Brief Exercise 9-10 Suppose in its 2017 annual report that McDonald\'s Corporati

Question

Brief Exercise 9-10 Suppose in its 2017 annual report that McDonald's Corporation reports beginning total assets of $29.85 billion, ending total assets of $31.55 billion, net sales of $22.25 billion, and net income of $4.00 billion (a) Compute McDonald's return on assets. (Round return on assets to 2 decimal places, eg, 5.12% McDonald's return on assets (b) Compute McDonald's asset turnover. (Round asset turnover to 2 decimal places, e.g. 5.12) McDonald's asset turnover times Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT INTERACTIVE TUTORIAL Question Attempts: 0 of 3 used SAVE FOR LATER SUBMIT ANSWER

Explanation / Answer

Average assets=(Beginning assets+Ending assets)/2

=(29.85+31.55)/2=$30.7billion

1.ROA=Net income/Average assets

=(4/30.7)=13.03%(Approx)

b.Asset turnover=sales/Average assets

=(22.25/30.7)=0.72 times(Approx)

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