Compare the level of capital spending across the two firms. Point out how the sp
ID: 2384301 • Letter: C
Question
Compare the level of capital spending across the two firms. Point out how the spending was similar and/or different and speculate why the similarities or differences might exist. You must use at least three scholarly sources in addition to the text. Support your comparison with evidence from the text, external sources, and articles/reports.
Samsung
Dec 31, 2014
Dec 31, 2013
Dec 31,2014
Dec 31, 2013
Assets
Current Assets
Cash & cash equil.
16,840,766
16,284,780
15,997,688
15,469,535
Short-term financial instruments
41,689,776
36,772,702
39,602,713
34,884,299
Short –term available for sale assets
3,286,798
1,488,527
3,122,255
1,414,009
Trade receivables
24,694,610
24,988,532
23,458,355
23,737,562
Non-trades receivable
3,539,875
2,887,402
3,362,663
2,742,854
Advances
1,989,470
1,928,188
1,889,874
1,831,660
Prepaid expenses
3,346,593
2,472,950
3,179,057
2,349,150
Inventories
17,317,504
19,134,868
16,450,560
18,176,943
Other current assets
17,795,143
2,135,589
1,705,275
2,028,678
Assets held for sale
645,491
2,716,733
613,177
2,580,729
Total Current assets
115,146,026
110,760,271
109,381,617
105,215,419
Non- Current assets
Long term available for sale assets
12,667,509
6,238,380
12,033,351
5,926,076
Investment in assoc. & joint ventures
5,232,461
6,422,292
4,970,515
6,100,781
Property, plant and equipment
80,872,950
75,496,388
76,824,309
71,716,907
Intangible assets
4,785,473
3,980,600
4,545,904
3,781,324
Long-term prepaid expenses
4,857,126
3,465,783
4,613,970
3,292,280
Deferred income tax assets
4,526,595
4,621,780
4,299,986
4,390,406
Other non-current assets
2,334,818
3,089,524
2,217,933
2,934,857
Total assets
230,422,958
214,075,018
218,887,585
203,358,050
LG
Assets
March 31,2014
Dec 31, 2013
Current Assets
Cash and cash equivalents
2,713,842
2,645,270
Financial deposits
67,850
67,896
Trade receivables
8,147,898
7,117,402
Loans and other receivables
488,882
596,505
Other financial assets
7,103
17,430
Inventories
5.572.569
4,838,830
18,204,499
16,325,058
Non-current Assets
Financial deposits
89,382
96,992
Loans and other receivables
580,487
601,978
Other financial assets
56,220
55,714
Property, plant and equipment
10,306,823
10,341,993
Intangible assets
1,335,166
1,363,690
Deferred income tax assets
1,548,719
1,619,551
Investments in associates and joint ventures
4,248,792
4,329,583
Investment property
5,334
4,923
Other non-current assets
782,823
788,582
18,953,746
19,203,006
Total Assets
37,158,245
35,528,064
Liabilities
Current Liabilities
Trade payables
6,875,735
5,691,114
Borrowings
3,079,469
3,022,723
Other payables
2,553,385
2,829,686
Other financial liabilities
17,542
10,890
Current income tax liabilities
84,793
74,131
Provisions
668,889
663,701
Other current liabilities
2,796,425
2,721,759
Non-current liabilities
Borrowings
6,574,525
6,188,306
Other payables
18,111
27,670
Other financial liabilities
9,475
10,663
Deferred income tax liabilities
7,371
7,651
Net defined benefit liability
655,505
580,919
Provisions
1,016,246
998,795
Other non-current liabilities
8,291,782
7,824,691
Total Liabilities
24,368,020
22,838,695
Equity attributable to owners
Of the Parent Company
Paid-in capital:
Capital stock
904,169
904,169
Share premium
3,088,179
3,088,179
Retained earnings
8,939,326
8,885,523
Accumulated other comprehensive loss
(881,099)
(907,440)
Other components of equity
(203,432)
(231,229)
11,820,143
11,739,202
Non-controlling Interests
970,082
950,167
Total Equity
12,790,225
12,689,369
Total Liabilities and equity
37,158,245
35,528,064
Calculation of capital Expenditure :
Dec 31, 2014
Dec 31, 2013
Samsung
Assets
Non- Current assets
$
$
Long term available for sale assets
12,667,509
6,238,380
Investment in assoc. & joint ventures
5,232,461
6,422,292
Property, plant and equipment
80,872,950
75,496,388
Intangible assets
4,785,473
3,980,600
Total
$103,558,393
$92,137,660
Capital Expenditure for 2014= 103558393-92137660
11,420,733
Calculation of capital Expenditure :
March 31, 2014
Dec 31, 2013
LG
$
$
Non-current assets
Financial deposits
89,382
96,992
Loans and other receivables
580,487
601,978
Other financial assets
56,220
55,714
Property, plant and equipment
10,306,823
10,341,993
Intangible assets
1,335,166
1,353,690
Deferred income tax assets
1,548,719
1,619,551
Investments in associates and joint ventures
4,248,792
4,329,583
Investment property
5334
4923
Other non-current assets
782,823
788,582
Total
$18,953,746
$19,203,006
Capital Expenditure for 2014= 18953746-19203006
$(249,260)
Discussions:
Capital Expenditure for Samsung has increased in year 2014
Capital Expenditure for Samsung has Decreased in year 2014
Samsung
Dec 31, 2014
Dec 31, 2013
Dec 31,2014
Dec 31, 2013
Assets
Current Assets
Cash & cash equil.
