Early in 2013, Leon's Furniture acquired its closest competitor, The Brick. Selected financial data (in thousands) for the two companies, prior to the acquisition, are presented below.

Instructions
(a) For each company, calculate the following ratios:
1. Current ratio
2. Receivables turnover
3. Inventory turnover
4. Operating cycle
5. Debt to total assets
6. Interest coverage
7. Gross profit margin
8. Profit margin
9. Asset turnover
10. Return on assets
11. Return on equity
(b) Compare the liquidity, solvency, and profitability of the two companies.
Taking It Further
How should other comprehensive loss be factored into your analysis above?

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The Brick Leon's Statement of Comprehensive Incon Net sales Cost of goods sold $1,351,648 753,977 597,671 489,532 108,139 30,979 26,844 50,316 14,443 35,873 (170) $ 35,703 $682,836 394,099 288,737 213,416 75,321 Operating expenses Profit from operations Interest expense Other non-operating expenses (income) Profit before income taxes Income tax expense Profit Other comprehensive loss Total comprehensive income (3,527) 78,848 22,182 (584) $56,082 $343,772 251,567 $595,339 $139,123 30,755 169,878 425,461 $595,339 Current assets Non-current assets $ 388,087 378,395 $ 766,482 $280,005 394,831 674,836 91,646 $ 766,482 Total assets Current liabilities Non-current liabilities Total liabilities Shareholders' equity Total liabilities and shareholders' equity Additional information: Average accounts receivable Average inventories Average total assets Average total shareholders' equity $ 28,753 86,627 581,007 417,874 $ 72,760 167,264 750,182