Quiz 2

Name: Nou Channarith, ID: 80210751

Solution:
a. Affiliate has the highest return on sales
Personal Foreign
Net income Software Computer Operation
Sales 5.0% 3.3% 8.0%
The foreign operation affiliate has the highest return on sales.
b. Affiliate has the lowest return on assets
Personal Foreign
Net income Software Computers Operations
total assets 40.0% 8.0% 13.3%
The personal computers affiliate has the lowest return on assets.
c. Affiliate has the highest total asset turnover
Personal Foreign
Sales Sofetware Computers Operations
total assets 8.0  2.4  1.7 
The software affiliate has the highest total asset turnover.
d. affiliate has the highest return on stockholders’ equity
Personal Foreign
Net income Software Computers Operations
Stockholders ' equity 50.0% 20.0% 16.0%
The Software affiliate has the highest return on stockholders’ equity.
e. affiliate has the highest debt ratio
Personal Foreign
Debt Software Computer Operations
Total Assets 20.0% 60.0% 16.7%
The Personal computers has the highest debt/total assets ratio.
f. This is because of its high total turnover ratio of 8.0x times in part c.
g. This is because of the personal computers affiliate has a higher debt ratio (60.0%) than foreign
operations affiliate (16.7%).