Financial Accounting Principles

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 Figures	Alltech	SynergyXT
Liabilities + owners equity..........	$11,502	$48,823
Net income.................................	3,127	9,276
Sales.........................................	15,453	44,612

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:

SynergyXT:

2. What is the return on assets for each company? Alltechs beginning-year assets equal $8,101 (in millions) and SynergyXTs beginning-year assets equal $36,171 (in millions).

Revenues Expenses = Net income

Alltech:

SynergyXT:

3. How much are expenses for each company?

Revenues Expenses = Net income

Alltech:

SynergyXT:

4. Is return on assets satisfactory for each company? Assume competitors average an 18 percent return.

[Write your answer here.]

5. What can you conclude about Alltech and SynergyXT from these computations?

[Write your answer here.]