1. Briefly analyze the data provided in Exhibit 1for each of the four potential suppliers. (Compare the figures with
Industry averages where necessary.)
2. On the basis of the information contained in Exhibit1, which potential supplier looks most attractive?
Why
EXHIBIT1
Comparative Financial and Other Data on Potential Suppliers

Kruger $593.70 75.80 $32.98 7.15 Capozzi $1850.05 212.90 $55.98 6.45 Ind. Avg. Reese Payne $253.80 20.63 $11.63 Previous year's sales (in millions) Net fixed assets (in millions) |Current stock price Price eamings ratio | Liquidity ratios: Current ratio Quick ratio Activity ratios: Average collection period Inventory turnover Fixed asset turnover Profit ability ratios: Gross profit margin Net profit margin Return on equity Return on investment Debt ratio Times interest earmed Other data: R&D expenditure (as a% of sales) Installed capacity $6548.00 1091.80 $63.77 18.50 34.5 12.00 2.12 2.56 1.78 2.19 1.89 1.14 1.02 0.99 1.28 1.08 28days 11.96 7.83 29days 12.65 6.00 26days 12.34 8.69 37days 18.25 12.30 30days 12.50 5.80 15.8% 6.78% 18.6% 15.4% 7.35% 12.8% 13.8% 14.6% 6.57% N/A 16.8% 9.48% 16.6% 14.56% 8.6% 18.7% 12.5% 0.65 2.6 14.2% 14.75% 8.7% 0.14 0.5 0.45 0.5 9.6 6.0 8.5 16.8 2.30 97% 4.67 8.29 88% 95.1% 5.5 85% 97.3% 32.1% 3.9 N/A 95% 91% 102% N/A Sales growth (3years) Price quoted 8.2% 18.82% 11.67% N/A $250.00 $275.00 $245.00 $240.00