Problem 5 Suppose selected financial data for Stanley Black & Decker, Inc. and Snap-On Tools for 2014 are presented here (in millions). Stanley Black Snap-On & Decker Tools Income Statement Data for Year Net sales $3,737.1 $2,420.8 Cost of goods sold 2,228.8 1,345.7 Selling and administrative expenses 1,208.2 824.4 Interest expense 63.7 47.7 Other income (loss) 42.4 (6.1) Income tax expense 54.5 62.7 Net income $ 224.3 $ 134.2 Balance Sheet Data (End of Year) Current assets $1,411.9 $1,676.1 Property, plant, and equipment (net) 575.9 347.8 Other assets 2,781.3 1,423.5 Total assets $4,769.1 $3,447.4 Current liabilities $1 192.0 $ 739.9 Long-term debt 1,591.0 1,417.5 Total stockholders' equity 1,986.1 1,290.0 Total liabilities and stockholders' equity $4,769.1 $3,447.4 Beginning-of-Year Balances Total assets $4,866.6 62,710.3 Total stockholders' equity 1,706.3 1,186.5 Current liabilities 1,193.2 547.5 Total liabilities 3,160.3 1,523.8 Other Data Average accounts receivable (net) 604.9 $ 612.7 Average inventory 440.5 316.9 Net cash provided by operating activities 539.4 347.1 Capital expenditures 72.9 64.4 Cash dividends 103.6 59.0 Instructions (a) For each company, compute the following ratios. (1) Current ratio. (8) Return on assets. (2) Accounts receivable turnover. (9) Return on common stockholders' equity. (3) Average collection period. (10) Debt to assets. (4) Inventory turnover. (11) Times interest earned. (5) Days in inventory. (12) Current cash debt coverage. (6) Profit margin. (13) Cash debt coverage. (7) Asset turnover. (14) Free cash flow. (b) Compare the liquidity, solvency, and profitability of the two companies