Return on Assets Ratio and Asset Turnover Ratio United Systems reported the following financial data (in millions) in its annual report: Previous Year Current Year Net Income $21,500 $16,134 Net Sales 49,540 52,250 Total Assets 68,734 78,128 If the company’s total assets are $65,676 at the beginning of the previous year, calculate the company’s: (a) return on assets (round answers to one decimal place - ex: 10.7%) (b) asset turnover for both years (round answers to two decimal places) Previous Year Current Year a. Return on Assets Ratio Answer Answer b. Asset Turnover Ratio Answer Answer
Return on Assets Ratio and Asset Turnover Ratio United Systems reported the following financial data (in millions) in its annual report: Previous Year Current Year Net Income $21,500 $16,134 Net Sales 49,540 52,250 Total Assets 68,734 78,128 If the company’s total assets are $65,676 at the beginning of the previous year, calculate the company’s: (a) return on assets (round answers to one decimal place - ex: 10.7%) (b) asset turnover for both years (round answers to two decimal places) Previous Year Current Year a. Return on Assets Ratio Answer Answer b. Asset Turnover Ratio Answer Answer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Return on Assets Ratio and Asset Turnover Ratio
United Systems reported the following financial data (in millions) in its annual report:
| Previous Year | Current Year | |
|---|---|---|
| Net Income | $21,500 | $16,134 |
| Net Sales | 49,540 | 52,250 |
| Total Assets | 68,734 | 78,128 |
If the company’s total assets are $65,676 at the beginning of the previous year, calculate the company’s:
(a) return on assets (round answers to one decimal place - ex: 10.7%)
(b) asset turnover for both years (round answers to two decimal places)
| Previous Year | Current Year | ||
|---|---|---|---|
| a. | Return on Assets Ratio | Answer | Answer |
| b. | Asset Turnover Ratio | Answer | Answer |
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