FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
15th Edition
ISBN: 9781265564483
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 14, Problem 9BTN
Samsung (w ww.Sanisung.com). Apple, and Google are competitors in the global marketplace. Selected results from these companies follow.
SamsungAppleGoogle
(W millions)(S millions)($ millions)
| Key Figures | CurrentYear | PriorYear | CurrentYear | PriorYear | CurrentYear | PriorYear |
| Total assets.............. | W214,075,018 | W181,071,570 | $207,000 | $176,064 | $110,920 | $93,798 |
| Total liabilities.............. | 64,059,008 | 59.591,364 | 83.451 | 57.854 | 23.611 | 22.083 |
| Total equity.............. | 150.016,010 | 121.480,206 | 123.549 | 118.210 | 87.309 | 71.715 |
| Debt-to-equity ratio ......... | f | ! | 0.68 | 0.49 | 0.27 | 0.31 |
Required
- Compute Samsung’s debt-to-equity ratio for the current year and the prior year.
- Use the data provided and the ratios computed in part 1 to determine which company’s financing structure is least risky.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
How do you calculate the TTM?
Particulars
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
TTM
Sales
₱ 32,067.00
₱ 35,422.00
₱ 70,881.00
₱ 95,519.00
₱ 122,128.00
₱ 165,654.00
₱ 188,793.00
₱ 232,834.00
₱ 263,159.00
₱ 273,046.00
₱ 269,693.00
₱ 294,619.00
Question 2: The Method of Comparables: Dell, Inc.
Here are some accounting numbers and market values (in millions) for Hewlett-Packard and
Lenovo Group for 2008. These two computer manufacturers are considered to be
comparables for Dell, Inc.
Sales
Earnings
Book Value
Market Value
Hewlett-Packard Co.
$84,229
$7,264
$38,526
$115,700
Lenovo Group Ltd.
14,590
161
1,134
6,381
a. Calculate price-to-sales, price-earnings (P/E), and price-to-book (P/B) ratios for
Hewlett-Packard and Lenovo.
b. Dell reported the following numbers for fiscal year 2008:
$61,133 million
$ 2,947 million
Book value $ 3,735 million
Sales
Earnings
Apply multiples for Hewlett-Packard and Lenovo to price Dell's 2,060 million out- standing
shares. What difficulties did you encounter?
QQG7VOi1dyHlw/formResponse
* Required
Problem Solving
USE THE DATA OF XYZ COMPANY FOR THE
The following are the ledgers of XYZ Company for the year ended December 31, 2017.
Net Sales
1,890,540.00
1,058,540.00
Cash
60,100.00
74,000.00
Cost of Goods Sold
Short-term Investments
Accounts Receivable
Merchandise Inventory
Machineries, net
Accounts Payable
Income Taxes Payable
Long-term Notes Payable
Owner's Equity
Operating Expenses
Interest Expense
Income Tax Expense
506,000.00
25,000.00
86,000.00
107,800.00
133,000.00
615,300.00
160,000.00
43,500.00
210,000.00
576,700.00
What is the company's gross profit margin?*
Choose
What is the company's inventory turnover?
Choose
What is the company's current ratio?
Choose
Chapter 14 Solutions
FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
Ch. 14 - Prob. 1DQCh. 14 - Prob. 2DQCh. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - Prob. 5DQCh. 14 - Prob. 6DQCh. 14 - Prob. 7DQCh. 14 - Prob. 8DQCh. 14 - Prob. 9DQCh. 14 - Prob. 10DQ
Ch. 14 - Prob. 11DQCh. 14 - Prob. 12DQCh. 14 - Prob. 13DQCh. 14 - Prob. 14DQCh. 14 - Prob. 15DQCh. 14 - Prob. 16DQCh. 14 - Prob. 17DQCh. 14 - Prob. 18DQCh. 14 - Prob. 19DQCh. 14 - Prob. 20DQCh. 14 - Prob. 1QSCh. 14 - Prob. 2QSCh. 14 - Prob. 3QSCh. 14 - Prob. 4QSCh. 14 - Prob. 5QSCh. 14 - Prob. 6QSCh. 14 - Prob. 7QSCh. 14 - Prob. 8QSCh. 14 - Prob. 9QSCh. 14 - Prob. 10QSCh. 14 - Prob. 11QSCh. 14 - Prob. 12QSCh. 14 - Prob. 13QSCh. 14 - Prob. 14QSCh. 14 - Prob. 15QSCh. 14 - Prob. 16QSCh. 14 - Prob. 17QSCh. 14 - Prob. 18QSCh. 14 - Prob. 19QSCh. 14 - Prob. 20QSCh. 14 - Prob. 1ECh. 14 - Prob. 2ECh. 14 - Prob. 3ECh. 14 - Prob. 4ECh. 14 - Prob. 5ECh. 14 - Prob. 6ECh. 14 - Exercise 14*7 Straight-Line: Amortization of bond...Ch. 14 - Prob. 8ECh. 14 - Prob. 9ECh. 14 - Prob. 10ECh. 14 - Prob. 11ECh. 14 - Prob. 12ECh. 14 - Prob. 13ECh. 14 - Prob. 14ECh. 14 - Prob. 15ECh. 14 - Prob. 16ECh. 14 - Prob. 17ECh. 14 - Prob. 18ECh. 14 - Prob. 19ECh. 14 - Prob. 20ECh. 14 - Prob. 1APSACh. 14 - Prob. 2APSACh. 14 - Prob. 3APSACh. 14 - Prob. 4APSACh. 14 - Prob. 5APSACh. 14 - Prob. 6APSACh. 14 - Prob. 7APSACh. 14 - Prob. 8APSACh. 14 - Prob. 9APSACh. 14 - Prob. 10APSACh. 14 - Prob. 11APSACh. 14 - Prob. 1BPSBCh. 14 - Prob. 2BPSBCh. 14 - Prob. 3BPSBCh. 14 - Prob. 4BPSBCh. 14 - Prob. 5BPSBCh. 14 - Prob. 6BPSBCh. 14 - Prob. 7BPSBCh. 14 - Prob. 8BPSBCh. 14 - Prob. 9BPSBCh. 14 - Prob. 10BPSBCh. 14 - Problem 14-11EC Capital lease accounting C3 Braun...Ch. 14 - Prob. 14SPCh. 14 - Prob. 1BTNCh. 14 - Prob. 2BTNCh. 14 - Prob. 3BTNCh. 14 - Prob. 4BTNCh. 14 - Prob. 5BTNCh. 14 - Prob. 6BTNCh. 14 - Prob. 7BTNCh. 14 - Prob. 8BTNCh. 14 - Samsung (w ww.Sanisung.com). Apple, and Google are...
