The following information relates to Costco Wholesale Corporation and Wal-Mart Stores, Inc., for their 2012 and 2011 fiscal years.

Required
a. Compute the following ratios for the companies€™ 2012 fiscal years:
(1) Current ratio.
(2) Average days to sell inventory. (Use average inventory.)
(3) Debt to assets ratio.
(4) Return on investment. (Use average assets and use €œearnings from continuing operations€ rather than €œnet earnings.€)
(5) Gross margin percentage.
(6) Asset turnover. (Use average assets.)
(7) Return on sales. (Use €œearnings from continuing operations€ rather than €œnet earnings.€)
(8) Plant assets to long-term debt ratio.
b. Which company appears to be more profitable? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.
c. Which company appears to have the higher level of financial risk? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.
d. Which company appears to be charging higher prices for its goods? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.
e. Which company appears to be the more efficient at using its assets? Explain your answer and identify which ratio(s) from Requirement a you used to reach yourconclusion.

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COSTCO WHOLESALE CORPORATION Selected Financial Information Amounts in millions, except per share amounts) September 2, August 28 2 Total current assets Merchandise inventory Property and equipment, net of depreciation Total assets Total current liabilities Total long-term liabilities Total liabilities Total shareholders' equity Revenue Cost of goods sold $13,526 6,638 12,961 2,362 99,137 88,915 77,739 12,314 2,759 Operating income Eamings from continuing operations before income tax expense Income tax expense Net earnings Basic eanings per share 1,767 WAL-MART STORES, INC. Selected Financial Information (Amounts in millions except per share data) January 31 January 31 2 Total current assets Merchandise inventory Property and equipment, net of depreciation Total assets Total current liabilities Total long-term liabilities Total liabilities Total stockholders' equity Revenues Cost of goods sold S 54,975 40,714 112,324 193,406 62,300 55,345 117,645 36,318 107,878 180,663 109,416 7 4 7 446,950 335,127 111,823 26,558 421,849 106,562 25,542 Operating income Eamings from continuing operations before income taxes 24,398 23,538 x expens Net earnings Basic earnings per share 16,387