Problem 11-5A Calculate and analyze ratios (LO11-6)

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	$	37,905		$	4,984
Net income		9,737			1,049
Operating cash flows		14,565			1,324
Total assets, beginning		57,851			14,928
Total assets, ending		72,574			14,783

Required:

1. Calculate the return on assets for both companies.

($ in millions)
Return on Assets
	Net income		Average total assets	=	Return on Assets
Cyberdyne	$9,737.0		$
Virtucon	$1,049.0		$

2. Calculate the cash return on assets for both companies.

($ in millions)
Cash Return on Assets
	Operating cash flows		Average total assets	=	Cash Return on Assets
Cyberdyne	$14,565.0		$		%
Virtucon	$1,324.0		$		%

($ in millions)
Cash Flow to Sales
	Operating cash flows		Net sales	=	Cash Flow to Sales
Cyberdyne	$14,565.0. (add, subtract, multiply or divide??)		$37,905		38.4%
Virtucon	$1,324.0		$4,984.0		26.6%
Asset Turnover
	Net sales. (add, subtract, multiply or divide??)		Average total assets	=	Asset Turnover
Cyberdyne	$37,905.0		$130,425.0		0.3	times
Virtucon	$4,984.0		$29,711.0		0.2	times