Following are selected income statement and balance sheet data for companies in different industries.

Required

a. Compute the following rations for each company.

- Gross profit/Sales

- Net income/Sales

- Net income/Stockholders' equity

- Liabilities/Stockholders' equity

b. Comment on any differences among the companies' gross profit to sales ratios and net income as a percentage of sales. Do differences in the companies' business models explain the differences observed?

c. Which company reports the highest ratio of net income to equity? Suggest one or more reasons for this result.

d. Which company has financed itself with the highest percentage of liabilities to equity? Suggest one or more reasons why this company can take on such debt levels.

Cost of ($ millions) Sales Goods Sold Gross Profit Net Income Target Corp. (TGT) $ 73,301 $ 50,568 $ 22,733 $ Nike, Inc. (NKE) $ 25,313 $ 14,279 $ 11,034 $ Harley-Davidson (HOG) $ 5,581 $ Cisco Systems (CSCO) $ 48,607 $ 3,222 $ 2,359 $ 19,167 $ 29,440 $ Liabilities Assets 2,999 $ 48,163 $ 2,485 $ 17,584 $ 624 $ 9,171 $ 9,983 $ 101,191 $ Stockholders' Equity 31,605 $ 6,428 $ 6,613 $ 42,063 $ 16,558 11,156 2,558 59,128