Horngren's Financial & Managerial Accounting (5th Edition)
5th Edition
ISBN: 9780133866292
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem 9.27E
Computing asset turnover ratio
Snap Dragon Photo reported the following figures on its December 31, 2016, income statement and
| Net sales | $440,000 | |
| Dec.31, 2016 | Dec. 31, 2015 | |
| Cash | $ 26,000 | $ 28,000 |
| 56,000 | 58,000 | |
| Merchandise Inventory | 79,000 | 76,000 |
| Prepaid Expenses | 8,000 | 14,000 |
| Property, plant, and equipment, net | 180,000 | 11,000 |
Compute the asset turnover ratio for 2016.
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The following information relates to Mazy's Inc.
$ millions
Total Assets
Revenue
Net Income
Fiscal Year 2015
$47,325
$62,282
$2,461
Fiscal Year 2014
46,926
Mazy's fiscal years for 2015 and 2014 end on January 30, 2016, and January 31, 2015, respectively.
Note: Carry all decimals in calculations; enter the answers rounded to two digits after the decimal; for example, enter 1.42 for 1.424, or 1.43 for 1.425.
a. Compute the asset turnover ratio for fiscal year 2015.
Answer
b. Compute the return on assets ratio for fiscal year 2015.
Answer
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The following information relates to Nicke Inc.
Total
Fixed
Total
Net
$ millions
Assets
Assets Revenue Income
Fiscal Year 2016 $10,560 $64,188 $97,128 $11,280
Fiscal Year 2015
28,002 200,852
91,803
9,819
Fiscal Year 2014
8,502 55,782
Nicke's fiscal years 2016, 2015, and 2014, end on May 31, 2016, 2015, and 2014, respectively.
Required
a. Compute the asset turnover ratio for fiscal years 2016 and 2015.
b. Compute the return on assets ratio for fiscal years 2016 and 2015.
c. Compute the fixed asset turnover ratio for fiscal years 2016 and 2015.
Note: Do not round until your final answers. Round final answers to two decimal places.
Ratio
2016
2015
a. Asset turnover
0.73 v
0.72 v
b. Return on assets
8.53 x
7.65 x
c. Fixed asset turnover
5.04 v
5.03 v
Chapter 9 Solutions
Horngren's Financial & Managerial Accounting (5th Edition)
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