Question
Quantum Moving Company has the following data. Industry information also is shown. Company data (in M of AED) Industry Data on Year Net Income Total
Quantum Moving Company has the following data. Industry information also is shown.
| Company data (in M of AED) | Industry Data on |
| Year | Net Income | Total Assets | Net Income/Total Assets |
| 2014 | AED | 420 |
| AED | 2,840 |
|
| 14.0 | % |
|
| 2015 |
| 420 |
|
| 3,260 |
|
| 12.8 |
|
|
| 2016 |
| 410 |
|
| 3,830 |
|
| 11.9 |
|
|
- Calculate the company's data in terms Return On Assets Ratio for every year (2014, 2015 and 2016). (1.5 marks)
- As an industry analyst comparing the firm to the industry, explain the trend of these ratios and indicate whether these ratios are favorable/unfavorable in comparison to the Industry Average. (2 marks)
- Recommend what the company should do to improve its ratios. (State one factor that could help increase ROA). (2 marks)
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A New Auditors Guide To Planning Performing And Presenting IT Audits
Authors: Nelson Gibb, CIA, CISA, CISSP, Divakar Jain, CA, CPA, Amitesh Joshi, Surekha Muddamsetti, Sarabjot Singh
1st Edition
0894136852, 978-0894136856
