Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158809
Author: Wild, John
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter 13, Problem 2FSA
Summary Introduction
Concept Introduction:
Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.
Requirement-1:
To Calculate:
Common size percents of above data.
Summary Introduction
Concept Introduction:
Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.
Requirement-2:
To Comment:
Dividend payment reduces or increases the percentage of retained earnings on total assets.
Summary Introduction
Concept Introduction:
Financial ratios: Ratio helps investor and the company to analyze the growth of the business. It helps to take decisions to management of business and helps investor in taking the decision of investment. Financial ratio also helps to compare the company with previous data and from other companies.
Requirement-3:
To Comment:
Which company has higher gross margin ratio.
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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
%
%
%
%
%
%
%
Some recent financial statements for Smolira Golf, Incorporated, follow.
Assets
Current assets
Cash
Accounts receivable
Inventory
Total
Fixed assets
Net plant and equipment
Total assets
Sales
Cost of goods sold
Depreciation
EBIT
Interest paid
Taxable income
Taxes
2021
SMOLIRA GOLF, INCORPORATED
2022 Income Statement
Net income
Dividends
Retained earnings
$ 6,358
9,248
14,580
$ 30,186
$ 90,361
$ 120,547
Balance Sheets as
2022
$ 16,000
26,459
SMOLIRA GOLF, INCORPORATED
of December 31, 2021 and 2022
Liabilities and Owners' Equity
Current liabilities
Accounts payable
Notes payable
Other
$ 7,866
11,445
29,641
$ 48,952
$ 107,206
$ 156,158
287,318
220, 396
10,913
$ 56,009
2,264
$ 53,745
11, 286
$ 42,459
Total
Long-term debt
Owners' equity
Common stock and paid-in surplus
Accumulated retained earnings
Total
Total liabilities and owners' equity
2021
$ 4,880
3,959
198
$ 9,037
$ 32,100
$ 40,000
39,410
$ 79,410
$ 120,547
2022
$ 5,381
4,479
429
$ 10,289
$ 40,000
$ 40,000
65,869
$ 105,869
$ 156, 158
Chapter 13 Solutions
Financial Accounting: Information for Decisions
Ch. 13 - Explain the difference between financial reporting...Ch. 13 - Prob. 2DQCh. 13 - Prob. 3DQCh. 13 - Prob. 4DQCh. 13 - Prob. 5DQCh. 13 - Prob. 6DQCh. 13 - Prob. 7DQCh. 13 - Prob. 8DQCh. 13 - Prob. 9DQCh. 13 - Prob. 10DQ
Ch. 13 - Prob. 11DQCh. 13 - Prob. 12DQCh. 13 - Prob. 13DQCh. 13 - Prob. 14DQCh. 13 - Prob. 15DQCh. 13 - Prob. 16DQCh. 13 - Prob. 17DQCh. 13 - Prob. 1QSCh. 13 - Prob. 2QSCh. 13 - Prob. 3QSCh. 13 - Prob. 4QSCh. 13 - Prob. 5QSCh. 13 - Prob. 6QSCh. 13 - Prob. 7QSCh. 13 - Prob. 8QSCh. 13 - Which of the following gains or losses would...Ch. 13 - Prob. 1ECh. 13 - Prob. 2ECh. 13 - Prob. 3ECh. 13 - Prob. 4ECh. 13 - Prob. 5ECh. 13 - Prob. 6ECh. 13 - Prob. 7ECh. 13 - Prob. 10ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Prob. 14ECh. 13 - Prob. 15ECh. 13 - Prob. 16ECh. 13 - Prob. 1PSACh. 13 - Prob. 2PSACh. 13 - Prob. 3PSACh. 13 - Prob. 5PSACh. 13 - Prob. 6PSACh. 13 - Selected comparative financial statements of...Ch. 13 - Prob. 2PSBCh. 13 - Prob. 3PSBCh. 13 - Prob. 5PSBCh. 13 - Prob. 6PSBCh. 13 - Prob. 13SPCh. 13 - Prob. 2FSACh. 13 - Prob. 3FSACh. 13 - Prob. 1BTNCh. 13 - Prob. 5BTN
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