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
	Metropolitan		Republic
Assets
Cash	$	271.3			$	42.8
Accounts receivable (net)		503.7				403.0
Short-term investments						8.1
Inventory		550.4				708.2
Prepaid expenses and other current assets		205.6				567.7
Current assets	$	1,531.0			$	1,729.8
Property, plant, and equipment (net)		2,696.2				2,589.0
Intangibles and other assets		287.3				582.7
Total assets	$	4,514.5			$	4,901.5
Liabilities and Shareholders Equity
Accounts payable	$	560.9			$	777.2
Short-term notes		301.1				632.4
Accruals and other current liabilities		673.2				612.5
Current liabilities	$	1,535.2			$	2,022.1
Long-term debt		634.6				635.3
Deferred tax liability		464.6				697.7
Other long-term liabilities		202.0				186.1
Total liabilities	$	2,836.4			$	3,541.2
Common stock (par and additional paid-in capital)		219.9				428.0
Retained earnings		2,556.9				1,690.9
Less: Treasury stock		(1,098.7	)			(758.6	)
Total liabilities and shareholders equity	$	4,514.5			$	4,901.5
Income Statements
Net sales	$	5,784.0			$	7,845.2
Cost of goods sold		(2,830.0	)			(4,399.7	)
Gross profit	$	2,954.0			$	3,445.5
Operating expenses		(1,656.7	)			(2,742.2	)
Interest expense		(77.8	)			(46.6	)
Income before taxes	$	1,219.5			$	656.7
Income tax expense		(300.7	)			(126.1	)
Net income	$	918.8			$	530.6
Net income per share	$	2.5			$	7.5

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.