1 Aki Company reported a 5 EBIT to sales ratio, a 10 rate of return on total assets, and 2billion in average total assets Compute (a) EBIT, (b) Total sales, (c) Total asset turnover 2 Dublin Corporation reported 1,000 million of sales, 56 million of EBIT, and a total asset turnover of four times Co...

1 a 2 billion 10 200 million EBIT b 200 million 5 40 billion total sal ...

1. Aki Company reported a 5% EBIT-to-sales ratio, a 10% rate of return on total assets, and...

Question:

1. Aki Company reported a 5% EBIT-to-sales ratio, a 10% rate of return on total assets, and ¥2 billion in average total assets. Compute
(a) EBIT,
(b) Total sales,
(c) Total
2. Dublin reported €1,000 million of sales, €56 million of EBIT, and a total of four times. Compute
(a) Average total assets,
(b) The EBIT-to-sales ratio,
(c) The rate of return on total assets.
3. Compare the two companies based on the ratios computed.

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...