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Suppose during 2022 that Federal Express reported the following information (in millions): net sales of $34,750...

Suppose during 2022 that Federal Express reported the following information (in millions): net sales of $34,750 and net income of $95. Its balance sheet also showed total assets at the beginning of the year of $24,650 and total assets at the end of the year of $23,300.

Calculate the asset turnover and return on assets. (Round asset turnover to 2 decimal places, e.g. 6.25 and return on assets

Calculate the asset turnover and return on assets. (Round asset turnover to 2 decimal places, e.g. 6.25 and return on assets to 1 decimal place, e.g. 17.5%.) Asset turnover times Return on assets
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Answer #1
Asset Turnover =   Net Sales / Average Total Assets
                               = 34750 / 23975
                               = 1.45
Average Total Assets = Assets at the Beginning of year + Assets at the closing of year
(24,650+23,300) / 2 = $23,975
Return on assets = Net Income / Average Total Assets
                                  = 95/23975
                                 = 0.0040
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