u01a2.docx - u01a2 Bianca Washington-Pierce BUS4060Unit 1...

u01a2 Bianca Washington-Pierce
BUS4060—Unit 1 Assignment 2
Problem 1-10A
1.
a. Coca-Cola return:
ROA =
Net income
Averagetotal Assets
=>
$ 8,634
$ 76,448
=> 11.3%
b. PepsiCo return:
ROA =
Net income
Averagetotal Assets
=>
$ 6,462
$ 70,518
=> 9.2%
2. PepsiCo
3. Coca-Cola
4. By looking at the sales amount we would concluded the PepsiCo would be the
winning choice. Nevertheless, if you take a closer look Coca-Cola net income is
higher and their average assets amount. To see which company would be good to
invest in it would take us to calculate the Return on Asset percentage this
percentage would show us who evaluate management. It will also help us analyze
and forecast profits and planning activities. After calculating the numbers, Coca-
Cola had the higher percentage so we will invest in them.
1

u01a2 Bianca Washington-Pierce
BTN 1-2
1)
Polaris: Assets = Liabilities + Equity
Assets = 1,228,024
Arctic Cat: Assets = Liabilities + Equity
Assets = 272,906
2)
Polaris: ROA =
Net income
Averagetotal Assets
=>
Net Income
Beginning year assets + End of year assets / 2
227,575
( 1,061,647 + 1,228,024