Exhibit 6.11 shows five items from the financial statements for three companies for a recent year.

a Compute the income to sales (or income to operating revenues) ratio for each company. Which company seems to be the most successful according to this ratio?
b How many dollars of sales on average does each of the companies make for each dollar's worth of average assets held during the year?
c Compute the rate of return on assets for each company. Which company seems to be the most successful according to this ratio?
d Compute the rate of return on common shareholders' equity for each company. Which company seems to be the most successful according to this ratio?
e The three companies are American Telephone \& Telegraph, Safeway Stores, and Sears, Roebuck and Company. (Dollar amounts shown are actually in thousands.) Which of the companies corresponds to A, B, and C? What clues did you use in reaching your conclusion?

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EXHIBIT 6.11 Comparison of Operations and Investment (Problem 32) For Year Operating Revenues. Company A $28,947,200 Company B Company C $13,639,900 $9,716,900 Income Before Interest and Dividends" 4,295,800 824,600 156,400 Net Income to Common Shareholders 2,915,800 522,600 148,600 Average During Year Total Assets..... Common Shareholders' Equity Net Income + Interest Charges x (1 - Tax Rate) b Net Income Preferred Stock Dividends 77,107,200 10,885,000 1,532,400 29,769,200 5,118,800 743,830