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THE FOLLOWING INFORMATION APPLIES TO THE QUESTIONS ON THIS PAGE: Answer the questions below using the following ratios for the two companies Ratio Return
THE FOLLOWING INFORMATION APPLIES TO THE QUESTIONS ON THIS PAGE: Answer the questions below using the following ratios for the two companies Ratio Return on assets Abacus Corp. Xenon Inc. 11.9% 10.2% Return on common stockholders' equity 34.9% 35.7% Inventory turnover 13.8 12.4 Debt to assets 0.53 0.62 Return on assets = net income / average total assets Rate on common stockholders' equity = (net income - preferred dividends) / average common stockholders' equity Inventory turnover = cost of goods sold / average inventory Debt to assets ratio = total liabilities/ total assets
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