16,840,766
16,284,780
15,997,688
15,469,535
Short-term financial instruments
41,689,776
36,772,702
39,602,713
34,884,299
Short –term available for sale assets
3,286,798
1,488,527
3,122,255
1,414,009
Trade receivables
24,694,610
24,988,532
23,458,355
23,737,562
Non-trades receivable
3,539,875
2,887,402
3,362,663
2,742,854
Advances
1,989,470
1,928,188
1,889,874
1,831,660
Prepaid expenses
3,346,593
2,472,950
3,179,057
2,349,150
Inventories
17,317,504
19,134,868
16,450,560
18,176,943
Other current assets
17,795,143
2,135,589
1,705,275
2,028,678
Assets held for sale
645,491
2,716,733
613,177
2,580,729
Total Current assets
115,146,026
110,760,271
109,381,617
105,215,419
Non- Current assets
Long term available for sale assets
12,667,509
6,238,380
12,033,351
5,926,076
Investment in assoc. & joint ventures
5,232,461
6,422,292
4,970,515
6,100,781
Property, plant and equipment
80,872,950
75,496,388
76,824,309
71,716,907
Intangible assets
4,785,473
3,980,600
4,545,904
3,781,324
Long-term prepaid expenses
4,857,126
3,465,783
4,613,970
3,292,280
Deferred income tax assets
4,526,595
4,621,780
4,299,986
4,390,406
Other non-current assets
2,334,818
3,089,524
2,217,933
2,934,857
Total assets
230,422,958
214,075,018
218,887,585
203,358,050
Explanation / Answer
Calculation of capital Expenditure :
Samsung
Dec 31,2014
Dec 31,2013
Assets
Non- Current assets
Long term available for sale assets
$ 12,667,509
$ 6,238,380
Investment in assoc. & joint ventures
$ 5,232,461
$ 6,422,292
Property, plant and equipment
$ 80,872,950
$ 75,496,388
Intangible assets
$ 4,785,473
$ 3,980,600
Total
$ 103,558,393
$ 92,137,660
Capital Expenditure for 2014= 103558393-92137660
$ 11,420,733
Calculation of capital Expenditure :
LG
March 31,2014
Dec 31,2013
Non-current assets
Financial deposits
89382
96992
Loans and other receivables
580487
601978
Other financial assets
56220
55714
Property, plant and equipment
10306823
10341993
Intangible assets
1335166
1363690
Deferred income tax assets
1548719
1619551
Investments in associates and joint ventures
4248792
4329583
Investment property
5334
4923
Other non-current assets
782823
788582
Total
$ 18,953,746
$ 19,203,006
Capital Expenditure for 2014= 18953746-19203006
$ (249,260)
Discussions:
Capital Exependiture for Samsung has increased in year 2014
Capital Exependiture for Samsung has Deccreased in year 2014
Calculation of capital Expenditure :
Samsung
Dec 31,2014
Dec 31,2013
Assets
Non- Current assets
Long term available for sale assets
$ 12,667,509
$ 6,238,380
Investment in assoc. & joint ventures
$ 5,232,461
$ 6,422,292
Property, plant and equipment
$ 80,872,950
$ 75,496,388
Intangible assets
$ 4,785,473
$ 3,980,600
Total
$ 103,558,393
$ 92,137,660
Capital Expenditure for 2014= 103558393-92137660
$ 11,420,733
Calculation of capital Expenditure :
LG
March 31,2014
Dec 31,2013
Non-current assets
Financial deposits
89382
96992
Loans and other receivables
580487
601978
Other financial assets
56220
55714
Property, plant and equipment
10306823
10341993
Intangible assets
1335166
1363690
Deferred income tax assets
1548719
1619551
Investments in associates and joint ventures
4248792
4329583
Investment property
5334
4923
Other non-current assets
782823
788582
Total
$ 18,953,746
$ 19,203,006
Capital Expenditure for 2014= 18953746-19203006
$ (249,260)
Discussions:
Capital Exependiture for Samsung has increased in year 2014
Capital Exependiture for Samsung has Deccreased in year 2014
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