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Problem 3-17 Interpreting results from the Du Pont system of analysis [LO3-3] Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation Multi-Media

Problem 3-17 Interpreting results from the Du Pont system of analysis [LO3-3] Assume the following data for Cable Corporation and Multi-Media Inc. Cable Corporation Multi-Media Inc. Net income $ 35,800 $ 128,000 Sales 346,000 2,700,000 Total assets 449,000 929,000 Total debt 201,000 523,000 Stockholders' equity 248,000 406,000 a-1. Compute return on stockholders equity for both firms. (Input your answers as a percent rounded to 2 decimal places.) a-2. Which firm has the higher return? multiple choice Multi-Media Inc. Cable Corporation b. Compute the following additional ratios for both firms. (Input your Net income/Sales, Net income/Total assets and Debt/Total asset answers as a percent rounded to 2 decimal places. Round your Sales/Total assets answers to 2 decimal places.)

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