ratios for Apple and Google.
Note: Round final answers to 1 decimal place.
%
$ 47,971
232,792
Key financial figures for Apple’s two most recent fiscal years follow. $ millions Current Year Prior Year Liabilities + Equity . $375,319 $321,686 Net income . 48,351 45,687 Revenues 229,234 215,639 Required 1. What is the total amount of assets invested in Apple in the current year? 2. What is Apple’s return on assets for the current year? 3. How much are total expenses for Apple for the current year? 4. Is Apple’s current-year return on assets better or worse than competitors’ average of 10% return?
Key figures for Apple and Google follow.
$ millions
Cash and equivalents
Accounts receivable, net
Inventories
Retained earnings
Cost of sales
Revenues
Total assets
Apple
$ 48,844
22,926
4,106
45,898
161,782
260,174
338,516
Required:
1. Compute common-size percents for each company using the data given.
2. If Google paid a dividend, would retained earnings as a percent of total assets increase or decrease?
3. Which company has the better gross margin ratio on sales?
Required 1 Required 2 Required 3
Complete this question by entering your answers in the tabs below.
$ millions
Cash and equivalents
Accounts receivable, net
Inventories
Retained earnings
Cost of sales
Revenues
Total assets
Google
$ 18,498
25,326
999
152,122
71,896
161,857
275,909
Compute common-size percents for each company using the data given.
Note: Input all the values as positive numbers. Enter your answers in millions. Round your percentage answers to 1 decimal
place.
Apple
%
%
%
%
%
%
%
Google
%
%
%
%
%
%
%
Chapter 12 Solutions
Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
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 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - Prob. 9QSCh. 12 - Prob. 10QSCh. 12 - Prob. 11QSCh. 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. 21QSCh. 12 - Prob. 22QSCh. 12 - Prob. 23QSCh. 12 - Prob. 24QSCh. 12 - Prob. 25QSCh. 12 - Direct: Computing operating cash outflows P5 Refer...Ch. 12 - Prob. 27QSCh. 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 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Prob. 6PSACh. 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. 2GLPCh. 12 - Prob. 3GLPCh. 12 - Prob. 1AACh. 12 - Prob. 2AACh. 12 - Prob. 3AACh. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 4BTNCh. 12 - Prob. 5BTNCh. 12 - Prob. 6BTNCh. 12 - Prob. 7BTN
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