Net sales, net income, total assets, and total common stockholders' equity information for fiscal year 1996 is available for the following three companies:

\section*{Instructions}

(a) Compute the following relationships for each company:
(1) Debt to total assets ratio (2) Return on sales (profit margin percentage)
(3) Return on assets (4) Return on common stockholders' equity

(b) What reasons might there be for the differing relationships among these three com-
Calculate and analyze profitability and solvency relationships. (SO 7) \(\square\) panies? In your answer, consider the different kinds of industries these companies represent. Do any similarities or differences in the type of business help account for the differences you see?

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Company Ford Motor Company Exxon Sears Roebuck Net Sales Net Income (in millions) (in millions) $108,521.0 $2,529.0 $198,938.0 97,825.0 5,280.0 84,145.0 Total Assets (in millions) Total Common Equity (in millions) $15,574.0 34,792.0 54,873.4 2,374.4 90,807.8 11,664.1