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Concept introduction:
This ratio shows relationship between cash flow from operating activities and average total assets of a firm. This ratio tells that how much cash flow from operations is generated in compare to average total assets.
Requirement 1:
Cash flow on total assets for Samsung.
Concept introduction:
Cash flow on total assets ratio:
This ratio shows relationship between cash flow from operating activities and average total assets of a firm. This ratio tells that how much cash flow from operations is generated in compare to average total assets.
Requirement 2:
To explain:
Is the change in Samsung’s cash flow on total assets ratio favourable or unfavourable?
Concept introduction:
Cash flow on total assets ratio:
This ratio shows relationship between cash flow from operating activities and average total assets of a firm. This ratio tells that how much cash flow from operations is generated in compare to average total assets.
Requirement 3:
To explain:
Is Samsung’s cash flow on total assets ratio better or worse than Apple’s and Google’s?
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Chapter 12 Solutions
Managerial Accounting
- Compute the recent two years’ cash flow on total assets ratios for apple and googlearrow_forwardCase Study Questions What was the total postpaid revenue in 2017? What was the total net profit in 2017? Identify examples of strategies adopted by MAXIS in that year. How were the above strategies related to their Customer Relationship Management (CRM) and future sale?arrow_forwardBased on the quarter ended March 2023 financial results on investor.siriusxm.com, as per attached image and discuss whether Sirius XM's recent financial reports indicate that its business model is working. (i) Are its subscription fees increasing or declining? (ii) Are its revenue stream advertising and equipment sales growing or declining? (iii)Does its cost structure allow for acceptable profit marginsarrow_forward
- Luxury Goods Group, an Italian company that sells sunglasses, reported net sales of €6.3 billion in 2018 and €7.3 billion in 2017. Gross profit decreased from €4.2 billion in 2017 to €3.5 billion in 2018. 1. Calculate the gross profit percentage for each year. (Round your answers to 1 decimal place.) 2. The change in gross profit was caused by: Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the gross profit percentage for each year. (Round your answers to 1 decimal place.) Gross Profit 2018 2017 %arrow_forwardPlease interpret the numbers and compare the number, no required to explain the theory. Also answer if the business is a going concern? CKM RATIOS: 2016 2017 2018 2019 2020 2021 Current ratio 0.66 0.58 0.96 0.92 1.06 0.83 Quick ratio 0.43 0.37 0.58 0.53 0.49 0.57 Operating cash flow ratio 0.10 0.01 0.01 0.00 0.02 0.07 PWC RATIOS: 2016 $000 2017 $000 2018 $000 2019 $000 2020 $000 2021 $000 Current ratio 2.37 2.23 2.07 1.89 2.74 2.16 Quick ratio 0.93 0.95 0.81 0.80 1.36 1.01 Operating cash flow ratio 1.02 0.72 0.96 0.47 0.32 0.52arrow_forwardRequirement 1. For 2017 and 2018, compute the five ration that measure how a business is investing its money and whether it is using its assets officiently Round sach sabio to ho decimal places Assume all sales are on credt.arrow_forward
- 1- Calculate the financial ratios of Spinneys in 2022 and 2021. 2- Analyze the change between the years 2022 and 2021 in terms of financial ratios. Which financial ratios would you check to evaluate the performance of inventory management and cash management? Which year is better in terms of inventory management and cash management?arrow_forwardKey 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. % $ 47,971 232,792arrow_forwardThe following information was taken from the Netflix financial statements. For Netflix, sales is the product of the number of subscribers and the price charged for each subscription. What observations can you make about the previous three years of Netflix’s sales? Given this data, provide any predictions you can make about the future financial performance of Netflix. What nonfinancial factors influenced that prediction?arrow_forward
- Calculate the profit margin, basic earning power (BEP), return on assets (ROA), and return on equity (ROE). How has the company’s profitability changed during the last year? A computer manufacturer has financial statements as follows: Income Statements for Year Ending December 31 (Thousands of Dollars) 2019 2018 Sales $945,000 $900,000 Expenses excluding depreciation and amortization 812,700 774,000 EBITDA $132,300 $126,000 Depreciation and amortization 33,100 31,500 EBIT $99,200 $94,500 Interest Expense 10,470 8,600 EBT $88,730 $85,900 Taxes (25%) 22,183 21,475 Net income $66,547 $64,425 Common dividends $56,609 $54,115 Addition to retained earnings $9,938 $10,310 Balance Sheets for Year Ending December 31 (Thousands of Dollars) Assets 2019 2018 Cash and…arrow_forwardAnalyzing 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 $210,344 49,730 53,578 48,351 41,118 48,055…arrow_forwardCommon-size financial statements. Prepare common-size income statements for Walmart and Starbucks using the January 2015 and September 2014 information in the popup window: Which company is doing a better job of getting sales dollars to net income? Where is the one company having an advantage over the other company in turning revenue into net income? Complete the table below. (Round to two decimal places. Net income to three decimal places.) Abbreviated Income Statements ($ in Millions) Company Account Walmart, Inc. 1/31/2015 Starbucks 9/30/2014 Sales 491,920 % 16,801 % Cost of goods sold $ -370,530 % 7,272 % Selling, general, and administrative expenses $ -94,693 % $ -11,569 % EBIT $ 26,697 % $ -2,040 % Interest expense S -2,343 % $ -26 % Taxes $ -9,011 % 764 % Net income $ 15,343 % -1,302 % Which company is doing a better job of getting sales dollars to net income? (Select from the drop-down menus.) Walmart and Starbucks bring and cents of sales revenue to the bottom line,…arrow_forward
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
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