Question 12 of 12 - / 10 Tii View Policies Current Attempt in Progress (Compare ratios and comment on results) Selected financial data for two intense competitors in a recent year follow amounts in millions): Eonline Corporation Paperky Company Statement of income data: Net sales $9.587 Cost of goods sold Selling and administrative expenses Interest expense Otheir expenses $4,732 8,067 4.152 572 130 530 181 26 9 92 153 Income taxes $168 5239 Net income $723 $348 110 26 Statement of cash flows data Net cash inflow trom operating activities Net incrdase in cash during the year Statement of financial position data End-of-year balances MacBook Air Question 12 of 12 -/10 = Cash $307 $427 1,953 991 5.592 3.641 57.852 $5.059 $1.092 $809 4414 3.131 2346 1.119 Other current assets Long-term assets Total assets Current liabilities Long-term debt Total shareholders equity Total liabilities and shareholders' equity Beginning-of-year balances Total assets Total shareholders equity Other data: Average net receivables Average inventory $7852 $5,059 $7.205 $4.582 1.738 1.048 $1106 $656 804 508 (a) For each company, calculate the following ratios: (Round accounts receivable turnover, inventory turnover and current ratio to 2 decimal places, eg 14.83. Round net debt as a percentage of total copitalization to 2 decimal places, eg. 0.83. Round average collection period, days to sell inventory, interest coverage, return on asset, retum en eguity, cash flows to total liabilities, gross margin and profit margin to 1 decimat place, es 14.8 or 125%) MacBook Air - / 10 III (a) For each company, calculate the following ratios: (Round accounts recevable tumover, Inventory turnover and current ratio to 2 decimal places, es. 14.83. Round net debt as a percentage of total capitalization to 2 decimal places, e8.0.83. Round average collection period, days to sell inventory, Interest coverage, return on asset, retum on equity, cash flows to total liabilities, gross margin and profit margin to 1 decimal place, es. 14.8 or 13.5%) i. ii. TIL. iv. V. Average collection period for receivables Days to sell inventory Current ratio Net debt as a percentage of total capitalization Interest coverage (depreciation expense was $410 for Eonline and $260 for Paperky) Return on assets Return on equity Cash flows to total liabilities Gross margin Profit margin vt. vil vill ix. X. Paperky Company Eonline Corporation 50,60 42:10 days days 1 Average collection period 45.66 days days 36 38 ii. Days to sell inventory MacBook Air 110 III Eonline Corporation Paperky Company i. Average collection period 42.10 days 50.60 days ii. Days to sell inventory 36.38 days 45.66 days II. Current ratio 2.07 1.75 iv. Net debt as a percentage of total capitalization 0.56 0.62 V. Interest coverage 174 times 2.44 time vi. Return on assets 12.24 OR 9.15 % vil. Return on equity 1170 96 15.51 * viil. Cash flows to total liabilities % % R 36 ix. Gross margin X X Profit margin e Textbook and Media Attempts: 0 of 2 used Submit Answer Save for Later Last saved 2 days ago MacBook Air
