Fundamentals of Financial Accounting - With Access
5th Edition
ISBN: 9781259695858
Author: PHILLIPS
Publisher: MCG
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Question
Chapter 9, Problem 9.14E
(1)
To determine
Fixed asset turnover of Incorporation A for the years 2011, 2012, and2013
(2)
To determine
To analyze: The performance of Incorporation A by comparing the fixed asset turnover of 10.7 with that of Incorporation M with 8.5
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Students have asked these similar questions
Use the following selected 2016 balance sheet and income statement information for Home Garden Supply Co. (in millions) to compute asset turnover (AT) to the nearest hundredth of a percent.
Net income
Gross profit
on sales
Average
total assets
Sales
Tax rate on operating profit
$69,960
$700,400
$360,600
$1,356,504
35%
Question 24 options:
A)
3.76
B)
5.17
C)
0.27
D)
17.30
The 2017 annual report of Tootsie Roll Industries contains the following information.
(in millions)
December 31, 2017
0000
December 31, 2016
Total assets
$930.9
$920.1
Total liabilities
197.1
208.6
Net sales
515.7
517.4
Net income
80.7
67.2
Instructions
Compute the following ratios for Tootsie Roll for 2017.
a. Asset turnover.
b. Return on assets.
c. Profit margin on sales.
d. How can the asset turnover be used to compute the return on assets?
Office Depot, Inc. is one of the largest suppliers of office products in the United States. Suppose it had net income of $738.7 million and sales of $50,000 million in 2020 Its total assets were $13,073.1 million at the beginning of the year and $13,717.3 million at the end of the year. What is Office Depot, Inc.’s (a) asset turnover and (b) profit margin? (Round to two decimals.) Provide a brief interpretation of your results.
Chapter 9 Solutions
Fundamentals of Financial Accounting - With Access
Ch. 9 - Define long-lived assets. What are the two common...Ch. 9 - Under the cost principle, what amounts should be...Ch. 9 - What is the term for recording costs as assets...Ch. 9 - 4. Waste Management, Inc., regularly incurs costs...Ch. 9 - Distinguish between ordinary repairs and...Ch. 9 - Describe the relationship between the expense...Ch. 9 - Why are different depreciation methods allowed?Ch. 9 - In computing depreciation, three values must be...Ch. 9 - Prob. 9QCh. 9 - After merging with Northwest Airlines, Delta...
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- Analyze Home Depot The Home Depot (HD) reported the following data (in millions) in its recent financial statements: a. Determine the asset turnover ratio for Home Depot for Year 2 and Year 1. Round to two decimal places. b. What conclusions can be drawn from these ratios concerning the change in the ability of Home Depot to effectively use its assets to generate sales?arrow_forwardAnalyze and compare Kroger and Tiffany The Kroger Company (KR), a national supermarket chain, reported the following data (in millions) in its financial statements for a recent year: a.Compute the asset turnover ratio. Round to two decimal places. b.Tiffany Co. (TIF) is a large North American retailer of jewelry. Tiffanys asset turnover ratio is 0.78. Why would Tiffanys asset turnover ratio be lower than that of Kroger?arrow_forwardWhat is the comparison (analysis) of the Fixed Asset Turnover Ratio of Industry Average Ratio and the Company A Ratio? The Fixed Asset Turnover Ratio has decreased and increased. Why? Industry Average Fixed Asset Turnover Ratio 2015: 3.00 2016: 3.18 2017: 3.58 2018: 2.23 2019: 2.94 Company A Fixed Asset Turnover Ratio 2015: 7.48 2016: 6.14 2017: 7.70 2018: 4.59 2019: 6.38arrow_forward
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