Examine the following selected financial information for

Best Value

Corporation and

Modern

Stores, Inc., as of the end of their fiscal years ending in

2018:

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Data table

(In millions)		Best Value Corporation			Modern Stores, Inc.
1.	Total assets. . . . . . . . . . . . . . . . . . . . . . . . . .		$15,256			$203,110
2.	Total common stockholders' equity. . . . .		$3,075			$71,460
3.	Operating income. . . . . . . . . . . . . . . . . . . .		$1,350			$26,820
4.	Interest expense. . . . . . . . . . . . . . . . . . . . . .		$88			$2,020
5.	Leverage ratio. . . . . . . . . . . . . . . . . . . . . . . .
6.	Total debt. . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.	Debt ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.	Times interest earned. . . . . . . . . . . . . . . . .

Requirements

1.

Complete the table, calculating all the requested information for the two companies. Use year-end figures in place of averages where needed for the purpose of calculating the ratios in this exercise.

2.

Evaluate each company's long-term debt-paying ability (strong, medium, weak).

1. Complete the table, calculating all the requested information for the two companies. Use year-end figures in place of averages where needed for the purpose of calculating ratios in this exercise. (Round your answers to two decimal places, X.XX. Enter amounts in millions as provided to you in the problem statement.)

(In millions)		Best Value Corporation			Modern Stores, Inc.
1.	Total assets. . . . . . . . . . . . . . . . .		$15,256			$203,110
2.	Total Stockholders' equity. . . . . .		$3,075			$71,460
3.	Operating income. . . . . . . . . . . .		$1,350			$26,820
4.	Interest expense. . . . . . . . . . . . .		$88			$2,020
5.	Leverage ratio. . . . . . . . . . . . . . .		4.96			2.84

Part 2

6.

Total debt. . . . . . . . . . . . . . . . .