P2-41. Compare Operating Characteristics Across Industries Following are selected income statement and balance sheet data for companies in different industries. LO1, $ millions Sales Cost of Goods Net Sold Income Assets Liabilities Stockholders' Equity Target Corp. Target $75,356 $53,299 $2,937 $ 41,290 $29,993 $11,297 Nike Inc.. Ni 36,397 20,441 1,933 22,536 12,724 9,812 Harley-Davidson.. 5,717 Pfizer. 53,647 3,352 11,248 11,188 531 10,666 8,892 1,774 Harle 159,422 95,664 63,758 Pf Required a. Compute the following ratios for each company. 1. Gross profit/Sales 2. Net income/Sales 3. Net income/Stockholders' equity 4. Liabilities/Stockholders' equity b. Comment on any differences among the companies' gross profit-to-sales ratios and net income as a per- centage of sales. Do differences in the companies' business models explain the differences observed? c. Which company reports the highest ratio of net income to equity? Suggest one or more reasons for this result. d. Which company has financed itself with the highest percentage of liabilities to equity? Suggest one or more reasons why this company can take on such debt levels.