Use the following selected balance sheet and income statement information for Ga

Question

Use the following selected balance sheet and income statement information for Gardening Supply Co. (in millions) to compute the return on assets to the nearest hundredth. Tax rate on Gross proft on sales Average total assets $180,300 Sales operating profit $565,210 Net income $39,150 $310,200 35% Select one: A. 17.30% B. 21.71% C. 5.52% D. 5.15% X QUESTION 2 IncorrectMark 0.00 out of 1.00 P Flag question The operating-cash-flow-to-current-liabilities ratio is computed by dividing a firm's a net cash flow from operating activities by: Select one: A. Current liabilities at the end of the period x B. Current liabilities at the beginning of the period C. Total liabilities at the middle of the period D. Average current liabilities for the period E. None of the above ·

Explanation / Answer

Return on assets = Net income / Average total assets

= 39,150 / 180,300

= 21.71%

The answer is B.

----------------------------------------------------------

Operating cash flow to current liabilities ratio = Net cash flow from operating activities / Average current liabilities

The answer is D.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.