The following information relates to Handy Hardware Incorporated, and All Tools Corporation for their 2017 and 2016 fiscal years.

HANDY HARDWARE INCORPORATED
Selected Financial Information
(amounts in millions, except per share amounts)
	January 28, 2018	January 29, 2017
Total current assets	$ 20,722	$ 25,694
Merchandise inventory	10,786	11,106
Property and equipment, net of depreciation	20,256	22,309
Total assets	42,127	68,687
Total current liabilities	5,255	22,327
Total long-term liabilities	35,309	36,396
Total liabilities	40,564	58,723
Total shareholders equity	1,563	9,964
Revenue	110,641	119,142
Cost of goods sold	65,403	34,352
Gross profit	45,238	84,790
Operating income	9,305	26,038
Earnings from continuing operations before income tax expense	16,383	15,871
Income tax expense	4,174	6,299
Net earnings	12,209	9,572
Basic earnings per share	$ 7.48	$ 6.62

ALL TOOLS CORPORATION
Selected Financial Information
(amounts in millions except per share data)
	January 24, 2018	January 25, 2017
Total current assets	$ 15,598	$ 11,367
Merchandise inventory	11,973	11,756
Property and equipment, net of depreciation	11,992	14,036
Total assets	29,569	37,027
Total current liabilities	15,332	11,185
Total long-term liabilities	10,182	8,115
Total liabilities	25,514	19,300
Total stockholders equity	4,055	17,727
Revenues	66,071	48,742
Cost of goods sold	34,926	35,094
Gross profit	31,145	13,648
Operating income	5,175	3,893
Earnings from continuing operations before income taxes	5,255	2,625
Income tax expense	1,697	2,012
Net earnings	3,558	613
Basic earnings per share	$ 3.63	$ 2.88

Required

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.

\begin{tabular}{|l|l|l|l|} \hline 2. Average inventory & & & \\ \hline Inventory turnover & & times & \\ \hline Average days to sell inventory & days & & dimes \\ \hline \end{tabular} 4. Average assets ROI %