Concept introduction:
Residual income is generally used to measure the performance of a department of an organization. It is calculated by subtracting target income from net income.
Net operating income is the organization revenue less all expenses incurred by an organization.
Required return on asset is the opportunity cost of the fund for the company.
Return on investment is the total return on investment in percentage.
Requirement 1:
We have to determine the residual income of Samsung for fiscal year 2017.
Concept introduction:
Residual income is generally used to measure the performance of a department of an organization. It is calculated by subtracting target income from net income.
Net operating income is the organization revenue less all expenses incurred by an organization.
Required return on asset is the opportunity cost of the fund for the company.
Return on investment is the total return on investment in percentage
Requirement 2:
We have to determine the return on investment for Samsung for fiscal year 2017.
Concept introduction:
Residual income is generally used to measure the performance of a department of an organization. It is calculated by subtracting target income from net income.
Net operating income is the organization revenue less all expenses incurred by an organization.
Required return on asset is the opportunity cost of the fund for the company.
Return on investment is the total return on investment in percentage
Requirement 3:
We have to determine the return on investment for Apple for fiscal year 2017.
Concept introduction:
Residual income is generally used to measure the performance of a department of an organization. It is calculated by subtracting target income from net income.
Net operating income is the organization revenue less all expenses incurred by an organization.
Required return on asset is the opportunity cost of the fund for the company.
Return on investment is the total return on investment in percentage
Requirement 4:
We have to determine which Company has higher return on investment for fiscal year 2017.
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Managerial Accounting
- Financial statement analysis The financial statements for Nike, Inc., are presented in Appendix D at the end of the text. Use the following additional information (in thousands): Instructions 1. Determine the following measures for the fiscal years ended May 31, 2016, and May 31, 2015. Round ratios and percentages to one decimal place. a. Working capital b. Current ratio c. Quick ratio d. Accounts receivable turnover e. Number of days sales in receivables f. Inventory turnover g. Number of days sales in inventory h. Ratio of liabilities to stockholders equity i. Asset turnover j. Return on total assets. k. Return on common stockholders equity l. Price-earnings ratio, assuming that the market price was 54.90 per share on May 29, 2016, and 52.81 per share on May 30, 2015 m. Percentage relationship of net income to sales 2. What conclusions can be drawn from these analyses?arrow_forwardFinancial statement data for years ending December 31 for Latchkey Company follows: a. Determine the ratio of sales to assets for 2016 and 2015. b. Does the change in the ratio of sales to assets from 2015 to 2016 indicate a favorable or an unfavorable trend?arrow_forwardRatio Analysis The following information was taken from Logsden Manufacturings trial balances as of December 31, 2018, and December 31, 2019. Required: 1. Calculate the gross profit margin and operating margin percentage for 2019. ( Note: Round answers to two decimal places.) 2. Assuming that all of the operating expenses are fixed (or, wont change as sales increase or decrease), what will be the operating margin percentage if sales increase by 25%?arrow_forward
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