Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Confused on how I got these wrong. Followed the formulas that were provided and can't figure it out. Thank You! Presented below are condensed financial

Confused on how I got these wrong. Followed the formulas that were provided and can't figure it out. Thank You!

image text in transcribedimage text in transcribedimage text in transcribed

Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and distribution industry. ($ in millions, except per share amounts.) Balance Sheets Metropolitan Republic $ 195.3 441.7 483.4 147.6 $ 1,268.0 2,626.2 233.3 $ 4,127.5 $ 41.4 335.0 6.8 649.2 496.7 $ 1,529.1 2,155.2 485.1 $ 4,169.4 Assets Cash Accounts receivable (net) Short-term investments Inventory Prepaid expenses and other current assets Current assets Property, plant, and equipment (net) Intangibles and other assets Total assets Liabilities and Shareholders' Equity Accounts payable Short-term notes Accruals and other current liabilities Current liabilities Long-term debt Deferred tax liability Other long-term liabilities Total liabilities Common stock (par and additional paid-in capital) Retained earnings Less: Treasury stock Total liabilities and shareholders' equity Income Statements Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Net income per share $ 490.9 245.1 609.2 $ 1,345.2 554.6 401.6 126.0 $ 2,427.4 161.9 2,497.9 (959.7) $ 4,127.5 $ 707.2 577.4 557.5 $ 1,842.1 565.3 630.7 116.1 $ 3,154.2 350.0 1,617.9 (952.7) $ 4,169.4 $ 5,722.0 (2,892.0) $ 2,830.0 (1,723.7) (42.8) $ 1,063.5 (373.7) $ 689.8 $ 3.2 $ 7,781.2 (4,456.7) $ 3,324.5 (2,518.2) (36.6) $ 769.7 (261.1) $ 508.6 $ 7.0 Evaluate and compare the two companies by responding to the following questions. Note: Because comparative statements are not provided you should use year-end balances in place of average balances as appropriate. Required: 1. For both companies, compute the ratios below. 2. Evaluate and compare the two companies. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For both companies, compute the ratios below. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.) Metropolitan Republic Return on Assets 0.17 % 0.12 Profit Margin 0.12 X % 0.07 % Asset Turnover 1.40 times 1.87 times Return on Equity 0.17 X % 0.12 X % Equity Multiplier 1.00 1.00 Acid-Test Ratio 0.47 0.21 Current Ratio 0.94 0.83 Receivables Turnover 12.95 times 23.23 times Inventory Turnover (5.98) times (6.86) times Times Interest Earned times times

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Money, Markets And Capital The Case For A Monetary Analysis

Authors: Jean Cartelier

1st Edition

0815355777, 9780815355779

More Books

Students also viewed these Accounting questions

Question

15 Which two investment ratios take into account market prices?

Answered: 1 week ago

Question

What do you think is likely to be Liams problem? Discuss.

Answered: 1 week ago

Question

What laws were passed because of domestic violence?

Answered: 1 week ago