The following data show five items from the financial statements of three companies for a recent year (amounts in millions):

Required
A. Compute the rate of return on assets for each company. Separate the rate of return on assets into the return on sales and the asset turnover ratio.
B. The three companies are American Airlines, Johnson & Johnson, and May Department Stores. Which of the companies corresponds to A, B, and C, respectively? What clues did you use in reaching yourconclusions?

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Company A Company B Company C For the Year Revenues Income before interest and related taxes Net income to common shareholders2 $8,824 615 477 $9,000 1,043 974 $11,742 611 503 Average during the Year Total assets Common shareholders' equity Net income +Interest expense X (1 9,073 6,833 7,163 2,915 3,494 2,888 tax rate) 2Net income Preferred stock dividends