Question

Refer to Samsung’s financial statements in Appendix A. What percent of its current assets is inventory as of December 31, 2015 and 2014?

Short answer

The inventory of the business entity is15.07% of its current assets.

Step-by-step solution

Step-By-Step SolutionStep 1: Definition of Income Statement

An income statement can be defined as the Schedule representing the revenue earned from the business and the expenses incurred for thecompany’s operation.

Calculation of inventory as percentage of current assets

$$\begin{gathered} \mathrm{Inventory}\mathrm{as}\mathrm{Percentage}\mathrm{of}\mathrm{current}\mathrm{assets}=\frac{\mathrm{Inventory}}{\mathrm{CurrentAssets}}\times 100 \\ =\frac{\mathrm{KRW}18,811,794\mathrm{millions}}{\mathrm{KRW}124,814,725\mathrm{millions}}\times 100 \\ =15.07\mathrm{\%} \end{gathered}$$