Nucor and AK Steel are steel manufacturers. Nucor produces steel in mini-mills. Mini-mills transform scrap ferrous metals into standard sizes of rolled steel, which Nucor then sells to steel service centers and distributors. Its steel falls on the lower end in terms of quality (strength and durability). AK Steel is an integrated steel producer, transforming ferrous metals into rolled steel and then into various steel products for the automobile, appliance, construction, and other industries. Its steel falls on the higher end in terms of quality. Exhibit 4.25 sets forth various data for these two companies for two recent years.

REQUIRED
a. Calculate the accounts receivable turnovers for Nucor and AK Steel for Year 1 and Year 2.
b. Describe the likely reasons for the differences in the accounts receivable turnovers for these two firms.
c. Describe the likely reasons for the trend in the accounts receivable turnovers of these two firms during the two-year period.
d. Calculate the inventory turnovers for Nucor and AK Steel for Year 1 and Year 2.
e. Describe the likely reasons for the differences in the inventory turnovers of these two firms.
f. Describe the likely reasons for the changes in the inventory turnovers of these two firms during the two-year period.

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Exhibit 4.5 Calculations of Unadjusted and Adjusted ROA for Starbucks (total assets data from Appendix C and archived 2013 Starbucks financial statements; adjusted net income data from Exhibit 4.4) 2015 2014 2013 Total assets-beginning of year Total assets-end of year Average total assets $ 8,219.2 $10,752.9 $11,516.7 11,516.7 12,446.1 10,752.9 11,599.5 11,134.8 9,868.0 2,068.1 Net income attributable to Starbucks 2,757.4 8.3 Adjusted net income attributable to Starbucks Interest expense 2,543.2 1,818.0 2,055.0 70.5 64.1 28.1 Net income+ (1 – 0.35) × Interest expense + Noncontrolling interest Adjusted net income Noncontrolling interest ROA (unadjusted) ROA (adjusted) 2,805.1 2,109.4 27.1 .35) × Interest expense + 2,096.2 2,591.0 1,836.7 24.2% 18.9% 0.3% 18.6% 22.3% 18.8%