Computing Asset Ratios The following information from Ike Inc. is from a recent Form 10-K, listed in chronological order. Total Total Net $ millions Fixed Assets Assets Revenue Income Fiscal Year 1 $6,235 $40,907 Fiscal Year 2 6,624 47,513 $67,322 $7,201 Fiscal Year 3 7,744 47,071 71,227 8,272 Required a. Compute the asset turnover ratio for fiscal years 2 and 3. b. Compute the return on assets ratio for fiscal years 2 and 3. c. Compute the fixed asset turnover ratio for fiscal years 2 and 3. Ratio a. Asset turnover $ b. Return on assets $ c. Fixed asset turnover $ Year 2 Numerator Denominator / $ / $ / $ Numerator $ $ $ Year 3 Denominator / $ / $ / $
Computing Asset Ratios The following information from Ike Inc. is from a recent Form 10-K, listed in chronological order. Total Total Net $ millions Fixed Assets Assets Revenue Income Fiscal Year 1 $6,235 $40,907 Fiscal Year 2 6,624 47,513 $67,322 $7,201 Fiscal Year 3 7,744 47,071 71,227 8,272 Required a. Compute the asset turnover ratio for fiscal years 2 and 3. b. Compute the return on assets ratio for fiscal years 2 and 3. c. Compute the fixed asset turnover ratio for fiscal years 2 and 3. Ratio a. Asset turnover $ b. Return on assets $ c. Fixed asset turnover $ Year 2 Numerator Denominator / $ / $ / $ Numerator $ $ $ Year 3 Denominator / $ / $ / $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Computing Asset Ratios
The following information from Ike Inc. is from a recent Form 10-K, listed in chronological order.
Total
Total
Net
$ millions Fixed Assets Assets Revenue Income
Fiscal Year 1
$6,235 $40,907
Fiscal Year 2
6,624 47,513 $67,322 $7,201
Fiscal Year 3
7,744 47,071 71,227
8,272
Required
a. Compute the asset turnover ratio for fiscal years 2 and 3.
b. Compute the return on assets ratio for fiscal years 2 and 3.
c. Compute the fixed asset turnover ratio for fiscal years 2 and 3.
Ratio
a. Asset turnover
$
b. Return on assets
$
c. Fixed asset turnover $
Year 2
Numerator
Denominator
/ $
/ $
/ $
Numerator
$
$
$
Year 3
Denominator
/ $
/ $
/ $
=
=
=
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