Suppose selected financial data of Edgewater Company and The Ritter Company for 2014 are presented here (in millions).

Instructions
(a) For each company, compute the following ratios.
(1) Current ratio.
(2) Accounts receivable turnover.
(3) Average collection period.
(4) Inventory turnover.
(5) Days in inventory.
(6) Profit margin.
(7) Asset turnover.
(8) Return on assets.
(9) Return on common stockholders’ equity.
(10) Debt to assets ratio.
(11) Times interest earned.
(12) Current cash debt coverage.
(14) Free cash flow.
(13) Cash debt coverage.

(b) Compare the liquidity, solvency, and profitability of the twocompanies.

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Edgewater Income Statement Data for Year Ritter Net sales Cost of goods sold Selling and administrative expenses Interest expense Other income (expense) Income tax expense Net income $1,356.0 776.3 380.6 0.1 9.0 63.6 144.4 $1,436.5 605.5 .5 19.7 40.0 Balance Sheet Data (End of Year) 885.7 280.8 617.2 219.1 $836.3 $ 218.0 41.1 577.2 $ 836.3 Current assets Noncurrent assets Total assets $1,166.5 Current liabilities Long-term debt Total stockholders' equity Total liabilities and stockholders' equity S 166.5 29.9 970.1 $1,166.5 Beginning-of-Year Balances Total assets Total stockholders' equity Current liabilities Total liabilitics $1,027.3 830.7 187.9 196.6 S860.4 561.7 285.6 298.7 Other Data Average net accounts receivable Average inventory Net cash provided by operating activities Capital expenditures Dividends $293.2 239.1 124.5 34.3 20.9 $196.1 194.3 38.6 30.5