Q1. The following information is provided for Blossom Company and Ayayai Corp.:
(in $ millions) Blossom Company Ayayai Corp.
Net income 2017 $120 $350
Net sales 2017 1200 4500
Total assets 12/31/15 1000 2000
Total assets 12/31/16 1050 3000
Total assets 12/31/17 1150 4000
What is Ayayai's return on assets (rounded) for 2017?
10.0%
11.7%
11.3%
8.8%
Q2. The 2017 financial statements of Cullumber Company contain the following selected data (in millions).
Current assets $89
Total assets 143
Current liabilities 31
Total liabilities 73
Cash 6
Interest expense 7
Income taxes 9
Net income 11
The debt to assets ratio (rounded) is
51.0%.
7.2 times.
34.8%.
1.96%.