Samsung (Samsung.com) is a leading manufacturer of consumer electronic products. The following selected information is available from Samsung's financial statements.
(millions of Korean won) .................Current Year ................Prior Year
Current assets . . . . . . . . . . . . . . . . . ..... . . ₩87,269,017.............. ₩71,502,063
Current liabilities . . . . . . . . . . . . . . . . ...... . 46,933,052 ................44,319,014
Required
1. Locate the notes to its December 31, 2012, financial statements at the company's Website, and read note 2.24 Summary of Significant Accounting Policies-Revenue Recognition, first paragraph only. When is revenue recognized by Samsung?
2. Refer to Samsung's financials in Appendix A. What is Samsung's profit margin for the year ended December 31, 2012?
3. Compute Samsung's current ratio for both the current year and the prior year.
4. Comment on any change from the prior year to the current year for the current ratio.