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PLEASE ANSWER ALL PARTS TO THE QUESTION!!! THANK YOU Homework LO1, 2 P2-49. Compare Operating Characteristics Across Industries Following are selected income statement and balance
PLEASE ANSWER ALL PARTS TO THE QUESTION!!! THANK YOU
Homework LO1, 2 P2-49. Compare Operating Characteristics Across Industries Following are selected income statement and balance sheet data for companies in different industries. MBC Cost of Goods Sold Net Income Stockholders' Equity Sales Assets Liabilities ARGET (TGT) VIKE (NKE) HARLEY- DAVIDSON (HOG) FIZER (PFE) $ millions Target. . Nike Harley-Davidson.. Pfizer. $75,356 36,397 5,717 53,647 $53,299 $ 2,937 20,441 1,933 3,352 11,248 11,188 $ 41,290 22,536 10,666 159,422 $29,993 12,724 8,892 95,664 $11,297 9,812 1,774 63,758 531 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 percentage 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 levelsStep by Step Solution
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