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	$	179.3		$	37.1
Cash
Accounts receivable (net)		422.7			325.0
Short-term investments					4.7
Inventories		466.4			635.2
Prepaid expenses and other current assets		134.6			476.7
Current assets	$	1,203.0		$	1,478.7
Property, plant, and equipment (net)		2,608.2			2,064.6
Intangibles and other assets		210.3			464.7
Total assets	$	4,021.5		$	4,008.0
Liabilities and Shareholders Equity
Accounts payable	$	467.9		$	691.2
Short-term notes		227.1			557.4
Accruals and other current liabilities		585.2			538.5
Current liabilities	$	1,280.2		$	1,787.1
Long-term debt		535.6			542.3
Deferred tax liability		384.6			610.7
Other long-term liabilities		104.0			95.1
Total liabilities	$	2,304.4		$	3,035.2
Common stock (par and additional paid-in capital)		144.9			335.0
Retained earnings		2,476.9			1,601.9
Less: treasury stock		(904.7	)		(964.1	)
Total liabilities and shareholders equity	$	4,021.5		$	4,008.0
Income Statements
Net sales	$	5,698.0		$	7,768.2
Cost of goods sold		(2,909.0	)		(4,481.7	)
Gross profit	$	2,789.0		$	3,286.5
Operating expenses		(1,743.7	)		(2,539.2	)
Interest expense		(56.8	)		(46.6	)
Income before taxes	$	988.5		$	700.7
Tax expense		(394.7	)		(276.1	)
Net income	$	593.8		$	424.6
Net income per share	$	2.40		$	6.50

Note: Because comparative statements are not provided you should use year-end balances in place of average balances as appropriate.

Required:

Calculate the rate of return on assets for the following companies Calculate the return on assets for both companies. Calculate the Rate of return on shareholders equity for the following companies Calculate the equity multiplier for the following companies. Calculate the acid-test ratio and current ratio for the following companies. Calculate the receivables and inventory turnover ratios the following companies. Calculate the times interest earned ratio for the following companies.