ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS 621 PRACTICE CASE Analysis and interpretation of financial statements (LG 5) Assume that selected information from the 2011 annual reports of two major retailers, Ben Mart and Sue Mart are shown below. All numbers are in millions. Income Statement Net sales Cost of goods sold Gross margin Operating expenses Interest expense Income before taxes Income taxes (refund) Net income (loss) BEN Mart SUE Mart $ 37,028.0 $193,295.0 $ 7,461.0 31,679.0 $ (378.0) 9,987.0 Balance Sheet Current assets: Cash and cash equivalents Trade accounts receivable (net) Inventories Other current assets $ 201.0 2,054.0 1,768.0 21,442.0 ,200.0 5,412.0 Total current assets 7,624.0 26,555.0 Noncurrent assets Total assets Current liabilities Long-term liabilities S 3,799 28,949.0 Total liabilities $ 7,660.0 46,787.0 Total owners' equity Total liabilities and owners' equity REQUIRED 1. Compute the following ratios rounding computations to the nearest tenth of a percent. a. Current ratio for the end of fiscal 2011. b. Quick ratio for the end of fiscal 2011. e. Accounts receivable turnover ratio for 2011. (Accounts receivable at the end of fiscal 2010 Ben Mart $1,300.0, Sue Mart S1,341.0) d. Inventory turnover ratio for 2011. (Inventory at the end of fiscal 2010: Ben Mart $7,101.0 Sue Mart $19,793.0) e. Debt ratio for the end of fiscal 2011. f. Times interest earned for 2011. g. Gross profit margin for fiscal 2011. h. Profit margin for fiscal 2011. i. Total asset turnover for fiscal 2011. (Total assets at the end of fiscal 2010: Ben Mart $15,140.0, Sue Mart $70,349.0) j. Return on total assets for fiscal 2011. recommend as an investment? Briefly explain. 2. Based on the ratios you computed in requirement 1, which of the two companies would you