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 $10,78611,106$

Property and equipment, net of depreciation $20,25622,309$

Total assets $42,12768,687$

Total current liabilities $5,25522,327$

Total long$-$term liabilities $35,30936,396$

Total liabilities $40,56458,723$

Total shareholders$$ equity $1,5639,964$

Revenue $110,641119,142$

Cost of goods sold $65,40334,352$

Gross profit $45,23884,790$

Operating income $9,30526,038$

Earnings from continuing operations before income tax expense $16,38315,871$

Income tax expense $4,1746,299$

Net earnings $12,2099,572$

Basic earnings per share $ $7\mathrm{.}48$ $ $6\mathrm{.}62$

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 $11,97311,756$

Property and equipment, net of depreciation $11,99214,036$

Total assets $29,56937,027$

Total current liabilities $15,33211,185$

Total long$-$term liabilities $10,1828,115$

Total liabilities $25,51419,300$

Total stockholders$$ equity $4,05517,727$

Revenues $66,07148,742$

Cost of goods sold $34,92635,094$

Gross profit $31,14513,648$

Operating income $5,1753,893$

Earnings from continuing operations before income taxes $5,2552,625$

Income tax expense $1,6972,012$

Net earnings $3,558613$

Basic earnings per share $ $3\mathrm{.}63$ $ $2\mathrm{.}88$

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.