Question
Cyberdyne Systems and Virtucon are competitors focusing on the latest technologies. Selected financial data is provided below. (Round your answers to 1 decimal place. Enter
Cyberdyne Systems and Virtucon are competitors focusing on the latest technologies. Selected financial data is provided below. (Round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).)
($ in millions) | Cyberdyne | Virtucon | ||||
Net sales | $ | 61,905 | $ | 13,384 | ||
Net income | 14,857 | 2,811 | ||||
Operating cash flows | 18,165 | 3,000 | ||||
Total assets, beginning | 80,905 | 22,884 | ||||
Total assets, ending | 82,905 | 22,584 | ||||
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?
multiple choice
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Cyberdyne Systems Correct
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Virtucon
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