Repeat question 24 for return on total assets (ROA).

Question 24

You are given the following financial ratios for Johnson & Johnson and for the pharmaceutical industry:

(a) Draw a line chart showing the current ratio over time for the industry and for J&J, and compare the two.

(b) Use a bar graph to present the data for the industry and J&J’s current ratio.

Transcribed Image Text:

Year 79 80 81 82 83 84 85 86 87 88 Year 79 80 81 82 83 84 85 86 87 88 Current ratio Industry 2.30 2.29 2.18 2.12 2.12 2.09 2.19 1.91 1.86 1.93 ROA Industry .11 .11 .10 .11 .11 .10 .10 .10 .09 .12 J&J 2.73 2.55 2.50 2.50 2.66 2.41 2.47 1.40 1.86 1.88 J&J .12 .12 .12 .12 .11 .11 .12 .06 .13 .14 Inventory Turnover Industry 2.17 2.22 2.34 2.30 2.34 2.40 2.27 2.38 2.24 2.27 Pricelearnings Industry 12.04 15.03 28.02 15.19 14.56 14.88 17.98 23.46 35.09 15.98 J&J 2.71 2.70 2.78 2.38 2.28 2.37 2.45 2.33 2.27 2.32 J&J 13.76 15.35 14.79 17.79 15.90 13.14 15.66 35.47 15.50 14.88