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- 1 Checked Peer Comparison 2 3 4 Given 5 6 Partial Balance Sheet This Year Partial Balance Sheet Prior Year 7 Firm 1 8 Partial Income 9 Statement This Year 10 Sales 11 COGS 12 43,900 31.170 Inventory Inventory 1,516 1,853 Debt St Equity 11,000 3,209 4,761 13 Assets 3,510 Partial Balance Sheet This Year Partial Balance Sheet Prior Year 14 15 16 Net Income 17 18 19 Firm 2 20 Partial Income 21 Statement This Year 22 Sales 23 COGS 24 25 26 22 28 Net Income 29 30 31 4.800 3,500 Inventory Inventory 153 200 Debt St Equity 1,880 311 978 Assets 530 30 31 32 Peer Comparison Continued 33 34 35 Firm 3 36 Partial Income 37 Statement This Year 38 Sales 39 COGS 40 Partial Balance Sheet This Year Partial Balance Sheet Prior Year 4,600 2,940 Inventory Inventory 172 186 Debt St Equity 880 427 254 41 Assets 42 600 42 44 Net Income 45 46 47 Firm 4 48 Partial Income 49. Statement This Year SO Sales 51 COGS 52 53 Partial Balance Sheet This Year Partial Balance Sheet Prior Year 8,500 6,380 Inventory 432 Inventory 316 366 Debt St Equity 2,030 844 Assets 54 55 SG Net Income 1.700 57 58 63 84 Peer Comparison Continued 65 66 Please fill in the following table: 67 ROE DIE AT IT 68 Firm 1 69 Firm 2 70 Firm 3 71 Firm 4 72 73 Where: 74 ROE = Return on Equity Ratio 75 D/E = Debt Equity Ratio 76 AT = Asset Turnover (use Sales and Total Assets) 77 IT = Inventory Turnover Ratio (use COGS and average Inventory) 79 79 After some thought, you decide to assign points as follows: 801 point for the highest ROE 81 1 point if the D/E is moderate (neither the highest nor the lowest) B2 1 point if AT is the highest 831 point if the IT is the highest 84 85 Which firm has the most value (most points)? 86 A Firm 1 87 B Firm 2 88 C Firm 3 89 D Firm 4 90 91

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