Selected Financial Information (amounts in millions except per share data) Total current assets Merchandise inventory Property and equipment, net of depreciation Total assets Total current liabilities Total long-term liabilities Total liabilities Total stockholders' equity Revenues Cost of goods sold Gross profit Operating income Earnings from continuing operations before income taxes Income tax expense Net earnings Basic earnings per share Required January 24, 2018 $ 12,733 January 25, 2017 $ 12,957 13,824 $9,737 12,405 14,827 34,519 33,636 17,940 8,424 12,882 6,816 30,822 15,240 3,697 18,396 60,658 63,946 31,634 39,548 29,024 24,398 5,216 4,450 5,258 2,961 2,616 2,298 2,642 663 $ 3.66 $ 2.91 a. Compute the following ratios for the companies' 2017 fiscal years (years ending in January 2018): (1) Current ratio. (2) Average days to sell inventory. (Use average inventory.) (3) Debt-to-assets ratio. (4) Return on investment. (Use average assets and use "Earnings from continuing operations before income taxes" rather than "net earnings.") (5) Gross margin percentage. (6) Asset turnover. (Use average assets.) (7) Return on sales. (Use "Earnings from continuing operations before income taxes" rather than "net earnings.") (8) Plant assets to long-term debt ratio. b. Which company appears to be more profitable? Identify which ratio(s) from Requirement a you used to reach your conclusion. c. Which company appears to have the higher level of financial risk? Identify which ratio(s) from Requirement a you used to reach your conclusion. d. Which company appears to be charging higher prices for its goods? Identify which ratio(s) from Requirement a you used to reach your conclusion. e. Which company appears to be the more efficient at using its assets? Identify which ratio(s) from Requirement a you used to reach your conclusion. Complete this question by entering your answers in the tabs below. Req A Req B to E Compute the following ratios for the companies' 2017 fiscal years (years ending in January 2018): (Use 365 days in a year. Round your intermediate calculations to 2 decimal places. Round your "Current ratio" answers to 2 decimal places and "Average days to sell inventory" answers to the nearest whole number and all other answers to 1 decimal place.) 1. Current ratio 2. Average inventory Handy Hardware Incorporated All Tools Corporation to 1 to 1 Inventory turnover times times Average days to sell inventory days days 3. Debt to assets ratio % % 4. Average assets ROI 5. Gross margin percentage 6. Asset turnover 7. Return on sales 8. Plant assets to long-term debt ratio 2 Ron A % % % % times times % % to 1 to 1 Pan R to F S < Prev. 5 of 5 Next >