Question: 5. Using the data in the following table for a number of firms in the same industry, do the following: %u2022a. Compute the total asset
| 5. Using the data in the following table for a number of firms in the same industry, do | ||||||
| the following: | ||||||
| %u2022a. Compute the total asset turnover, the net profit margin, the equity multiplier, | ||||||
| and the return on equity for each firm. | ||||||
| b. Evaluate each firm%u2019s performance by comparing the firms with one another. | ||||||
| Which firm or firms appear to be having problems? What corrective action | ||||||
| would you suggest the poorer performing firms take? Finally, what additional | ||||||
| data would you want to have on hand when conducting your analyses? | ||||||
| Firm | ||||||
| (in Millions of Dollars) A B C D | A | B | C | D | ||
| sales | 20 | 10 | 15 | 25 | ||
| net income after tax | 3 | 0.5 | 2.25 | 3 | ||
| total asets | 15 | 7.5 | 15 | 24 | ||
| stockholders equity | 10 | 5 | 14 | 10 | ||
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