Subject: BUSINESS POLICY

a. For each company listed below, compute Return on Sales (ROS),which reveals the portion of each revenue dollar that results in profit. ROS =Net income / Sales revenue.

($ in Millions)	Year Ended	Revenue	Net Income	ROS
Miscrosoft (MSFT)	6/30/2008	$60,420	$17,681	29.26%
Wal-Mart Stores (WMT)	1/31/2009	$405,607	$13,400
Ford Motor Company (F)	12/31/2008	$146,277	$(14,672)

b. Wal-Mart Stores has (greater /Iess) revenue than Microsoft, but Microsoft has a (higher / lower) ROS ratio than Wal-Mart. The ROS ratio for Microsoft indicates _____________ % of every revenue dollar resulted in profit (net income), but for Wal-Mart Stores only ____________ % of every revenue dollar resulted in profit. Ford Motor Company reports a (positive I negative) ROS,indicating (revenue / net income) is negative.

c. For Wal-Mart, _______________ cents of each revenue dollar went to pay for all of the costs of running the business, leaving _______________ cents of each revenue dollar for profit.

d. The corporation with the strongest ROSratio is (MSFT/ WMT/ F).

How can a company increase its ROSratio?

e. Does a low ROSratio indicate a weak corporation? (Yes/ No) Why?