Question: Application Problem 12-18A a (Compare ratios and comment on results) elected financial data for two intense competitors in a recent year follow amounts in millions
Application Problem 12-18A a (Compare ratios and comment on results) elected financial data for two intense competitors in a recent year follow amounts in millions Zeus Corporation Mars Company Statement of income data: Net sales $3.337 56.857 Cost of goods sold 2.972 5.777 Selling and administrative expenses 97 415 Interest tense 130 189 Other expenses 7 Income taxes 56 107 Net income 574 5369 Statement of cash flows data: Net cash inflow from operating activities 5:33 $276 Net increase in cash during the year 10 Statement of financial position data: End-of-year balances Current assets $1.013 $1.604 Property, plant, and equipment (net) 1.869 2.921 Other assets 72: 1.016 Total assets 53,603 55 541 Current liabilities $585 5828 Long-term debt 2.205 3.112 Total shareholders' equity 810 1.601 Total liabilities and shareholders' equity 33,603 35.541 Beginning-of-year balances: Total assets $3,271 55.151 Total shareholders' equity 757 1.251 Other datat Average net receivables $352 $791 Average inventory 295 570 (a) For each company calculate the following ratios (Round accounts receivable turnover, inventory turnover and current ratio to 2 decimal places, eg. 14.83. Round net debt as a percentage of total capitalization to 2 decimal places. e.g. 0.83. Round average collection period. days to sell inventory, interest coverage return on asset and return on equity to 1 decinal place, e.g. 14.8 or 13.59.) Average collection period for receivables . Days to sel inventory II. Current ratio IV Net debt as a percentage of total capitalization Interest coverage vi Return on assets vit. Return on equity Zeus Corporation Mars Company i Average collection period days deys 1. Days to sell inventory days . Current ratio tw. Net debt as a percentage of total capitalization Interest coverage mes vi. Retum on assets vil. Retum on equity
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