The following table provides the net earnings, total assets, and total liabilities for four companies from two

Question:

The following table provides the net earnings, total assets, and total liabilities for four companies from two different industries. The data are for the fiscal years ending in 2006. All numbers are millions of dollars.


The following table provides the net earnings, total assets, and


Required
a. Briefly explain which company appears to be using its assets most efficiently. Be sure to include the computations of ratios you used to reach your conclusions.
b. Briefly explain which company appears to be earning the best return for its owners. Be sure to include the computations of ratios you used to reach your conclusions.
c. Briefly explain which company appears to have the greatest financial risk. Be sure to include the computations of ratios you used to reach yourconclusions.

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Survey of Accounting

ISBN: 978-0073379555

2nd edition

Authors: Edmonds, old, Mcnair, Tsay

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