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the brick vs. leons Income statement The brick Net sales 1,214,405 Cost of goods 739,505 Gross profit 474,900 operating expenses 440,203 income from operations 34,697 other income 1,087 interest expense 5,233 Income before Tax 30,551 Income tax expense 1,232 net income 29,319 Balance sheet The brick The brick Leons Profitability Leons Gross profit margin 547,744 EBIT 323,629 EBIT to percentage of sales 224,115 Net profit margin 170,048 Return on equity 54,067 Return on assets 20,658 Asset turnover Liquidity 74,725 Current ratio 25,761 quick ratio 48,964 DSO ART Leons Inventory days on hand inventory turnover 20,592 solvency & market value 20,705 Interest coverage 72,644 debt to equity ratio 75,749 Debt to assets 189,690 Book value per share 182,023 dividend payout 9,989 EPS 381,702 1. Calculate the above Ratios 18 marks 99,579 2. Comment on each company's profitablility 4 marks 21,685 3. Comment on each company's Liquidity 4 marks 121,264 4. Comment on each company's Solvency and Market Values 4 marks 260,438 5. If you were an investory, which company would you rather invest in? 381,702 Give clear reasons for your answers. 10 marks cash & equivalents A/R Inventories Other current assets Total current assets plant, property & equipment other assets TOTAL ASSETS 29,201 54,192 193,670 7,310 284,373 602,241 37,286 923,900 current liabilites L/T liabilites Total liabilities Shareholders equity T.L. + shareholders equity 278,213 167,298 445,511 478,389 923,900 19234 average A/R average inventories average total assets average shareholders equity # of outstanding common share dividend 45862 181266 892,000 494890 750,000 20,000 71962 376316 255152 368,000 25,000

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