assignment 2.21, 2.28, 2.32, Q2.10

Question

Harshit · Accepted Answer

Question 2.32
Following table shows the sales and net income of 2017, 2018 and 2019:- Amount in $ billion
		Particulars
	2019
	2018
	2017
	Sales
	67.7
	66.8
	65.10
	Net Income
	3.9
	9.8
	10
(a) The sales have increased by 4% but the net income of the company has decreased by 61% between the years 2017 and 2019. The net profit ratio of the company in the year 2017 was 15.36% but the same fell to 5.76% in the year 2019.
(b) The following table shows the percentage of assets:-
	Assets
	2019
	% of Total Assets
	2018
	% of Total Assets
	% Change
	Current Assets
	 
	 
	 
	 
	 
	Cash and cash equivalents
	4239
	3.68%
	2569
	2.17%
	65.01%
	Available-for-sale investment securities
	6048
	5.25%
	9281
	7.84%
	-34.83%
	Accounts receivable
	4951
	4.30%
	4686
	3.96%
	5.66%
	 
	 
	 
	 
	 
	 
	Inventories
	 
	 
	 
	 
	 
	Materials and supplies
	1289
	1.12%
	1335
	1.13%
	-3.45%
	Work in process
	615
	0.53%
	588
	0.50%
	4.59%
	Finished goods
	3116
	2.71%
	2815
	2.38%
	10.69%
	 
	 
	 
	 
	 
	 
	Prepaid expenses and other current assets
	2218
	1.93%
	2046
	1.73%
	8.41%
	Total Current Assets
	22476
	19.53%
	23320
	19.71%
	-3.62%
	 
	 
	 
	 
	 
	 
	Property, Plant And Equipment, Net
	21271
	18.48%
	20600
	17.41%
	3.26%
	Goodwill
	40273
	34.99%
	45175
	38.18%
	-10.85%
	Trademarks And Other Intangible Assets
	24215
	21.04%
	23902
	20.20%
	1.31%
	Other Noncurrent Assets
	6863
	5.96%
	5313
	4.49%
	29.17%
	 
	 
	 
	 
	 
	 
	Total Assets
	115098
	100.00%
	118310
	100.00%
	-2.71%
 
The Available-for-sale investment securities have decreased by 34.83% which is a substantial decrease in important current assets. The goodwill of the company has also decreased by 10.

assignment 2.21, 2.28, 2.32, Q2.10

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