Required:

1. Compute the return on total assets.

2. Compute the return on equity.

3. Is Mulligan`s financial leverage positive or negative? Explain.

4. Compute the current ratio.

5. Compute the acid-test ratio.

6. Compute the inventory turnover.

7. Compute the average sale period.

8. Compute the debt-to-equity ratio.

9. Compute the total asset turnover.

10. Compute the net profit margin percentage.

Mulligan Corporation Comparative Balance Sheet (dollars In Millions) This Year Last Year Assets Current Assets: Cash Marketable Securities Account Receivable Inventories Other Current Assets Total Current Assets Property & Equipment, net Other Assets Total Assets $281 157 288 692 278 1,696 2,890 758 5,344 $313 141 224 636 216 1,530 2,288 611 4,429 Labilities and Stockholders' Equity Current Labilities: Accounts Payable Short-term bank loans Accrued Liabilities Other Current Liabilities Total Current Liabilities Long-term Liabilities Total Liabilities Stockholder' Equity: Common Stock and additional Paid in Capital Retained Earnings Total Stockholders' equity Total Liabilities and Stockholders' equity $391 710 757 298 $2,156 904 $341 700 662 233 $1,936 265 $3,060 $2,201 $40 2244 2284 $5,344 $40 2188 2228 $4,429 Income Statement (Dollars in Millions) This Year $9,411 3,999 $5,412 Sales Cost of Goods Sold Gross Margin Selling and Administrative Expenses: Store Operating Expenses Other Operating Expenses Depreciation and Amortization General and Administrative Expenses Total selling and Administrative Expenses Net Operating Income Plus: Interest and other Income Interest expense Net Income before taxes Income Taxes (about 36%) Net Income $3,216 $294 $467 $489 $4,466 $946 $110 $0 $1,056 $384 $672