Two competitors in the construction supply industry report the following selected financial data: Company A Company B Sales $ 46,570 $ 66,176 Net income 1,853 2,650 Operating cash flows 3,954 5,095 Total assets, beginning 33,355 40,527 Total assets, ending 31,675 42,114 1. Calculate the cash return on assets, cash flow to sales ratio, and asset turnover ratio for each company. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Cash return on assets: Company A:_______% Company B:_______% Cash flow to sales: Company A:_______% Company B:_______% Asset turnover: Company A:_______times Company B:_______times 2-a. Which company has the better cash flow to sales ratio? multiple choice 1 Company A Company B 2-b. Which company has the better asset turnover ratio? multiple choice 2 Company A Company B
Two competitors in the construction supply industry report the following selected financial data: Company A Company B Sales $ 46,570 $ 66,176 Net income 1,853 2,650 Operating cash flows 3,954 5,095 Total assets, beginning 33,355 40,527 Total assets, ending 31,675 42,114 1. Calculate the cash return on assets, cash flow to sales ratio, and asset turnover ratio for each company. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Cash return on assets: Company A:_______% Company B:_______% Cash flow to sales: Company A:_______% Company B:_______% Asset turnover: Company A:_______times Company B:_______times 2-a. Which company has the better cash flow to sales ratio? multiple choice 1 Company A Company B 2-b. Which company has the better asset turnover ratio? multiple choice 2 Company A Company B
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 51E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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Question
Two competitors in the construction supply industry report the following selected financial data:
| Company A | Company B | |||||
| Sales | $ | 46,570 | $ | 66,176 | ||
| Net income | 1,853 | 2,650 | ||||
| Operating cash flows | 3,954 | 5,095 | ||||
| Total assets, beginning | 33,355 | 40,527 | ||||
| Total assets, ending | 31,675 | 42,114 | ||||
1. Calculate the cash return on assets, cash flow to sales ratio, and asset turnover ratio for each company. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Cash return on assets:
Company A:_______%
Company B:_______%
Cash flow to sales:
Company A:_______%
Company B:_______%
Asset turnover:
Company A:_______times
Company B:_______times
2-a. Which company has the better cash flow to sales ratio?
multiple choice 1
-
Company A
-
Company B
2-b. Which company has the better asset turnover ratio?
multiple choice 2
-
Company A
-
Company B
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