Net sales, net income, total assets, and total common stockholders' equity information lor the year 2003 is
Question:
Net sales, net income, total assets, and total common stockholders' equity information lor the year 2003 is available for the following three companies.
Instructions
(a) Compute the following relationships lor each company.
(1) Debt to total assets ratio.
(2) Return on sales (profil margin percentage I.
(3) Return on assets.
(4) Return on common stockholders' equity.
(b) What reasons might there be for the differing relationships among these three companies?
In your answer, consider the different kinds of industries these companies represent. Do any similarities or differences in the type of business help account for the differences you see?
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Related Book For
Financial Accounting Text Only
ISBN: 9780006575405
5th Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel
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