Question: Compare ratios and comment on results Selected financial data for two intense competitors in a recent year follow (amounts in millions): Zeus Corporation Mars Company
Compare ratios and comment on results Selected financial data for two intense competitors in a recent year follow (amounts in millions):
| Zeus Corporation | Mars Company | |||
| Statement of income data: | ||||
| Net sales | $3,339 | $6,772 | ||
| Cost of goods sold | 2,991 | 5,753 | ||
| Selling and administrative expenses | 88 | 412 | ||
| Interest expense | 140 | 188 | ||
| Other expenses | 8 | 0 | ||
| Income taxes | 56 | 107 | ||
| Net income | $56 | $312 | ||
| Statement of cash flows data: | ||||
| Net cash inflow from operating activities | $122 | $239 | ||
| Net increase in cash during the year | 10 | 37 | ||
| Statement of financial position data: | ||||
| End-of-year balances: | ||||
| Current assets | $1,012 | $1,636 | ||
| Property, plant, and equipment (net) | 1,867 | 2,945 | ||
| Other assets | 715 | 1,030 | ||
| Total assets | $3,594 | $5,611 | ||
| Current liabilities | $584 | $821 | ||
| Long-term debt | 2,215 | 3,107 | ||
| Total shareholders equity | 795 | 1,683 | ||
| Total liabilities and shareholders equity | $3,594 | $5,611 | ||
| Beginning-of-year balances: | ||||
| Total assets | $3,250 | $5,196 | ||
| Total shareholders equity | 747 | 1,242 | ||
| Other data: | ||||
| Average net receivables | $345 | $787 | ||
| Average inventory | 286 | 570 |
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