C file:/ ers tabitha Desktop Homework %20-%20Week%202%20(include %20Chapters%204
ID: 2538925 • Letter: C
Question
C file:/ ers tabitha Desktop Homework %20-%20Week%202%20(include %20Chapters%204-6).html Question text eturn on Assets The following information was taken from recent Apple Inc. financial statements. Numbers are in millions 10 Net Income $26,022 $14,113 Total Assets 116,371 75,183 uired What was Apple's return on assets for 2011 and 2010? (Round to one decimal point) Based on your answer from part a., how did the company's performance change from 2010 to 2011? 2011 2010 0 Answe Return on Assets Answer Apples's performance, as measured by its return on assets, Answer from Answero % in 2010 to Answero % In 2011 FeedbackExplanation / Answer
Computation of return on assets -
(b) as from the increase in assets the performance of apple increases.
apple performance, as measured by its ROA as follwos -
Net income increases = (26022-14113)/14113 = 84.38%
Total assets increases = (116371-75183)/75183 = 54.78%
so apple performance, as measured by its ROA = net income increases/ total assets increases
=84.38/54.78
= 1.54
which means for every 1% increases in fixed assets the net income of apple would be increases to 1.54%.
Please comment in case of further clarification.
2011 2010 Net income 26022 14113 Total Assets 116371 75183 Return on assets = Net income / Total assets 22.36% 18.77%Related Questions
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