Google and Yahoo are close competitors in the Internet search engine business. O

Question

Google and Yahoo are close competitors in the Internet search engine business. One of Google’s top executives, Marissa Mayer, left Google in 2012 to become Yahoo’s CEO. Selected financial data for Google and Yahoo are as follows: (Enter your answers in millions rounded to 1 decimal place.) ($ in millions) Google Yahoo Net sales $ 55,905 $ 11,284 Net income 13,417 2,370 Operating cash flows 17,265 2,482 Total assets, beginning 74,905 20,784 Total assets, ending 76,905 20,484

1.Calculate the return on assets for both companies

2.Calculate the cash return on assets for both companies.

3.Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.

1.Calculate the return on assets for both companies

2.Calculate the cash return on assets for both companies.

3.Calculate the cash flow to sales ratio and the asset turnover ratio for both companies.

Explanation / Answer

Dear student there is nothing mentioned for rounding off. I have rounded upto 3 decimals.

Google Yahoo Return On Assets 17.68 11.49 % Net Income/Average Total assets 13417/((74905+76905)/2)*100 2370/((20784+20484)/2)*100 Cash Returns on Assets 0.2275 0.1203 Cash Flow from Operations/Average Total assets 22.75 12.03 % 17265/((74905+76905)/2) 2482/((20784+20484)/2) Cash Flow to sales ratio 0.309 0.220 Cash Flow from Opeartions/Net sales 17265/55905 2482/11284 Asset Turnover ratio 0.737 0.547 Net sales/Average Total Assets 55905/((74905+76905)/2) 11284/((20784+20484)/2)

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