Two competitors in the construction supply industry report the following selected financial data: Company A Company $ 46,770 1,69 3,994 S,065 33,95s 32,475 S 66,776 2,810 Sales Net incone Operating cash flows Total assets, beginning Total assets, ending 40,27 41,264 1. Calculate the cash return on essets, cesh 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 D Asset Turnover Company A Company B imes 2a. Which company has the better cash flow to sales retio? O Company B O Company A 2-b. Which company has the better asset turmover ratio? O Company A O Company B

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 27BEB: Roberts Company provided the following partial comparative balance sheets and the income statement...
icon
Related questions
Question
Two competitors in the construction supply industry report the following selected financial data:
Sales
Net incone
Operating cash flows
Tatal assets, beginning
Total assets, ending
Сопрany A
$ 46,770
1,693
Company в
$ 66,776
2,810
5,065
3,994
33,955
32,475
40, 827
41,264
1. Colculate the cosh return on essets, cssh flow to soles retio, and esset turnover ratio for each company. (Do not round Intermedlate
calculations. Round your final answers to 2 decimal places.)
Caeh Return on
Asseta
Campany A
%
Company B
%
Caah Flow to Sales
Campany A
Company B
%
Aseet Turnover
Campany A
times
Company B
times
2-a. Which company has the better cash flow to sales ratio?
O Company B
O Company A
2-b. Which company has the better asset turnover ratio?
O Company A
O Company B
Transcribed Image Text:Two competitors in the construction supply industry report the following selected financial data: Sales Net incone Operating cash flows Tatal assets, beginning Total assets, ending Сопрany A $ 46,770 1,693 Company в $ 66,776 2,810 5,065 3,994 33,955 32,475 40, 827 41,264 1. Colculate the cosh return on essets, cssh flow to soles retio, and esset turnover ratio for each company. (Do not round Intermedlate calculations. Round your final answers to 2 decimal places.) Caeh Return on Asseta Campany A % Company B % Caah Flow to Sales Campany A Company B % Aseet Turnover Campany A times Company B times 2-a. Which company has the better cash flow to sales ratio? O Company B O Company A 2-b. Which company has the better asset turnover ratio? O Company A O Company B
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Cash Flow Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Entrepreneurial Finance
Entrepreneurial Finance
Finance
ISBN:
9781337635653
Author:
Leach
Publisher:
Cengage