Question: 1 Aki Company reported a 5 EBIT to sales ratio a 10

1. Aki Company reported a 5% EBIT-to-sales ratio, a 10% rate of return on total assets, and ¥2 billion in average total assets. Compute
(a) EBIT,
(b) Total sales,
(c) Total asset turnover.
2. Dublin Corporation reported €1,000 million of sales, €56 million of EBIT, and a total asset turnover of four times. Compute
(a) Average total assets,
(b) The EBIT-to-sales ratio,
(c) The rate of return on total assets.
3. Compare the two companies based on the ratios computed.

  • CreatedFebruary 20, 2015
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