Reitmans (Canada) Limited and Danier Leather Inc. are two companies with clothing stores within Canada. Selected financial data (in thousands) for these two companies for a recent year are as follows:

Instructions
1. For each company, determine the following measures, rounding to one decimal place. Industry averages are provided in parentheses after each ratio.
a. Current ratio (1.9:1)
b. Accounts receivable turnover (13.6 times)
c. Inventory turnover (5.8 times)
d. Total asset turnover (1.5 times) e. debt ratio (56%)
f. Times interest earned ratio (7.4 times)
g. Profit margin (3.1%)
h. Return on assets (4.6%)
i. Return on shareholders' equity (10.5%)
2. Compare the liquidity, efficiency, solvency, and profitability of the two companies to each other and to the industry.
3. Which company would be more appealing to an investor? Explain your decision.

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Danier Leather Reitmans Statement of Earnings Sales $157.621 $1,019,397 71,352 363,333 Cost of sales Gross profit Operating and other expenses 86.269 656.064 75.458 588,683 1.509 Interest expense 103 Income before income taxes 10.708 65.872 18,333 Income taxes 3,140 $ 7.568 47,539 Net income 2$ Statement of Financial Position Current assets $ 28,698 $ 196,835 Cash Accounts receivable 385 3.033 28.964 78.285 Inventories Other current assets 901 88,830 Total current assets 58,948 366,983 Property, plant, and equipment 14,404 184, 221 Other assets 82,657 2,732 $ 76,084 $ 12.838 $ 633,861 Total assets Current liabilities 89.132 24 Long-term liabilities Shareholders' equity 1.318 51.877 61.928 492.852 $ 76.084 $ 633,861 Total liabilities and shareholders' equity Additional Information Average accounts receivable Average inventories 464 2.950 27.617 75.743 Average total assets Average total shareholders' equity 74,833 646,609 58.097 502.826