What differences do you notice in the common-sized balance sheets that might indicate that one of the firms is doing better than the other?(Select all that apply.)

A.

Based on retained earnings, we see that Time Warner has about $86 billion in accumulated profits over the life of the business, while Walt Disney has accumulated profits of close to $47 billion.

B.

Time Warner has sold over $150 billion in common stock, compared to less than $34 billion by Walt Disney.

C.

Walt Disney has a larger size when it comes to total assets. Furthermore, the relative make-up of the assets is fairly similar.

D.

Since Time Warner produces about $0.39 of sales per dollar of assets compared to Walt Disney generating about$0.55 of sales per dollar of assets, Walt Disney is clearly using its assets more efficiently than Time Warner.

E.

Time Warner relies more heavily on debt financing with a debt ratio of about 56 percent compared to approximately 44 percent for Walt Disney.