Selected financial data of two intense competitors in a recent year are presented here (in millions). 

Required

(a) For each entity, calculate the following:

1. Current ratio.

2. Receivables turnover.

3. Average collection period.

4. Inventory turnover.

5. Average days in inventory.

6. Profit margin.

7. Asset turnover.

8. Return on assets.

9. Return on ordinary shareholders’ equity.

10. Debt to total assets ratio.

11. Times interest earned.

12. Current cash debt coverage.

13. Cash return on sales ratio.

14. Cash debt coverage.

(b) Compare the liquidity, solvency and profitability of the two entities. 

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Net sales Cost of sales Selling and administrative expenses Finance expense Gain on sale of equipment Income tax expense Profit Current assets Property, plant and equipment (net) Total assets Current liabilities Non-current liabilities Total equity Total liabilities and equity Eastco Ltd Statement of profit or loss data $ 40000 (32 000) (7200) (600) 800 (300) 700 Westco Ltd $ 5500 8 200 6300 $ 20 000 $ 82 000 (65 000) (13 000) (1 000) 200 (1 200) $ 2000 Statement of financial position data (end-of-year) $ 11000 $ 11 000 9000 17481 $ 20000 $ 28481 $ 9000 11 000 8481 $ 28 481