Financial Accounting Principles: Transaction Analysis and

School: Cambridge College - Course: NUR HEALTH ASS - Subject: Accounting

FINANCIALACCOUNTINGP RINCIPLES Assessment 1: Transaction Analysis and Financial Statements Worksheet Use this worksheet to complete the following three exercises for Assessment 1. Refer to the instructions in the course for submitting your assessment. Exercise 1-1 Key comparative figures ($ millions) for two companies, Alltech and SynergyXT, are presented in the following table. Key FiguresAlltechSynergyXT Liabilities + owners' equity.................$11,502$48,823 Net income.........................................3,1279,276 Sales..................................................15,45344,612 For this exercise, perform a comparative analysis of these two companies that answers the following five questions: 1.What is the total amount of assets invested in each company? Total assets = Liabilities + Equity Alltech: $11,502 SynergyXT: $48,823 1.What is the return on assets for each company? Alltech's beginning-year assets equal $8,101 (in millions) and SynergyXT's beginning-year assets equal $36,171 (in millions). Revenues - Expenses = Net income Alltech: 38.6% SynergyXT: 25.6% 2.How much are expenses for each company? Revenues - Expenses = Net income Alltech: $12,326 SynergyXT: $35,336 1

3.Is return on assets satisfactory for each company? Assume competitors average an 18 percent return. The return on assets is satisfactory for each company is satisfactory, especially when compared to competitors average 18%. Alltech is returning 10% more than average, and SynergyXT is returning 7% more. 4.What can you conclude about Alltech and SynergyXT from these computations? I can conclude from my computations that due to Alltech and SynergyXT return on assets they are both able apply their assets into revenue faster than their competitors who are averaging at 18%.