P2-41. g. Who are the company Compare Operating Characteristics Across Industries Following are selected income statement and balance sheet data for companies in different industries. Homewo MB Cost of Goods S millions Sales Sold Net Income Stockholders' Assets Liabilities Equity Target Corp. $75,356 Nike Inc..... 36,397 20,441 $53,299 $ 2,937 1,933 $ 41,290 $29,993 $11,297 Target Ce Nike 22,536 12,724 9,812 Harley-Davidson. 5,717 3,352 531 10,666 8,892 1,774 Harley- Pfizer ( 53,647 11,248 11,188 159,422 95,664 63,758 Pfiz 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.