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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 $ 46,320 1,743 3,884 34,005 32,225 Company B $ 65,576 2,640 5,205 40,127 41,364 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.) Cash Return on Assets Company A Company B Cash Flow to Sales Company A Company B Asset Turnover times Company A Cash Flow to Sales Company A Company B company to E Asset Turnover Company A times Company B imes times 2-a. Which company has the better cash flow to sales ratio? Company A Company B 2-b. Which company has the better asset turnover ratio? Company B Company A
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