Instructions

(a) For each company, compute the following ratios.

(1) Current ratio. (2) Accounts receivable turnover. (3) Average collection period. (4) Inventory turnover. (5) Days in inventory. (6) Profitmargin.

(7) Asset turnover. (8) Return on assets. (9) Return on common stockholders? equity.

(10) Debt to assets ratio.

(b) Compare the liquidity, profitability, and solvency of the two companies.

PRINTED BY: Mark Catuogno . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted. PRINTED BY: Mark Catuogno . Printing is for personal, private use only. No part of this book may be reproduced or transmitted without publisher's prior permission. Violators will be prosecuted