Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Two competitors in the construction supply industry report the following selected financial data: Sales Net Income Operating cash flows Total assets, beginning Total ansts, ending

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Two competitors in the construction supply industry report the following selected financial data: Sales Net Income Operating cash flows Total assets, beginning Total ansts, ending Company A Company $ 46,920 $ 67,076 1.803 2.750 3,964 5,155 33,155 40,427 32,225 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 Company A Company B Cash Flow to Sales % % Asut Tumover timos Company A Cash Flow to Salos % Company A Company B % Company A Company B Asset Turnover times times 2-a. Which company has the better cash flow to sales ratio? Company A O Company B 2-b. Which company has the better asset turnover ratio? Company A Company B A company reported net income of $220,000. Beginning balances in Accounts Receivable and Accounts Payable were $16,000 and $21,000 respectively, Ending balances in these accounts were $11,500 and $28,000, respectively. Assuming that all relevant information has been presented, what is the company's net cash flows from operating activities? Multiple Choice $220,000 $224,500 $208,500 $231.500 A company's financial statements include the following selected data (S in millions). Sales. $22,600: Net income $900; Beginning stockholders' equity, $3,520; Ending stockholders' equity, $4,140 Calculate the return on equity. (Round your answer to 1 decimal place.) Rotum on equity %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Investments Equities Futures And Options Volume 1

Authors: R. Venkata Subramani

1st Edition

047082431X, 978-0470824313

More Books

Students also viewed these Accounting questions

Question

How would you respond to each of the girls?

Answered: 1 week ago