Cyberdyne Systems and Virtucon are competitors focusing on the latest technologies. Selected financial data is provided below. (Round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).)   ($ in millions) Cyberdyne Virtucon Net sales $ 43,905   $ 7,084   Net income   10,537     1,488   Operating cash flows   15,465     1,600   Total assets, beginning   62,905     16,584   Total assets, ending   64,905     16,284       Required: 1. Calculate the return on assets for both companies.   2. Calculate the cash return on assets for both companies.       3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.     4. Which company has the more favorable ratios?   multiple choice Cyberdyne Systems Virtucon

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Chapter6: Statement Of Cash Flows
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Problem 11-5A Calculate and analyze ratios (LO11-6)

Cyberdyne Systems and Virtucon are competitors focusing on the latest technologies. Selected financial data is provided below. (Round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).)

 

($ in millions) Cyberdyne Virtucon
Net sales $ 43,905   $ 7,084  
Net income   10,537     1,488  
Operating cash flows   15,465     1,600  
Total assets, beginning   62,905     16,584  
Total assets, ending   64,905     16,284  
 

 

Required:

1. Calculate the return on assets for both companies.

 

2. Calculate the cash return on assets for both companies.

 

 

 

3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.

 

 

4. Which company has the more favorable ratios?

 

multiple choice

  • Cyberdyne Systems
  • Virtucon

 

Required:
1. Calculate the return on assets for both companies.
($ in millions)
Return on Assets
= Return on Assets
Cyberdyne
Virtucon
2. Calculate the cash return on assets for both companies.
($ in millions)
Cash Return on Assets
Cash Return on Assets
Cyberdyne
Virtucon
Transcribed Image Text:Required: 1. Calculate the return on assets for both companies. ($ in millions) Return on Assets = Return on Assets Cyberdyne Virtucon 2. Calculate the cash return on assets for both companies. ($ in millions) Cash Return on Assets Cash Return on Assets Cyberdyne Virtucon
3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.
($ in millions)
Cash Flow to Sales
Cash Flow to Sales
Cyberdyne
Virtucon
Asset Turnover
Asset Turnover
times
times
Cyberdyne
Virtucon
II
Transcribed Image Text:3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies. ($ in millions) Cash Flow to Sales Cash Flow to Sales Cyberdyne Virtucon Asset Turnover Asset Turnover times times Cyberdyne Virtucon II
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