Compute the ratio of net income to sales for each company

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Reference no: EM131815653

Question: Comparing Cash Flows Across Retailers

Following are selected accounts from the income statement and the statement of cash ?ows for several retailers, for their ?scal years ended in 2013

Required: a. Compute the ratio of net income to sales for each company. Rank the companies on the basis of this ratio. Do their respective business models give insight into these differences?

b. Compute net cash ?ows from operating activities as a percentage of sales. Rank the companies on the basis of this ratio. Does this ranking coincide with the ratio rankings from part a? Suggest one or more reasons for any differences you observe.

c. Compute net cash ?ows from investing activities as a percentage of sales. Rank the companies on the basis of this ratio. Does this ranking coincide with the ratio rankings from part a? Suggest one or more reasons for any differences you observe.

d. All of these companies report negative cash ?ows from ?nancing activities. What does it mean for a company to have net cash out?ow from ?nancing?

Reference no: EM131815653

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