Selected financial data for Bethlehem Steel and USX are presented here (in millions)

Instructions

(a) For each company, compute the following ratios.

(1) Current ratio.

(2) Receivables turnover.

(3) Average collection period

. (4) Inventory turnover.

(5) Days in inventory. (6) Profit margin.

(7) Asset turnover.

(8) Return on assets

. (9) Return on common stockholders' equity.

(10) Debt to total assets.

11) Times interest earned.

(12) Current cash debt coverage.

(13) Cash return on sales.

(14) Cash debt coverage.

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

Transcribed Image Text:

Income Statement Data for Year Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income Bethlehem Steel Corporation $4,477.8 USX Corporation $28,310 5,839 279 3,883.2 20,712 370.1 62.4 (18.0) 24.0 315 $ 120.1 (491) $ 674