Question

Question 4 View Policies Show Attempt History Current Attempt in Progress X Your answer is incorrect. Suppose in its 2022 annual report that McDonald's Corporation reports beginning total assets of $29.00 billion, ending total assets of $31.00 billon, net sales of $21.60 billion, and net income of $4.59 billion (a) Compute McDonald's return on assets. (Round return on assets to 2 decimal places, eg 5.12 % ) McDonald's return on assets 15 % (b) Compute McDonald's asset turnover (Round asset turnover to 2 decimal places, eg 5.12) McDonald's asset turnover 075 times e Textbook and Media Attempts: 3 of 4 use Send to Gradebook

Answer 1

(a) Compute McDonald's return on assets. McDonald's return on assets 15.30% |(b) Compute McDonald's asset turnover. McDonald's asset turnover 0.72 times Beginning Total Assets Ending Total Assets Net Income Net Sales = $29.00 billion = $31.00 billion = $4.59 billion = $21.60 billion (a) Average Total Assets Average Total Assets = Average Total Assets = Average Total Assets = = (Beginning Total Assets + Ending Total Assets)/2 |($29.00 billion + $31.00 billion)/2 $30.00 billion (b) Return on Assets Return on Assets Return on Assets Return on Assets = Net Income / Average Total Assets = $4.59 / $30.00 = 15.30% (c) Assets Turnover Assets Turnover Assets Turnover Assets Turnover = Net Sales Average Total Assets = $21.60 / $30.00 = 0.72 times