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 Assets Cash Accounts receivable (net) Short-term investments Inventory Prepaid expenses and other current assets Current assets Property, plant, and equipment (net) Intangibles and other assets Total assets Liabilities and Shareholders' Equity Accounts payable Short-term notes Accruals and other current liabilities Current liabilities Long-term debt Deferred tax liability Other long-term liabilities Total liabilities Common stock (par and additional paid-in capital) Retained earnings Less: Treasury stock Total liabilities and shareholders' equity Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Metropolitan Republic 297.3 $ 43.5 525.7 431.e 8.6 576.4 732.2 231.6 591.7 $1,631.0 $ 1,807.1 2,714.2 314.3 $ 4,659.5 $ 589.9 325.1 697.2 2,750.3 619.0 $5,176.4 $ 798.2 659.4 633.5 $1,612.2 $2,091.1 663.6 667.3 489.6 720.7 229.0 209.1 $ 2,994.4 $3,688.2 452.0 $ 4,659.5 Income Statements 1,705.9 (669.7) 243.9 2,580.9 (1,159.7) $ 5,807.0 (2,808.0) $2,999.0 $5,176.4 $ 7,874.2 (4,374.7) $3,499.5 (2,918.2) (1,630.7) (91.8) (43.6) $ 1,276.5 $ 537.7 (283.7) (.9) $ 992.8 $ 538.6 $ .5 $ 8.0 Income tax expense Net income Net income per share 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.