Access Samsung’s and Apple’s income statements (in Appendix A) for fiscal year 2017. The ratio of investments in property, plant, and equipment to sales can be used to assess how much a company is investing to maintain and expand its productive capacity.

Required

1. Compute Samsung’s ratio of investments in property, plant, and equipment to sales for 2017.

2. Compute Apple’s ratio of investments in property, plant, and equipment to sales for fiscal 2017.

3. Drawing on the answers to parts 1 and 2, which company (Samsung or Apple) invested more (as a percent of sales) in property,plant, and equipment?

4. Assume Samsung forecasts total sales of 240,000,000 for 2018 and plans to invest 18% of 2018 forecasted sales in property,plant, and equipment. What amount will Samsung budget for investments in property, plant, and equipment for 2018? Forecasts and budgets are all in millions of Korean won.