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Two competitors in the construction supply industry report the following selected financial data: Sales Net income Operating cash flows Total assets, beginning Total assets, ending
Two competitors in the construction supply industry report the following selected financial data: Sales Net income Operating cash flows Total assets, beginning Total assets, ending Company A $ 46,370 1,823 4,014 33,955 31,825 Company B $ 66,776 2,630 5,135 40,577 41,914 1. Calculate the cash return on assets, cash flow to sales ratio, and asset turnover ratio for each company. (Do not round intermediate calculations. Round your final answers to 2 decimal places.) w Cash Return on Assets 11.98% Company A Company B 12 50% Cash Flow to Sales 8.381 % Company A Company B 7,70 % 8.38% Company A Company B 7.70% 7 Asset Turnover times Company A Company B times 2-a. Which company has the better cash flow to sales ratio? O Company A O Company B 2-b. Which company has the better asset turnover ratio? O Company B O Company A
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