FINANCIAL AND MANAGERIAL ACCOUNTING
9th Edition
ISBN: 9781264899180
Author: Wild
Publisher: MCG
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Chapter 12, Problem 20QS
1.
To determine
Introduction: Cash flow on total assets is an efficiency ratio that rates actual
To compute: The cash flow on total assets.
2.
To determine
Introduction: Cash flow on total assets is an efficiency ratio that rates actual cash flows to the company assets without being affected by income recognition or income measurements. The cash flow on total assets ratio is calculated by dividing cash flows from operations by the average total assets.
To explain: The comparison between two competitors.
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Cyberdyne Systems and Virtucon are competitors focusing on the latest technologies. Selected financial data is provided below.
($ in millions)
Net sales
Cyberdyne
$43,905
10,537
Net income
15,465
62,905
64,905
Operating cash flows
Total assets, beginning
Total assets, ending
Required:
1. Calculate the return on assets for both companies.
2. Calculate the cash return on assets for both companies.
3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.
4. Which company has the more favorable ratios?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Virtucon
$7,084
1,488
1,600
16,584
16,284
Cyberdyne
Calculate the cash return on assets for both companies.
Note: Round your answers to 1 decimal place. Enter your answers in millions (i.e., $10,100,000 should be entered as 10.1).
Virtucon
Required 3 Required 4
($ in millions)
Cash Return on Assets
Numerator + Denominator
Amounts
0
0
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Mazaya Company has the following information available: Net Income R.O. 37,500; Cash Provided by Operations R.O.
46,500; Cash Sales R.O. 97,500; Capital Expenditures R.O.16,500; Dividends Paid R.O. 4,500. What is Mazaya's free cash
flow?
Revo Company reports average total assets of $200,000, revenue of $153,000, net income of $51,000, and cash flow from operations
of $58,000.
(1) Compute its cash flow on total assets.
(2) Is Revo's cash flow on total assets better than the 18% for its competitor, Epix Company?
(1) Cash flow on total assets
(2) Is Revo's cash flow on total assets better than the 18% for its competitor, Epix Company?
%
Chapter 12 Solutions
FINANCIAL AND MANAGERIAL ACCOUNTING
Ch. 12 - Prob. 1QSCh. 12 - Prob. 2QSCh. 12 - Prob. 3QSCh. 12 - Prob. 4QSCh. 12 - Prob. 5QSCh. 12 - Prob. 6QSCh. 12 - Prob. 7QSCh. 12 - Prob. 8QSCh. 12 - Prob. 9QSCh. 12 - Prob. 10QS
Ch. 12 - Prob. 11QSCh. 12 - Prob. 12QSCh. 12 - Prob. 13QSCh. 12 - Prob. 14QSCh. 12 - Prob. 15QSCh. 12 - Prob. 16QSCh. 12 - Prob. 17QSCh. 12 - Prob. 18QSCh. 12 - Prob. 19QSCh. 12 - Prob. 20QSCh. 12 - Prob. 21QSCh. 12 - Prob. 22QSCh. 12 - Prob. 23QSCh. 12 - Prob. 24QSCh. 12 - Prob. 25QSCh. 12 - Prob. 26QSCh. 12 - Prob. 27QSCh. 12 - Prob. 28QSCh. 12 - Prob. 1ECh. 12 - Prob. 2ECh. 12 - Prob. 3ECh. 12 - Prob. 4ECh. 12 - Prob. 5ECh. 12 - Prob. 6ECh. 12 - Prob. 7ECh. 12 - Prob. 8ECh. 12 - Prob. 9ECh. 12 - Prob. 10ECh. 12 - Prob. 11ECh. 12 - Prob. 12ECh. 12 - Prob. 13ECh. 12 - Prob. 14ECh. 12 - Prob. 15ECh. 12 - Prob. 16ECh. 12 - Prob. 17ECh. 12 - Prob. 18ECh. 12 - Prob. 19ECh. 12 - Prob. 20ECh. 12 - Prob. 21ECh. 12 - Prob. 22ECh. 12 - Prob. 1PSACh. 12 - Prob. 2PSACh. 12 - Prob. 3PSACh. 12 - Prob. 4PSACh. 12 - Prob. 5PSACh. 12 - Prob. 6PSACh. 12 - Prob. 7PSACh. 12 - Prob. 8PSACh. 12 - Prob. 1PSBCh. 12 - Prob. 2PSBCh. 12 - Prob. 3PSBCh. 12 - Prob. 4PSBCh. 12 - Prob. 5PSBCh. 12 - Prob. 6PSBCh. 12 - Prob. 7PSBCh. 12 - Prob. 8PSBCh. 12 - Prob. 12SPCh. 12 - Prob. 1.1AACh. 12 - Prob. 1.2AACh. 12 - Prob. 1.3AACh. 12 - Prob. 1.4AACh. 12 - Prob. 2.1AACh. 12 - Prob. 2.2AACh. 12 - Prob. 2.3AACh. 12 - Prob. 3.1AACh. 12 - Prob. 3.2AACh. 12 - Prob. 3.3AACh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - Prob. 10DQCh. 12 - Prob. 11DQCh. 12 - Prob. 1BTNCh. 12 - Prob. 2BTNCh. 12 - Prob. 3BTNCh. 12 - Prob. 5BTN
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