The three companies are an airline a pharmaceutical company

Reference no: EM13573281

The following data show five items from the financial statements of three companies for a recent year (amounts in millions):

	Company A	Company B	Company C
For the Year
Revenues	$8,854	$9,400	$11,754
Income before interest and related taxes¹	645	1,017	610
Net income to common shareholders²	453	982	495
Average during the Year
Total assets	9,013	6,838	7,135
Common shareholders' equity	2,700	3,490	2,840

1.Net income + Interest expense × (1 ? tax rate)

2.Net income ? Preferred stock dividends

Required:

A. Compute the rate of return on assets for each company. Carry out all computations to four decimal places. Then, convert the final answer to a percent. For example: 825/1630 =.5062 is carried out to four decimal places and then entered as 50.62. Do not enter a percentage sign in your answer.

	Return on Assets
Company A:	%
Company B:	%
Company C:	%

Separate the rate of return on assets into the return on sales and the asset turnover ratio. Carry out all computations to four decimal places. For return on sales, convert the final answer to a percent. For example: 825/1630 =.5062 is carried out to four decimal places and then entered as 50.62. For asset turnover, round your answer to two decimal places. For example: .51.

	Return on Sales	Asset Turnover Ratio
Company A	%	times
Company B	%	times
Company C	%	times

B. The three companies are an airline, a pharmaceutical company, and a retail department store. Which of the companies are most likely to correspond to A, B, and C, respectively?

Company A
Company B
Company C

Reference no: EM13573281

Questions Cloud

Duggan company reported total manufacturing costs of 305000 : duggan company reported total manufacturing costs of 305000 manufacturing overhead totaling 58000 and direct materials

While the image of the soldier poet may seem like an : while the image of the soldier poet may seem like an unlikely mix the devastating effects of technological warfare

Bismarck company engaged duval tooling company to construct : on july 31 2012 bismarck company engaged duval tooling company to construct a special-purpose piece of factory

The plant and equipment are currently valued at 125000000 : silver king inc. is currently running at 60 of full capacity. the plant and equipment are currently valued at

The three companies are an airline a pharmaceutical company : the following data show five items from the financial statements of three companies for a recent year amounts in

Explain whether you agree with the opinion of many : explain whether you agree with the opinion of many parisians in 1889 that the eiffel tower was a ridiculous eyesore

A company projects an increase in net income of 180000 each : a company projects an increase in net income of 180000 each year for the next five years if it invests 900000 in new

Dyl pickle inc had credit sales of 3500000 last year and : dyl pickle inc. had credit sales of 3500000 last year and its days sales outstanding was dso 35 days. what was its

Assume instead that brian operates sigma as a sole : several years ago brian formed sigma corporation a retail company that does not qualify for the u.s. production

User Account

All Pages