50.1K

Verified Solution

Link Copied!

Appendix The most recent income statements of LG Electronics are presented in the Appendix (next page) to this exam. Note that the amounts are in millions of Korean Won (KRW). Required: Using the information in the Appendix, answer the following FOUR parts. (a) What was the company's gross profit rate in 2020? Round the percentage to one decimal place. For example, 34.5687% is expressed as 34.6%. Your answer = % (b) What was the company's operating profit as a percentage of net sales in 2019? Round the percentage to one decimal place. For example, 34.5687% is expressed as 34.6%. Your answer = % (c) In its 2020 balance sheet, LG Electronics reported a beginning inventory of KRW 5,863,418 million, an ending inventory of KRW 7,447,157 million. What was the company's inventory turnover in 2020 ? Round your answer to one decimal place. For example, 34.5687 is expressed as 34.6 . Your answer = Times (d) According to the company's notes to the 2020 financial statements, "Other nonoperating income" of KRW 2,591,900 million on the income statement includes "gains on disposal of property, plant and equipment" of KRW 33,504 million. Explain why gains on disposal of property, plant and equipment are classified as "other (non-operating) income" on the income statement. Make sure to define the following terms in your answer: "other," "income," and "gain." (Notes: Your answer should not exceed 8 lines. For possible penalties, refer to the Notes on Question 6.)

Answer & Explanation Solved by verified expert

See Answer