1.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
To Calculate:
Return on assets.
2.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
To Calculate:
Successful in total sales.
3.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
To Calculate:
Successful in return over assets.
4.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
To Calculate:
One paragraph on over which company is better for the option of investment.
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Loose Leaf for Financial Accounting: Information for Decisions
- Coca-Cola and PepsiCo both produce and market beverages that are direct competitors. Key financial figures for these businesses for a recent year follow. Which company is more successful in returning net income from its assets invested?arrow_forwardCoca-Cola and PepsiCo both produce and market beverages that are direct competitors. Key financialfigures for these businesses for a recent year follow.Key Figures ($ millions) Coca-Cola PepsiCoSales . $46,542 $66,504Net income . 8,634 6,462Average assets . . . . . . . . . . . . . . . . . . . . 76,448 70,518Required Which company is more successful in returning net income from its assets invested?arrow_forwardRevenues Cost of goods sold Earnings Total assets Shareholders equity Coca-Cola $41,866 16,456 6,536 87,274 23,050 Pepsico $62,806 28,211 6,324 74,140 11,252 Keurig Dr Pepper $6,435 2,591 849 9,800 2,130arrow_forward
- Assume that you are purchasing an investment and have decided to invest in a company in the digital phone business. You have narrowed the choice to Digitized Corp. and Very Network, Inc. and have assembled the following data. LOADING... (Click to view the income statement data.) Data Table Selected income statement data for the current year: Digitized Very Network Net Sales Revenue (all on credit) $418,290 $494,940 Cost of Goods Sold 210,000 256,000 Interest Expense 0 15,000 Net Income 62,000 70,000 (Click to view the balance sheet and market price data.) Data Table Selected balance sheet and market price data at the end of the current year: Digitized Very Network Current Assets: Cash $24,000 $21,000 Short-term Investments 42,000 19,000 Accounts Receivables, Net 36,000 46,000 Merchandise Inventory 67,000 98,000 Prepaid Expenses 22,000 18,000 Total…arrow_forwardRequired information Skip to question [The following information applies to the questions displayed below.] CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 4,980,000 Net operating income $ 298,800 Average operating assets $ 830,000 The following questions are to be considered independently. Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %arrow_forwardFollowing are data for BioBeans and GreenKale, which sell organic produce and are of similar size. GreenKale $ 154,500 77,250 7,000 Average total assets Net sales Net income 1a. Compute the profit margin for both companies. 1b. Compute the return on total assets for both companies. 2. Based on analysis of these two measures, which company is the preferred investment? BioBeans $ 195,000 65,000 13,650 Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2 Compute the profit margin for both companies. BioBeans GreenKale Numerator: Profit margin 1 1 1 Denominator: Required 1A II Profit margin ratio = Profit margin ratio = Required 1B % %arrow_forward
- Cola Company and Pop Company both produce and market beverages that are direct competitors. Key financial figures for these businesses for a recent year follow: Key Figures ($ millions) Cola Company Pop Company Sales $ 45,660 $ 65,072 Net income 9,300 7,107 Average assets 75,000 69,000 Required: 1. Compute return on assets for Cola Company and Pop Company. (Enter values in $ millions.)arrow_forwardThe 2024 income statement of Adrian Express reports sales of $20,310,000, cost of goods sold of $12,500,000, and net income of $1,900,000. Balance sheet information is provided in the following table. Assets Current assets: Cash Accounts receivable Inventory ADRIAN EXPRESS Balance Sheets December 31, 2024 and 2023 Long-term assets Total assets Liabilities and Stockholders' Equity Current liabilities Long-term Liabilities Common stock Retained earnings Total liabilities and stockholders' equity Industry averages for the following four risk ratios are as follows: Gross profit ratio Return on assets Profit margin Asset turnover Return on equity 45% 25% 15% 6.5 35% tines 2024 2023 $800,000 $910,000 1,725,000 1,175,000 2,175,000 1,625,000 5,000,000 4,390,000 $9,700,000 $8,100,000 $2,030,000 $1,820,000 2,490,000 2,560,000 2,025,000 1,975,000 3,155,000 1,745,000 $9,700,000 $8,100,000arrow_forwardKey Figures ($ millions) Sales Net income Average assets Required: 1. Compute return on assets for Coca-Cola and PepsiCo. A Note: Enter values in $ millions. Coca-Cola $ 46,542 8,634 76,448 Coca-Cola return PepsiCo return Numerator: + PepsiCo $ 66,504 6,462 70,518 + + Return on Assets Denominator: ||||| = Return on Assets Return on assets 2. Which company is more successful in its total amount of sales to consumers? PepsiCo Coca-Cola 3. Which company is more successful in returning net income from its assets invested?arrow_forward
- Following are data for BioBeans and GreenKale, which sell organic produce and are of similar size. Average total assets Net sales Net income BioBeans $227,500 115,000 11,375 Greenkale $174,000 69,600 2,800 Required: 1a. Compute the profit margin for both companies. 1b. Compute the return on total assets for both companies. 2. Based on analysis of these two measures, which company is the preferred investment?arrow_forwardThe information for three businesses operating in the same industry is provided in the table that follows: BUSINESS COMPANY A COMPANY B COMPANY C Sales $ 300,000 $ 420,000 $ 380,000 Net income $ 18,000 $ 20,000 $ 19,000 Net profit margin ? ? ? Based on this data, calculate the net profit margin for each company. What is an analyst most likely to conclude about the profitability of the businesses? Group of answer choices Company A, is more profitable than company B and more profitable than company C. Company C is more profitable than company A, but less profitable than company B. Company B is more profitable than company A and less profitable than company C. Company C is more profitable than company A and less profitable than company B.arrow_forward[The following information applies to the questions displayed below.] CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales Net operating income Average operating assets $ 4,700,000 $ 188,000 $ 940,000 The following questions are to be considered independently. Required: 1. Compute the company's return on investment (ROI). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %arrow_forward
- Financial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage Learning