Following are selected income statement and balance sheet data for companies in different industries. Cost of Goods Sold ($ millions) Harley-Davidson Nike, Inc. Starbucks Corp. Target Corp. Sales $5,342 13,740 6,369 51,271 Company Harley-Davidson Nike, Inc. Starbucks Corp. Target Corp. $3,302 7,624 2,605 34,927 % % 96 96 Net Income $960 1,212 494 2,408 Assets $5,255 8,794 3,514 34,995 96 % % 96 (a) Compute the following ratios for each company. Round all answers to one decimal place (percentage answer example: 0.2345 = 23.5%). Note: The liabilities to stockholders' equity ratio should not be converted into a percentage answer (round answers to one decimal place, for example: 0.452 = 0.5). Gross Profit/ Net Income/ Net Income/ Liabilities/ Sales Sales Equity Equity Liabilities $2,171 % % % % 3,149 1,423 20,790 Stockholders' Equity $3,084 5,645 2,091 14,205

The lower zrosi profic comganies are thowe that can manufacture their products at the lowest coot: The hober gross protit companes are those that sel the higheut unit volumes 10 Which company reports the highest rato of net income to equaly? Which of une followne Hacements best descrbes the differences in the ratio of net income to equay that we obsere? The highest retum co ceuiry companies ate thave that mainkain high levels of debt and as a result reduce their uthization of equity. (d) Which company has finanked isself wath the feghes percentage of lisbifities to equity? Qcompurues that can sustain hegher levels of debe are bypcally lorger compunies