NAMA : ARISTA YULIANA SARI

NIM : 041811333171
TUGAS AKM 3 EXERCISE 3 DAN 5

EXERCISE 24-3

a) Revenue test: 10% X €102,000 = €10,200.

Segments W (€60,000) and Y (€23,000) both meet this test.
b) Operating profit test: 10% X (€15,000 + €1,500 + €1,000) = €1,750.
Segments W (€15,000), X (€1,500), and Y (€2,000 absolute amount) all meet this test.
c) Identifiable assets test: 10% X €290,000 = €29,000.
Segments W (€167,000) and X (€83,000) both meet this test.

EXERCISE 24-5

a) The acid-test ratio is the current ratio with the subtraction of inventory and prepaid
expenses (generally insignificant relative to inventory) from current assets. Any
divergence in trend between these two ratios would therefore be dependent upon the
inventory account. Inventory turnover has declined sharply in the three-year period, from
4.91 to 3.42. During the same period, sales to fixed assets have increased and total sales
have increased 7 percent. The decline in the inventory turnover is therefore not due to a
decline in sales. The apparent cause is that investment in inventory has increased at a
faster rate than sales, and this has accounted for the divergence between the acid-test and
current ratios.
b) Financial leverage has definitely declined during the three-year period. This is shown by
the steady drop in the long-term debt to assets ratio, and the debt to assets ratio.
Apparently the decline of debt as a percentage of this firm’s capital structure is accounted
for by a reduction in the long-term portion of the firm’s indebtedness. This reduction of
leverage accounts for the decrease in the return on common stock equity ratio. This
conclusion is reinforced by the fact that net income to sales and return on total assets
have both increased.
c) The company’s net investment in plant and equipment has decreased during the three-
year period 2017–2019. This conclusion is reached by using the sales-to-fixed-assets
(fixed asset turnover) and sales-as-a percent-of-2017-sales ratios.