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
- Key comparative figures for both Apple and Google follow. Apple Google $ millions Current Year Prior Year Current Year Prior Year Liabilities + Equity $365,725 $375,319 $232,792 $197,295 Net income 59,531 48,351 30,736 12,662 Revenues 265,595 229,234 136,189 110,855 Required:1. What is the total amount of assets invested for the current year in (a) Apple and (b) Google?2. What is the current-year return on assets for (a) Apple and (b) Google?3. How much are current-year expenses for (a) Apple and (b) Google?4-a. Is the current-year return on assets better than the 10% return of competitors for Apple?4-b. Is the current-year return on assets better than the 10% return of competitors for Google?5. Relying only on return on assets, would we invest in Google or Apple?arrow_forwardhttps://docs.google.com/forms/d/e/1FAlpQLSXorlaxIMYwWjdrexbNIB0F6zOshlaGsSzvcHy9vKm0jUnAg/formResponseipli=1 Income Statement: The income statement of Taco Bell company is given for the years 2020 & 2019. 2020 2019 General and administrative expenses 25,000 24,000 Interest expense 1,200 1.500 Net sales $124,000 $138 000 12,720 11,880 $1,109 5 108.000 Selling expenses Income taxes 1,883 95,000 COGS 450 600 Gain on Sale of landarrow_forwardIncome Statement: The income statement of Taco Bell company is given for the years 2020 & 2019. 2020 2019 General and administrative expenses 25,000 24,000 Interest expense 1,200 1,500 Net sales $124,000 $138,000 Selling expenses 11,880 12,720 Income taxes $1,109.5 1,883 COGS 108,000 95,000 Gain on Sale of land 450 600 1. What is the operating profit marain for the company over the years 2020 and + O d) ENG TOSHIBAarrow_forward
- Analyze and compare Amazon.com and Wal-Mart Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Wal-Mart Stores, Inc. (WMT) is the largest retailer in the United States. Amazon and Wal-Mart compete in similar markets; however, Wal-Mart sells through both traditional retail stores and the Internet, while Amazon sells only through the Internet. Interest expense and income before income tax expense from the financial statements of both companies for two recent years follow (in millions): a. Compute the times interest earned ratio for both companies for the two years. Round to one decimal place. b. Interpret Amazons interest coverage from Year 1 to Year 2. c. Does a times interest earned ratio less than 1.0 mean that creditors will not get paid interest? d. Interpret Wal-Marts interest coverage from Year 1 to Year 2. e. Which company appears to have the greater protection for creditors?arrow_forwardn&external_browser%3D0&launchUrl=https%253A9 CT Problems Saved Help Save South Sea Baubles has the following (incomplete) balance sheet and income statement. BALANCE SHEET AT END OF YEAR (Figures in $ millions) 2019 Assets 2018 Liabilities and Shareholders' Equity 2018 2019 Current assets $ 102 $ 200 Current liabilities $ 74 $ 96 Net fixed assets 920 1,020 Long-term debt 660 870 INCOME STATEMENT, 2019 (Figures in S millions) $ 2,010 1,090 410 Revenue Cost of goods sold Depreciation Interest expense 252 a&b. What is shareholders' equity in 2018 and 2019? c&d. What is net working capital in 2018 and 2019? e. What are taxes paid in 2019? Assume the firm pays taxes equal to 21% of taxable income. f. What is cash provided by operations during 2019? g. Net fixed assets increased from $920 million to $1,020 million during 2019. What must have been South Sea's gross investment in fixed assets during 2019? Complete this question by entering your answers in the tabs below. Piey 1of 8 Next > P o…arrow_forwardIf you have the following information Sales (OMR) Year Profits(OMR) 2018 270000 6000 2019 300000 15000 The B.E.P IS: Select one: O a. OMR 670000 O b. OMR 420000 O c. The correct answer not available O d. OMR 250000arrow_forward
