Current Attempt in Progress

(Compare ratios and comment on results) Selected financial data for two intense competitors in a recent year follow (amounts in millions):

		Eonline Corporation		Paperky Company
Statement of income data:
Net sales		$9,439		$4,667
Cost of goods sold		7,956		4,137
Selling and administrative expenses		578		129
Interest expense		521		182
Other expenses		25		10
Income taxes		155		89
Net income		$204		$120
Statement of cash flows data:
Net cash inflow from operating activities		$728		$351
Net increase in cash during the year		110		29
Statement of financial position data:
End-of-year balances:
Cash		$308		$424
Other current assets		1,951		1,001
Long-term assets		5,537		3,588
Total assets		$7,796		$5,013
Current liabilities		$1,099		$797
Long-term debt		4,439		3,106
Total shareholders equity		2,258		1,110
Total liabilities and shareholders equity		$7,796		$5,013
Beginning-of-year balances:
Total assets		$7,270		$4,531
Total shareholders equity		1,755		1,053
Other data:
Average net receivables		$1,105		$649
Average inventory		806		509

(a) For each company, calculate the following ratios: (Round accounts receivable turnover, inventory turnover and current ratio to 2 decimal places, e.g. 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, return on equity, cash flows to total liabilities, gross margin and profit margin to 1 decimal place, e.g. 14.8 or 13.5%.)

i.		Average collection period for receivables
ii.		Days to sell inventory
iii.		Current ratio
iv.		Net debt as a percentage of total capitalization
v.		Interest coverage (depreciation expense was $411 for Eonline and $260 for Paperky)
vi.		Return on assets
vii.		Return on equity
viii.		Cash flows to total liabilities
ix.		Gross margin
x.		Profit margin

				Eonline Corporation			Paperky Company
i.		Average collection period		Enter a number of days rounded to 1 decimal place.	days		Enter a number of days rounded to 1 decimal place.	days
ii.		Days to sell inventory		Enter a number of days rounded to 1 decimal place.	days		Enter a number of days rounded to 1 decimal place.	days
iii.		Current ratio		Enter current ratio rounded to 2 decimal places.			Enter current ratio rounded to 2 decimal places.
iv.		Net debt as a percentage of total capitalization		Enter net debt as a percentage of total capitalization rounded to 2 decimal places.			Enter net debt as a percentage of total capitalization rounded to 2 decimal places.
v.		Interest coverage		Enter a number of times rounded to 1 decimal place.	times		Enter a number of times rounded to 1 decimal place.	times
vi.		Return on assets		Enter percentages rounded to 1 decimal place.	%		Enter percentages rounded to 1 decimal place.	%
vii.		Return on equity		Enter percentages rounded to 1 decimal place.	%		Enter percentages rounded to 1 decimal place.	%
viii.		Cash flows to total liabilities		Enter percentages rounded to 1 decimal place.	%		Enter percentages rounded to 1 decimal place.	%
ix.		Gross margin		Enter percentages rounded to 1 decimal place.	%		Enter percentages rounded to 1 decimal place.	%
x.		Profit margin		Enter percentages rounded to 1 decimal place.	%		Enter percentages rounded to 1 decimal place.	%