Refer to Samsung’s financial statements in Appendix A. Compute its cost of goods available for sale for the year ended December 31, 2015.

Data From Samsung Financial Statements Appendix A 

Access Samsung’s income statement (in Appendix A) for the business year 2015.
Required
1. Is Samsung’s selling and administrative expenses budget likely to be an important budget in its master
budgeting process? Explain.
2. Identify three examples of expenses that would be reported as selling and administrative expenses on
Samsung’s income statement.
3. Who likely has the initial responsibility for Samsung’s selling and administrative expense budget? Explain.

Data From Samsung Appendix Financial Statement:

Transcribed Image Text:

Samsung Electronics Co., Ltd. and Subsidiaries CONSOLIDATED STATEMENTS OF INCOME For the year ended December 31 2015 2014 (In millions of Korean won) KRW KRW Revenue 200,653,482 206,205,987 Cost of sales 123,482,118 128,278,800 Gross profit 77,171,364 77,927,187 Selling and administrative expenses 50,757,922 52,902,116 Operating profit 26,413,442 25,025,071 Other non-operating income 1,685,947 3,801,357 Other non-operating expense 3,723,434 2,259,737 Share of profit of associates and joint ventures 1,101,932 342,516 Financial income 10,514,879 8,259,829 Financial expense 10,031,771 7,294,002 Profit before income tax 25,960,995 27,875,034 Income tax expense 6,900,851 4,480,676 Profit for the year 19,060,144 23,394,358 Profit attributable to owners of the parent 18,694,628 23,082,499 Profit attributable to non-controlling interests 365,516 311,859 Earnings per share for profit attributable to owners of the parent -Basic 126,305 153,105 -Diluted 126,303 153,096