Comparative financial statement data for Fisher Corporation and Gisco Corpo ration, two competitors, appear below. All balance sheet data are as of December 31, 2001, and December 31, 2000.

Additional information: Cash provided by operations for 2001 was $162,594 for Fisher and $24,211 for Gisco.
Instructions

(a) Comment on the relative profitability of the companies by computing the return on assets ratios and the profit margin ratios for both companies.

(b) Comment on the relative liquidity of the companies by computing working capital, the current ratios, and the current cash debt coverage ratios for both companies.

(c) Comment on the relative solvency of the companies by computing the debt to total assets ratio and the cash debt coverage ratio for each.

Transcribed Image Text:

Fisher Corporation 2001 Net sales $1,949,035 Gisco Corporation 2000 2001 2000 $539,038 Cost of goods sold 1,280,490 338,006 Operating expenses 302,275 79,000 Interest expense 6,800 1,252 Income tax expense 47,840 7,740 Current assets 425,975 $412,410 190,336 $160,467 Plant assets (net) 521,310 500,000 139,728 125,812 Current liabilities. 66,325 75,815 35,348 30,281 Long-term liabilities 108,500 90,000 29,620 25,000