Zoogle has the following selected data ($ in millions): Net sales .............. $24,651 Net income ............. 6,620

Question:

Zoogle has the following selected data ($ in millions):
Net sales .............. $24,651
Net income ............. 6,620
Operating cash flows ........ 9,326
Total assets, beginning ....... 41,768
Total assets, ending ........ 50,497

Required:
1. Calculate the return on assets.
2. Calculate the cash return on assets.
3. Calculate the cash flow to sales ratio and the ratio. Is Zoogle’s business strategy closer to Apple’s or to Dell’s in Illustrations 11–24 and 25?

Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.