FINANCIAL ACCT-CONNECT
8th Edition
ISBN: 9781266627903
Author: Wild
Publisher: INTER MCG
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Find online the annual 10-K report for Costco Wholesale Corporation (COST) for fiscal year 2015 (filed in October 2015).
a. Compute Costco's net profit margin, total asset turnover, and equity multiplier.
b. Verify the DuPont Identity for Costco's ROE.
c. If Costco's managers wanted to increase its ROE by 1 percentage point, how much higher would their asset turnover need to be?
a. Compute Costco's net profit margin, total asset turnover, and equity multiplier.
The net profit margin is
%. (Round to two decimal places.)
The total asset turnover is
(Round to two decimal places.)
The equity multiplier is
(Round to two decimal places.)
b. Verify the DuPont Identity forCostco's ROE.
The ROE is %. (Round to two decimal places.)
c. If Costco's managers wanted to increase its ROE by 1 percentage point, how much higher would their asset turnover need to be?
The total assets turnover should be
(Round to two decimal places.)
The total asset turnover should be
%
(Round to two decimal places and…
Industry, Delete any companies with missing data for AT, SALE, IB
Using Your industry (from question title), please answer these questions using Fiscal year 2015 data, use Total Assets (AT) for average investment, Income Before Extraordinary Items (IB) for income, and Sales/Turnover (Net) (SALE) for Sales Revenue
What is the average Sales Margin for your industry? Answer in percentage, to the nearest hundredth of a percent, without the % sign, example 3.45 for 3.45%, 0.45 for 0.45%
What is the average Turnover for your industry Answer to the nearest hundredth
What is the average Return on Investment for your industry Answer in percentage, to the nearest hundredth of a percent, without the % sign, example 3.45 for 3.45%
Which company (use Global Company Key) has the highest ROI in your Industry? Answer with no leading zeros using the appropriate number of digits
Nvidia Corporation, a global technology company located in Santa Clara, California, reported the following
information in its 2014 financial statements ($ in thousands):
2014
2013
Balance sheets
$ 582,740
Property, plant, and equipment (net)
Income statement
Net sales for 2014
$576,144
$4,130,162
Required:
1. Calculate the company's 2014 fixed-asset turnover ratio.
2. How would you interpret this ratio?
Chapter 8 Solutions
FINANCIAL ACCT-CONNECT
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Identify events that might lead to disposal of a...Ch. 8 - Prob. 10DQ
Ch. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Prob. 19DQCh. 8 - Prob. 20DQCh. 8 - Prob. 21DQCh. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Straight-line depreciation P1 On January 2, 2016,...Ch. 8 - Prob. 4QSCh. 8 - Computing revised depreciation C2 On January 2,...Ch. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Identify the following assets a through i as...Ch. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Caleb Co. owns a machine that costs $42,400 with...Ch. 8 - Prob. 15QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Partial-year depreciation; disposal of plant asset...Ch. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - A Exchanging assets P5 Gilly Construction trades...Ch. 8 - Recording plant asset disposals P2 P5 On January...Ch. 8 - Prob. 25ECh. 8 - Plant asset costs; depreciation methods C1 P1...Ch. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Onslow Co. purchases a used machine for $178,000...Ch. 8 - Prob. 7PSACh. 8 - Prob. 8PSACh. 8 - Prob. 1PSBCh. 8 - Prob. 2PSBCh. 8 - Asset cost allocation; straight-line depreciation...Ch. 8 - Computing and revising depreciation; revenue and...Ch. 8 - Computing and revising depreciation; selling plant...Ch. 8 - Prob. 6PSBCh. 8 - Prob. 7PSBCh. 8 - Prob. 8PSBCh. 8 - Prob. 8SPCh. 8 - Prob. 1BTNCh. 8 - Prob. 2BTNCh. 8 - Prob. 3BTNCh. 8 - Teams are to select an industry, and each team...Ch. 8 - Prob. 5BTNCh. 8 - Prob. 7BTNCh. 8 - Prob. 9BTN
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- Suppose the years 2005 to 2009 were a period of rapid growth for a certain chain of coffeehouses and the company's revenues grew by more than 50% during that period. Use the hypothetical financial data for the company to answer the questions. chart shown (attached) then questions: (A): Calculate the asset turnover ratio for 2008 and 2009. (Round your answers to two decimal places.) 2008= 2009= (B): Calculate the net profit margin (as a %) for 2007, 2008, and 2009. (Round your answers to the nearest tenth of a percent.) 2007 = % 2008 = % 2009 = % (C): Calculate the return on investment (as a %) for 2007, 2008, and 2009. (Round your answers to the nearest tenth of a percent.) 2007 = % 2008 = % 2009 = %arrow_forwardExcel Online Structured Activity: Balance Sheet Analysis Consider the following financial data for J. White Industries: Total assets turnover: 1.2Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 27%Total liabilities-to-assets ratio: 45%Quick ratio: 0.90Days sales outstanding (based on 365-day year): 29.5 daysInventory turnover ratio: 4.0 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Complete the balance sheet and sales information in the table that follows for J. White Industries. Do not round intermediate calculations. Round your answers to the nearest whole dollar. Partial Income StatementInformation Sales $ fill in the blank 2 Cost of goods sold $ fill in the blank 3 Balance Sheet Cash $ fill in the blank 4 Accounts payable $ fill in the blank 5 Accounts receivable $ fill in the blank 6 Long-term debt $…arrow_forwardComparative figures for Apple and Google follow. Apple One Year Current Year Prior $338,516 $ 365,725 260,174 265,595 $ millions Total assets Net sales Complete this question by entering your answers in the tabs below. Apple Google Required: 1. Compute total asset turnover for the most recent two years for Apple and Google using the data shown. 2. In the current year, which company is more efficient in generating net sales given total assets? 3. Does asset turnover underperform or outperform the 0.5 industry asset turnover for (a) Apple and (b) Google? Total Asset Turnover Two Years Prior $375,319 229, 234 Current Year Required 1 Required 2 Required 3 Compute total asset turnover for the most recent two years for Apple and Google using the data shown. Note: Round your answers to 2 decimal places. 0.61 times times Current Year $ 275,909 161,857 One Year Prior times times Required 1 Google One Year Prior $ 232,792 136,819 Two Years Prior $ 197,295 110,855 Required 2 >arrow_forward
- Amazon.com, Inc. is the worlds leading Internet retailer of merchandise and media. Amazon also designs and sells electronic products, such as e-readers. Netflix, Inc. is the worlds leading Internet television network. Both companies compete in the digital media and streaming space. However, Netflix is more narrowly focused in the digital streaming business than is Amazon. Sales and average book value of fixed assets information (in millions) are provided for Amazon and Netflix for a recent year as follows: a. Compute the fixed asset turnover ratio for each company. Round to one decimal place. b. Which company is more efficient in generating sales from fixed assets? c. Interpret your results.arrow_forwardThe following revenue data were taken from the December 31, 2017, Coca-Cola annual report (10-K): For each segment and each year, calculate intersegment sales (another name for transfer sales) as a percentage of total sales, Using Microsoft Excel or another spreadsheet application, create a clustered column graph to show the 2016 and 2017 percentages for each division. Comment on your observations of this data. How might a division sales manager use this data?arrow_forwardThe following revenue data were taken from the December 31, 2017, General Electric annual report (10-K): For each segment and each year, calculate intersegment sales (another name for transfer sales) as a percentage of total sales. Using Microsoft Excel or another spreadsheet application, create a clustered column graph to show the 2016 and 2017 percentages for each division. Comment on your observations of this data. How might a division sales manager use this data?arrow_forward
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