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Item4

Item 4 12.5 points

Presented below are condensed financial statements adapted from those of two actual companies competing in the pharmaceutical industryBenatar and Jett, Inc. ($ in millions, except per share amounts).

Balance Sheets ($ in millions, except per share data)
	Benatar				Jett
Assets:
Cash	$	17,461			$	11,831
Short-term investments		6,267				12,523
Accounts receivable (net)		9,039				11,240
Inventory		5,880				9,859
Other current assets		5,945				5,810
Current assets		44,592				51,263
Property, plant, and equipment (net)		15,898				24,339
Intangibles and other assets		19,774				73,099
Total assets	$	80,264			$	148,701
Liabilities and Shareholders' Equity:
Accounts payable	$	7,261			$	4,896
Short-term notes		5,066				12,745
Other current liabilities		9,468				14,363
Current liabilities		21,795				32,004
Long-term debt		5,080				7,880
Other long-term liabilities		7,082				24,077
Total liabilities		33,957				63,961
Common stock (par and additional paid-in capital)		5,670				69,600
Retained earnings		49,788				48,167
Accumulated other comprehensive income (loss)		(930	)			280
Less: Treasury stock and other equity adjustments		(8,221	)			(33,307	)
Total shareholders' equity		46,307				84,740
Total liabilities and shareholders' equity	$	80,264			$	148,701
Income Statements
Net sales	$	50,957			$	54,283
Cost of goods sold		14,318				11,974
Gross profit		36,639				42,309
Operating expenses		21,837				30,560
Other (income) expensenet		(640	)			3,865
Income before taxes		15,442				7,884
Income tax expense		4,633				2,365
Net income	$	10,809			$	5,519	*
Basic net income per share	$	3.27			$	0.43

* This is before income from discontinued operations. Evaluate and compare the two companies by responding to the following questions. Note: Because two-year comparative statements are not provided, you should use year-end balances in place of average balances as appropriate. Required: 1. For both companies, compute the ratios below. (Consider 365 days a year. Do not round intermediate calculations. Round "Asset Turnover" answers to 3 decimal places and other final answers to 2 decimal places.)

Benatar Jett Receivables Turnover times times Average Collection Period days days Inventory Turnover times times Average Days in Inventory days days Profit Margin % % Asset Turnover times times Return on Assets % % Equity Multiplier Return on Equity % %