Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company. To Calculate: The asset turnover ratio ofCompany K.

Question

The following information is available from the annual reports of Blossom Company and Crane Company. (Amounts in millions) Blossom Crane Net Income $1,824 $2,413 Sales 43,035 64,239 Total Assets (average) 40,242 68,704 Based on the preceding information, compute the following values for each company: (Round asset turnover ratio to 2 decimal places, e.g. 15.25 and return on assets to 1 decimal place, e.g. 15.2%.) BlossomCrane1. Asset turnover ratio enter the asset turnover rounded to 1 decimal placetimesenter the asset turnover rounded to 1 decimal placetimes2. Return on assets enter the return on assets in percentages rounded to 2 decimal places%enter the return on assets in percentages rounded to 2 decimal places%

Answer 1

Question

Chapter 5, Problem 3ADM

A.

To determine

Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities, profitability, and overall performance of a company.

To Calculate: The asset turnover ratio ofCompany K.

B.

To determine

To Explain: The reason that why Company T’s asset turnover ratio is lower than Company K’s.

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The following information is available from the annual reports of Blossom Company and Crane Company. (Amounts in millions) Blossom Crane Net Income $1,824 $2,413 Sales 43,035 64,239 Total Assets (average) 40,242 68,704 Based on the preceding information, compute the following values for each company: (Round asset turnover ratio to 2 decimal places, e.g. 15.25 and return on assets to 1 decimal place, e.g. 15.2%.) BlossomCrane1. Asset turnover ratio enter the asset turnover rounded to 1 decimal placetimesenter the asset turnover rounded to 1 decimal placetimes2. Return on assets enter the return on assets in percentages rounded to 2 decimal places%enter the return on assets in percentages rounded to 2 decimal places%

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