Mulligan Corporation’s financial statements are as follows:

Required:
1. Compute the return on total assets.
2. Compute the return on equity.
3. Is Mulligan’s financial leverage positive or negative? Explain.
4. Compute the current ratio.
5. Compute the acid-test ratio.
6. Compute the inventory turnover.
7. Compute the average sale period.
8. Compute the debt-to-equity ratio.
9. Compute the total asset turnover.
10. Compute the net profit margin percentage.

Transcribed Image Text:

Assets Current assets: Cash Mulligan Corporation Comparative Balance Sheet (dollars in millions) Marketable securities.. Accounts receivable Inventories... Other current assets. Total current assets Property and equipment, net Other assets Total assets Llabilities and Stockholders' Equity Current liabilities: Accounts payable. Short-term bank loans Accrued liabilities Other current liabilities Total current liabilities.. Long-term liabilities Total liabilities.. Stockholders' equity: Common stock and additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity. This Last Year Year $ 281 $ 313 157 141 288 224 692 636 278 216 1,696 1,530 2,890 2,288 758 611 $5,344 $4,429 $ 391 $ 341 710 700 757 662 298 233 2,156 1,936 904 265 3,060 2,201 40 40 2,244 2,188 2,284 2,228 $5,344 $4,429