• What do these ratios tell us about Western Grain? What types of strategies that were discussed in the text would help Western Grain to be in line or better than the performance of other companies in their industry?

A25 A B D E F 1 Western Grain Company Income Statement 2017 2 Total Assets $ 4,237.1 Equity $ 1,713.4 3 Net Sales 4 Cost of goods sold 5 Selling and Admin Expense 6 Operating Profit 7 Interest Expense 8 Other income (expense), net 9 Earnings before income taxes 10 Income Taxes 11 Net Earnings 12 Net Earnings per share 13 Retained earnings, beginning of year 14 Dividends paid 15 Retained earnings, end of year 16 17 18 19 Profit Margin 20 Return on Assets 21 Return on Equity 22 $ $ $ $ $ $ $ $ $ $ $ $ 6,295.4 2,989.0 2,237.5 1,068.9 33.3 (1.5) 1,034.1 353.4 680.7 2.94 3,033.9 (305.2) 3,409.4 Industry Western Grain 16% 16% 40% % Difference Notes 12% 4% Western Graun's profit margin is 4% higher than 18% -2% Western Gruan's ROA is 2% lower than its peers on 25% 15% Western Gruan's ROE is 15% higher than the