3. Cyclone Inc. reported the following figures from their financial statements f

Question

3. Cyclone Inc. reported the following figures from their financial statements for years 2009 through 2011: the 2002 $717.422 $1.110.178 $591.786 2011 2010 Net revenues Gross profit Net income (net loss) Cash flow from operations Accounts receivable 560.421 960,434 48,605 70,776 47.811 (92.788) 106,850 68.648 509,707 204,496 90,561 Calculate the days' sales in receivables for 2011 Using the following compute the return on assets ratio for 2016. Hayes, Inc. Net Income 2016 Total Assets 12/31/16 Total Assets 12/31/15 Net Sales 2016 123,000 2,243,000 1,880,000 2,135,000 4. Return on Assets_

Explanation / Answer

Accounts receivable turnover = Net revenues / Accounts receivable

= 717,422 / 68,648

= 10.45

Day's sales in receivables = 365 / Accounts receivable turnover

= 365 / 10.45

= 34.928

= 35 days (rounded off)

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Average total assets = (2,243,000+1,880,000) / 2

= 2,061,500

Return on Assets = Net Income / Average total assets

= 123,000 / 2,061,500

= 5.97%

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