(FINANCIAL MANAGEMENT QUESTION)

The selected ratios of the two companies are given below. Compare the performance of two companies from the standpoint of capital market investors.
	Schweppes	Microsoft	Softdrink Ind. avg.
Current Ratio	2.09	2.50	1.84
Total Debt Ratio	0.83	0.22	1.00
Times Interest Earned	5.76	76.27	7.51
Total Asset Turnover	1.22	0.83	1.67
P/E ratio	5.01	64.09	4.67

Question 1 In the table below is data for two companies in a competitive industry. (5000) Company A Company B Revenues(sales) 70500 80000 Cost of Goods Sold 38540 45570 Average inventory 7050 8300 Average receivable 5510 7255 Average payable 7015 8600 Calculate the turnover ratios and evaluate the relative performance (operating efficiency) of both companies