inventory turnover

Required 1 Required 2 For both companies, compute the ratios below. (Consider 365 days a year. Do not round intern your final answers to 2 decimal places.) Metropolitan 15.11 Return on Assets Profit Margin Asset Turnover Return on Equity Equity Multiplier Acid-Test Ratio Current Ratio Receivables Turnover Inventory Turnover Times Interest Earned 10.69 % 1.41 times 35.59 % 2.35 0.47 0.94 13.39 times 12.20 X times 20.37 times Republic 10.90 % 568 % 1.92 times 44.52 4.08 0.21 0.83 23.62 times 12. 19 times 17.39 times Required Required 2 > Problem 4-15 (Algo) Compare two companies in the same industry; Chapters 3 and 4 (L04-10] Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and distribution industry ($in millions, except per share amounts) Balance Sheets Metropolitan Republic Assets Cash $ 181.3 $ 41.1 Accounts receivable (net) 425.7 329.0 Short-term investments 6.6 Inventory 467.4 637.2 Prepaid expenses and other current assets 137.6 480.7 Current assets $ 1,212.0 $ 1,494.6 Property, plant, and equipment (net) 2,610.2 2,086.8 Intangibles and other assets 213.3 469.7 Total assets 5 4,035.5 $ 4,951.1 Liabilities and Shareholders' Equity Accounts payable $ 468.9 694.2 Short-ter notes 232.1 562.4 Accruals and other current liabilities 586.2 543.5 Current liabilities $ 1,287.2 $ 1,800.1 Long-term debit 537.6 546,3 Deferred tax liability 388.6 615.7 Other long-term liabilities 109.0 97.1 Total liabilities $ 2,322.4 $ 3,059.2 Common stock (par and additional paid in capital) 146.9 336.2 Retained earnings 2,480.9 1,604.9 Less: Treasury stock (914.7) (949.0) Total liabilities and shareholders! equity $ 4,035.5 $ 4,851.1 Income Statements at sal EA Income Statements Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Net income per share $ 5,701. (2,995.0) $ 2,796.0 (1,740.7) (51.8) $ 1,893.5 (393.7) $ 609.8 $ 2.6 $ 7,778.2 (4,477.7) $ 3,292.5 (2,534.2) (43.6) s 714.7 (273.1) $ 441.6 $ 6.6 Evaluate and compare the two companies by responding to the following questions. Note: Because comparative statements are not provided you should use year-end balances in place of average balances as appropriate. Required: 1. For both companies, compute the ratios below. 2. Evaluate and compare the two companies