Exercise 9-15 Suppose during 2017 that Federal Express reported the following in

Question

Exercise 9-15

Suppose during 2017 that Federal Express reported the following information (in millions): net sales of $34,700 and net income of $94. Its balance sheet also showed total assets at the beginning of the year of $24,640 and total assets at the end of the year of $23,300.

Calculate the asset turnover and return on assets. (Round answers to 2 decimal places, e.g. 6.25 or 17.54%.)

CSecure htt edugen.wicyplus.com/edugeryltymainun Return ta Rlxkboard l, Accounting, Ge h9 Part 2 H supposc curing 2017 tat Federal Express raported the following informaticn in millions : net sales of$34,700 and net incomc of ?91. Its balance sneet also showed total assets at the beginning cf the Year cf S24.00 ?nd total assets at the end of the year of 2,3on Calculate the dsset turnover dnd?turn on dssets. (Round."15?? ers ,o 2 devirmi,pelces, e.y. 6.25 or 17.51%-) Assat turmaver Reiurn an a Review Score Reviw Results hy Sthady Obiectivue Question Attempts: D ot S used save ox LATEK O lype hene to search

Explanation / Answer

Asset turnover = Net Sales / [(Beginning Assets + Ending Assets) / 2]

= $34,700 / [($24,640 + $23,300) / 2]

= 1.45

Return on assets = Net income / [(Beginning Assets + Ending Assets) / 2]

= $94 / [($24,640 + $23,300) / 2]

= 0.39%

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