Cyberdyne Systems and Virtucon are competitors focusing on the latest technologies. Selected financial data provided below. ($ in millions) Net sales Net Income Operating cash flows Total assets, beginning Total assets, ending Cyberdyne $47,905 12,455 16,065 66,905 68,905 Virtucon $8,484 1,782 1,900 17,984 17,684 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? (For all requirements, round your answers to 1 decimal place. Enter your answers in millions (l.e.. $10,100,000 should be entered as 10.1).)
Cyberdyne Systems and Virtucon are competitors focusing on the latest technologies. Selected financial data provided below. ($ in millions) Net sales Net Income Operating cash flows Total assets, beginning Total assets, ending Cyberdyne $47,905 12,455 16,065 66,905 68,905 Virtucon $8,484 1,782 1,900 17,984 17,684 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? (For all requirements, round your answers to 1 decimal place. Enter your answers in millions (l.e.. $10,100,000 should be entered as 10.1).)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 46E
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