- II. solution. Mardou Company Martin Company P50,000,00 Compary Assets Current Assets P50,000 P25,0000 P25,0000 P12,500,000 Imvenbory Curent Labilites Equity P18,0000 PS5,00000 PI5,0000 P50000 PA5,000 PIO,0000 PT 200,000 Sales PIO,0000 Costs P8.9000 Cumpery Marin Compary Merou Compan Curent Rabio Quik Ratb Paifabilty Retum on TotalAssets Retum on Rutyarrow_forwardSolvency and Profitability Trend Analysis (Graph Picture from A-D is on the buttom for references) Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders’ equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate…arrow_forwardSolvency and Profitability Trend Analysis (Picture is attached and this is the only one I got wrong, what did I do wrong?) Addai Company has provided the following comparative information: 20Y8 20Y7 20Y6 20Y5 20Y4 Net income $273,406 $367,976 $631,176 $884,000 $800,000 Interest expense 616,047 572,003 528,165 495,000 440,000 Income tax expense 31,749 53,560 106,720 160,000 200,000 Total assets (ending balance) 4,417,178 4,124,350 3,732,443 3,338,500 2,750,000 Total stockholders’ equity (ending balance) 3,706,557 3,433,152 3,065,176 2,434,000 1,550,000 Average total assets 4,270,764 3,928,396 3,535,472 3,044,250 2,475,000 Average total stockholders' equity 3,569,855 3,249,164 2,749,588 1,992,000 1,150,000 You have been asked to evaluate the historical performance of the company over the last five years. Selected industry ratios have remained relatively steady at the following…arrow_forward
- A business has RO 250000 income and RO 60000 expenses. What is the net profit? Select one: O a. RO 160000 O b. RO 310000 O c. RO 190000 O d. RO 250000arrow_forward* CengageNOwv2 | Online teach x M HBO Max G Grammarly keAssignment/takeAssignmentMain.do?invoker3&takeAssignmentSessionLocator=&inprogress3false O eBook Six Measures of Solvency or Profitability The following data were taken from the financial statements of Loveseth Inc. for the current fiscal year. $3,040,000 Property, plant, and equipment (net) Liabilities: Current liabilities $1,200,000 Note payable, 6%, due in 15 years 1,600,000 Total liabilities $2,800,000 Stockholders' equity: Preferred $10 stock, $100 par (no change during year) $800,000 Common stock, $10 par (no change during year) 1,600,000 Retained earnings: Balance, beginning of year $1,072,000 Net income 928,000 $2,000,000 Preferred dividends $80,000 Common dividends 320,000 400,000 Balance, end of year 1,600,000 Total stockholders' equity $4,000,000 Sales $17,920,000 Interest expense $96,000 Assuming that total assets were $6,000,000 at the beginning of the current fiscal year, determine the following: Round your answ a.…arrow_forwardK Find online the annual 10-K report for Costco Wholesale Corporation (COST) as of August 30, 2020. a. Compute Costco's net profit margin, total asset turnover, and equity multiplier. b. Verify the DuPont Identity for Costco's ROE. c. Repeat the analysis from parts (a) and (b) using Walmart Stores (WMT) instead. Specifically, use Walmart's data as of January 31, 2020. Based on the DuPont Identity, what explains the difference between the two firms' ROE? a. Compute Costco's net profit margin, total asset turnover, and equity multiplier. The net profit margin is%. (Round to two decimal places.) (Round to two decimal places.) The total asset turnover is The total asset turnover is The equity multiplier is b. Verify the DuPont Identity for Costco's ROE. The ROE is%. (Round to two decimal places.) c. Repeat the analysis from parts (a) and (b) using Walmart Stores (WMT) instead. Specifically, use Walmart's data as of January 31, 2020. The net profit margin is%. (Round to two decimal places.)…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
What is Risk Management? | Risk Management process; Author: Educationleaves;https://www.youtube.com/watch?v=IP-E75FGFkU;License: Standard youtube license