Use the information for these two companies to compute the ratios on the next tab See Exhibit 12.4 for Summary of Financial Ratios RED SHOE, INC. Consolidated Balance Sheets (in millions) 31-May 2014 2013 | Current assets: Cash and cash equivalents Accounts receivable, net of allowance Inventories Other current assets Total current assets Property, plant, and equipment, net Other long-term assets Total assets 1 1 1 $634.00 2,101.10 1,514.90 429.9 4,679.90 1,620.80 413.2 $6.713.90 $575.50 1,804.10 1,373.80 401.3 4,154.70 1614.5 670.8 $6.440.00 $205.70 75.4 572.7 | 11,054.20 107.2 1 2,015.20 Liabilities and Stockholders' Equity Current liabilities: Current portion of long-term debt Notes payable Accounts payable Accrued liabilities Income taxes payable Total current liabilities Long-term liabilities Total liabilities Stockholders' equity: Common stock Contributed capital in excess of par value Unearned stock compensation Accumulated other comprehensive loss Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $55.30 425.2 504.4 765.3 83 1,833.20 767.8 2,601.00 708 1 2,723.20 2.8 589 -0.6 -239.7 3,639.20 3,990.70 $6.713.90 2.8 538.7 -5.1 -192.4 3,495.00 3.839.00 $6.440.00 RED SHOE, INC. Consolidated Statement of Income 31-May-14 (in millions) Revenues Cost of sales Gross profit Operating expenses Operating income Interest expense Other revenues and expenses Income before tax Income taxes Income before effect of accounting change Cumulative effect of accounting change, net of tax Net income $10,697.00 6,313.60 4,383.40 3,137.60 1,245.80 42.9 79.9 1,123.00 382.9 740.1 266.1 $474.00 BLUE SHOE, INC. Consolidated Balance Sheets (in millions) | ___ Jan. 31, 2014 Jan. 31 2013 Assets $34.50 15.5 27.2 $22.20 14.7 28.4 Current assets: Cash and cash equivalents Accounts receivable, net of allowance Inventories Other current assets Total current assets Property, plant, and equipment, net Other long-term assets Total assets 3.5| 4.2 ___80.7 69.5 5.71 1.1 28750 1.5 S7800 $8.50 7.8 16.3 $6.60 5.6 12.2 2.6 __ 14.8 2.5 18.8 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Total current liabilities Long-term liabilities Total liabilities Stockholders' equity: Common stock Contributed capital in excess of par value Unearned stock compensation Accumulated other comprehensive loss Treasury stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity | 2.3/ 2.3 17.8 17.4 -0.1 -0.5 -0.91 -1.3 -5.4 55.9 50.7 68.7 63.2 5875037800 -6.3 BLUE SHOE, INC. Consolidated Statement of Income 31-Jan-14 (in millions) L Revenues Cost of sales Gross profit Operating expenses Operating income Interest expense Other revenues and expenses Income before tax Income taxes Net income $133.50 87.3 46.2 37.3 8.9 0.1 0.3 8.5 3.3 $5.20 Answer: Red Shoe Blue Shoe (a) Current ratio (b) louick ratio | (c) (d) Accounts receivable turnover Inventory turnover (e) Asset turnover (f) Times interest earned (9) Net profit margin percentage (h) (i) (1) Operating margin percentage Gross profit margin percentage Return on equity Debt to equity Debt to total assets