Suppose during 2022 that Federal Express reported the following information (in millions): net sales of $34,000 and net income of $80. Its balance sheet also showed total assets at the beginning of the year of $24,500 and total assets at the end of the year of $23,300.Calculate the asset turnover and return on assets. (Round asset turnover to 2 decimal places, e.g. 6.25 and return on assets to 1 decimal place, e.g. 17.5%.)Asset turnover enter the asset turnover rounded to 2 decimal places timesReturn on assets enter the return on assets in percentages rounded to 2 decimal places%

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Asked Dec 5, 2019
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Suppose during 2022 that Federal Express reported the following information (in millions): net sales of $34,000 and net income of $80. Its balance sheet also showed total assets at the beginning of the year of $24,500 and total assets at the end of the year of $23,300.

Calculate the asset turnover and return on assets. (Round asset turnover to 2 decimal places, e.g. 6.25 and return on assets to 1 decimal place, e.g. 17.5%.)

Asset turnover  
enter the asset turnover rounded to 2 decimal places
 times
Return on assets  
enter the return on assets in percentages rounded to 2 decimal places
%
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Expert Answer

Step 1

Calculate the asset turnover.

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Net sales Asset turnover Average assets $34,000 $24, 500 + $23,300 2 $34,000 $23,900 =1.42 times

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Step 2

Calculate the return on as...

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Net income Return on assets : -×100 Average assets $80 |x100 $24, 500+ $23,300 2 $80 -x100 $23,900 = 0.33%

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