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 Metropolitan Republic $ 195.3 441.7 $ 41.4 335.0 6.8 483.4 649.2 147.6 496.7 $ 1,268.0 2,626.2 233.3 $ 4,127.5 $ 1,529.1 2,155.2 485.1 $ 4,169.4 $ 490.9 245.1 609.2 $ 707.2 577.4 557.5 $ 1,345.2 $ 1,842.1 554.6 565.3 401.6 630.7 116.1 $ 3,154.2 126.0 $ 2,427.4 161.9 2,497.9 (959.7) $ 4,127.5 Income Statements $ 5,722.0 350.0 1,617.9 (952.7) $ 4,169.4 $ 7,781.2 (4,456.7) Gross profit Operating expenses Interest expense Income before taxes Income tax expense Net income Net income per share (2,892.0) $ 2,830.0 (1,723.7) (42.8) $ 1,063.5 $ 3,324.5 (2,518.2) $ (36.6) 769.7 $ (373.7) 689.8 (261.1) $ 508.6 $ 3.2 $ 7.0 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 For both companies, compute the ratios below. (Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.) Return on Assets Profit Margin Asset Turnover Return on Equity Metropolitan Republic % % % % times times % % Equity Multiplier Acid-Test Ratio Current Ratio Receivables Turnover times times Inventory Turnover times times Times Interest Earned times times