Compute the industry average for return on assets

Assignment Help Accounting Basics
Reference no: EM131763863

Question: The following information is provided for Nguyen Company and Northwest Corporation.

(in $ millions)

Nguyen Company

Northwest Corporation

Net income 2017

  $165

  $420

Net sales 2017

1,650

4,900

Total assets 12/31/15

1,000

2,400

Total assets 12/31/16

1,050

3,000

Total assets 12/31/17

1,150

4,000

If Nguyen and Northwest are in the same industry and the industry average for return on assets is equal to 30%, which of the following statements is true?

A. Nguyen is more profitable than Northwest.

B. Northwest is more profitable than Nguyen.

C. Both Nguyen and Northwest are more profitable than the average company in their industry

D. Nguyen is more profitable than the average company in its industry.

Reference no: EM131763863

Questions Cloud

Management evaluate and monitor the business process : Determine the reports you would create to assist management evaluate and monitor the business process.
Workforce requirements and develop workforce planning : Research workforce requirements and develop workforce planning - Review the JKL simulated business documents - current data on staff turnover and demographics
Identify which aspects of this narrative fit : Identify which aspects of this narrative fit each of the following parts of the definition of auditing
Develop leadership profile of that individual : Then, develop a leadership profile of that individual and the significant contributions they made to an organization or their respective field.
Compute the industry average for return on assets : If Nguyen and Northwest are in the same industry and the industry average for return on assets is equal to 30%, which of the following statements is true?
Lead with credibility and caring : Explain what they mean to you within a service management focused organization. Lead with Credibility and Caring, Invest in Frontline Leadership
What is the break-even point in units and in sales dollars : What is the break-even point in units and in sales dollars, What are the variable expenses per unit
What was the flexible budget variance : What was the flexible budget variance (a positive number means a favorable variance and a negative number means an unfavorable variance)?
Explain the agreement to pay stipulated amounts : For each of the following definitions, indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd