FINANCIAL STATEMENT ANALYSIS Mulligan Corporation's financial statements are as follows: Mulligan Corporation Income Statement (dollars in millions) This Year 294 489 946 110 Sales $9,411 Cost of goods sold 3,999 Gross margin.. $5,412 Selling and administrative expenses: Store operating expenses. 3,216 Other operating expenses.. Depreciation and amortization 467 General and administrative expenses....... Total selling and administrative expenses.... 4,466 Net operating income... Plus interest and other income Interest expense. Net income before taxes 1,056 Income taxes (about 36%) 384 Net income $ 672 Mulligan Corporation Comparative Balance Sheet (dollars in millions) This Year Assets Current assets: Cash $ 281 Marketable securities Accounts receivable Inventories..... O Last Year $ 313 157 141 288 224 92 636 Other current assets 278 216 Total current assets. 1,696 1,530 2,288 611 $4,429 $ 341 710 700 757 662 298 233 1,936 265 2,201 Property and equipment, net 2,890 Other assets... 758 Total assets. $5.344 Liabilities and Stockholders' Equity Current liabilities: Accounts payable... $391 Short-term bank loans Accrued liabilities Other current liabilities Total current liabilities 2,156 Long-term liabilities. 904 Total liabilities... 3,060 Stockholders' equity: Common stock and additional paid-in capital...... 40 Retained earnings Total stockholders' equity 2.284 Total liabilities and stockholders' equity $5,344 Required: A. 1. Compute the return on total assets. 2. Compute the return on equity. 3. Compute the current ratio. 4. Compute the acid-test ratio. 5. Compute the inventory turnover. 6. Compute the average sale period. 7. Compute the debt-to-equity ratio. 8. Compute the total asset turnover. 9. Compute the net profit margin percentage. 2.244 40 2,188 2.228 $4,429