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Two competitors in the construction supply industry report the following selected financial data: Company A Company D Sales $46,670 $ 66,976 Net income 1,833 2,650

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Two competitors in the construction supply industry report the following selected financial data: Company A Company D Sales $46,670 $ 66,976 Net income 1,833 2,650 Operating cash flows 3,994 5,175 Total assets, beginning 33,455 40,577 Total assets, ending 32,225 41,414 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 Company B % Asset Turnover times Company A Company B times 2-a. Which company has the better cash flow to sales ratio? Company B O Company A 2-b. Which company has the better asset turnover ratio? O Company A O Company B

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