^{Study and analyze Exhibit 1 of the case and contrast the financial coefficients of the 13 firms studied in the article. Present the first three companies with:}

^{a.the best ability to cover your short-term bills identify the ratios used in your evaluation.}

^{b. the best financial performance, identify the coefficients used in your evaluation.}

Exhibit 1 RATIOS TELL A STORY2013 Selected Financial Data for 13 Companies (balance sheet amounts are percentage of total assets) 1 2.1.14 4.6% 3.8% 19.3% 2.4% 30.2% 2 11.29.13 30.6% 5.8% 0.0% 2.6% 39.0% 3 12.31.13 14.0% 4.1% 1.8% 3.7% 23.6% 4 5 12.31.13 12.31.13 12.3% 4.8% 30.0% 3.2% 5.8% 0.7% 4.5% 0.8% 52.7% 9.5% 6 1.31.14 3.6% 3.3% 21.9% 1.2% 29.9% 7 12.31.13 31.0% 11.9% 18.5% 0.0% 61.3% 8 3.1.14 33.5% 12.9% 3.2% 17.4% 67.0% 9 12.31.13 16.6% 6.8% 5.9% 4.5% 33.8% 10 6.29.13 3.3% 25.1% 18.9% 1.7% 49.0% 11 12.31.13 0.9% 75.2% 0.0% 0.0% 12 12.31.13 7.6% 3.6% 0.3% 2.2% 13.8% 13 12.31.13 2.5% 3.1% 0.9% 3.1% 9.6% 57.7% 7.3% 4.9% 100.0% 49.0% 12.3% 15.0% 100.0% 82.0% 0.0% 8.5% 100.0% 12.5% 0.0% 20.6% 100.0% 14.2% 11.6% 40.4% 100.0% 31.4% 14.9% 4.7% 100.0% 1.0% 3.7% 19.2% 100.0% 70.3% 7.8% 8.1% 100.0% 70.0% 1.1% 19.4% 100.0% 3.3% 40.3% 3.6% 100.0% 37.8% 0.0% 17.7% 55.6% 57.6% 9.5% 3.0% 100.0% 18.3% 5.7% 9.8% 33.9% 16.7% 5.7% 14.2% 36.6% 75.8% 0.0% 0.0% 2.5% 1.2% 7.9% 11.6% 18.2% 7.8% 81.6% Year end Assets: Cash Accts. Receivable Inventory Other CA Total Current Assets Net PP&E Goodwill Intangibles & oth Total Assets Liabilities: Accts. Pay. ST Debt Other Total Current Liabilities LT Debt Other Total Liabilities Equity:Noncontrolling Int. Net Contr. Cap. Ret. Inc. + OCI Total Equity Total Liab. & Equity ROS Asset Turnover ROA Financial Leverage ROE Current ratio Receivables collection Inventory Turnover Gross margin Dividend payout Revenue growth R&D ratio CFFO (millions) 6.4% 46.0% 8.7% 100.0% 0.6% 0.1% 14.0% 14.7% 14.4% 6.1% 35.2% 0.0% -2.4% 67.2% 64.8% 100.0% 7.2% 0.39 2.8% 1.54 4.3% 2.65 54 NA 94.4% 0.0% -7.9% 20.39% 1,152 2.2% -23.5% 39.7% 18.4% 100.0% 33.0% 12.0% 81.6% 0.0% - 17.5% 35.9% 18.4% 100.0% 1.6% 3.36 5.2% 5.43 28.4% 0.82 4 13.8 20.6% 20.8% 1.8% NA 3,380 5.7% 4.0% 23.2% 32.9% 29.7% 29.3% 91.9% 0.0% 20.1% - 12.0% 8.1% 100.0% 1.5% 1.04 1.6% 12.34 19.1% 0.72 14 NA NA 0.0% 3.0% NA 1,444 25.8% 32.4% 69.9% 0.0% 9.8% 20.3% 30.1% 100.0% 27.3% 6.6% 4.8% 100.0% 37.7% 1.9% 17.7% 57.2% 7.9% 10.6% 75.7% 0.0% 19.3% 5.0% 24.3% 100.0% 0.4% 1.85 0.7% 4.12 2.8% 1.07 23 7.3 11.0% 0.0% 21.9% 8.82% 5,475 3.9% 0.3% 2.9% 7.1% 27.4% 30.7% 65.2% 0.0% 7.2% 27.6% 34.8% 100.0% 17.0% 0.35 5.9% 2.88 16.9% 1.33 33 NA NA 33.4% 10.4% NA 3,078 21.8% 4.6% 60.3% 2.5% 1.3% 35.9% 39.7% 100.0% 3.5% 2.33 8.2% 2.52 20.5% 0.88 5 8.0 24.3% 36.8% 1.6% NA 23,257 6.3% 0.0% 23.8% 30.0% 21.5% 0.4% 52.0% 0.0% 29.6% 18.4% 48.0% 100.0% -86.2% 0.90 -77.8% 2.08 -162.0% 2.23 52 26.2 -64.5% 0.0% -38.5% 18.88% -159 7.6% 0.66 5.0% 5.43 27.3% 0.95 166 NA NA 28.6% 2.6% NA 1,809 19.5% 2.0% 8.2% 29.6% 20.8% 8.6% 59.0% 0.0% -22.7% 63.7% 41.0% 100.0% 2.2% 3.51 7.8% 2.44 19.1% 1.66 2.2% 4.3% 10.5% 16.9% 19.4% 14.1% 50.5% 2.4% 12.0% 35.1% 49.5% 100.0% 10.3% 0.42 4.3% 2.02 8.6% 2.00 60 2.7 61.5% 114.2% -6.8% 17.04% 11,654 11.7% 0.0% 87.5% 0.0% 6.7% 5.7% 12.5% 100.0% 16.6% 0.06 0.9% 8.02 7.6% NA 4836 NA NA 52.7% -3.3% NA 5,339 3.0% 0.0% 5.7% 8.7% 38.6% 9.1% 56.3% 0.0% -71.4% 115.2% 43.7% 100.0% 19.9% 0.77 15.3% 2.29 34.9% 1.59 17 51.3 66.3% 55.8% 2.0% NA 7,121 26 8.6% 0.30 2.6% 3.32 8.7% 0.82 37 2.6 64.0% 67.9% 1.4% NA 2,552 15.3 17.7% 65.3% 4.8% NA 1,512 -3- The ratios in Exhibit 1 are based on the following formulas: Net income 1. ROS (return on sales) Net sales Net sales 2. Asset turnover Total assets Net income 3. ROA (return on assets) Total assets ROS Asset turnover or 4. Financial leverage Total assets Total owners' cquity 5. ROE (return on equity) or 6. Current ratio 7. Inventory turnover Net income Total owners' equity ROA Financial leverage Total current assets Total current liabilities Cost of goods sold Ending inventory Accounts receivable Net sales/365 days This year's net sales-Last year's net sales Last year's net sales Net sales Cost of goods sold Net sales Cash dividends Net income 8. Receivables collection 9. Revenue growth 10. Gross margin 11. Dividend payout 12. R&D ratio = Research and development expense Net sales