Q1. Industry K has three companies whose income statements and balance sheets are summarized below. Fill the missing data in the table (indicated by a-i) and comment on each company's relative performance.

Comp. XComp. YComp. Z

Sales $500,000 d g

Net income $ 25,000 $30,000 h

Total assets $100,000 e $250,000

Total assets turnover a f 0.4

Profit (net) margin b 0.4% 5%

Return on total assets (ROA) c 2% i

Q4. In the table below is information for two companies:

$000)	Company K	Company L
Net sales(revenues)	21,472	23,314
Cost of goods sold	13,050	5,192
Average inventory	350	457
Average accounts receivable	1,837	4,996
Average accounts payable	2,025	1,048
Turnover days	?	?
Days inventory outstanding	37	32
Days sales outstanding	31	78
Days payable outstanding	61	75
Total assets	12,500	12,000
Cash conversion cycle	?	?

From the above data, make the observations about the relative performance and determine the better-performed company. (Remember that cash flow begins with payment for raw material and ends with cash receipt on credit sales. The shorter the number of days in this cycle, the more available cash, and less need to borrow).