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13 April, 02:35

Zoogle has the following selected data ($ in millions) : (Round your answers to 2 decimal place. Enter your answers in millions (i. e., $10,110,000 should be entered as 10.11).)

Net sales $ 23,451

Net income 6,500

Operating cash flows 9,314

Total assets, beginning 29,768

Total assets, ending 38,497

Required:

1. Calculate the return on assets. ($ in millions)

2. Calculate the cash return on assets. ($ in millions)

3. Calculate the cash flow to sales ratio and the asset turnover ratio. ($ in millions)

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Answers (1)
  1. 13 April, 04:37
    0
    Answer and Explanation:

    The computation is shown below:

    1. The Return on assets is

    Return on assets = (Net income) : (average of total assets)

    where,

    Net income is $6,500

    Average total assets = (Beginning total assets + ending total assets) : 2

    = ($29,768 + $38,497) : 2

    = $34,132.50

    Now put these values to the above formula

    So, the return on asset is

    = $6,500 : $34,132.50

    = 19.04

    2. Cash Return on assets is

    = Operating cash flows : Average total assets

    = $9,314 : $34,132.50

    = 27.29%

    3 Cash flow to sales ratio is

    = Operating Cash Flow : Net sales

    = 9,314 : $23,451

    = 39.72%

    And, Asset turnover ratio is

    = Net sales : Average total assets

    = $23,451 : $34,132.50

    = 0.68 times
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