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Using the year-end information for each of the following six separate companies ($ thousands) Average Assets Net Incom Case Company 1 Company 2 Assets $90,500
Using the year-end information for each of the following six separate companies ($ thousands) Average Assets Net Incom Case Company 1 Company 2 Assets $90,500 $11,765 $100,000 $20,000 64,000 46,720 40,000 3,000 Company 3 32,500 26,650 50,000 Company A 147,000 55,000 200,000 21,000 Company 5 Company 92,000 31,200 40,000 7,520 104,500 52,250 30,0 12,000 a. Calculate the debt ratio and the return on assets. (Round your debt ratios to 2 decimal places and return on assets to 3 decimal places. Enter all answers in numbers and not in percentages.) Case Debt Ratio ROA Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 d. Which two companies indicate the greatest risk (based on the debt ratio)? (Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Company 1 7 Company 2 L Company 3 Company 4 7 Company 5 7 Company 6 e. Which two companies earn the highest return on assets? (Single click the box with the question mark to produce o check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Company 1 Company 2 Company 3 Company 4 7 Comparly 5 Company 6
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