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Assets
Cash	$	274.3			$	43.0
Accounts receivable (net)		507.7				407.0
Short-term investments						8.2
Inventories		555.4				711.2
Prepaid expenses and other current assets		207.6				571.7
Current assets	$	1,545.0			$	1,741.1
Property, plant, and equipment (net)		2,698.2				2,612.6
Intangibles and other assets		288.3				588.0
Total assets	$	4,531.5			$	4,941.8
Liabilities and Shareholders Equity
Accounts payable	$	564.9			$	778.2
Short-term notes		304.1				635.4
Accruals and other current liabilities		678.2				616.5
Current liabilities	$	1,547.2			$	2,030.1
Long-term debt		639.6				640.3
Deferred tax liability		466.6				698.7
Other long-term liabilities		207.0				187.1
Total liabilities	$	2,860.4			$	3,556.2
Common stock (par and additional paid-in capital)		223.9				433.0
Retained earnings		2,560.9				1,692.9
Less: Treasury stock		(1,113.7	)			(740.3	)
Total liabilities and shareholders equity	$	4,531.5			$	4,941.8
Income Statements
Net sales	$	5,787.0			$	7,850.2
Cost of goods sold		(2,825.0	)			(4,395.7	)
Gross profit	$	2,962.0			$	3,454.5
Operating expenses		(1,653.7	)			(2,738.2	)
Interest expense		(81.8	)			(48.6	)
Income before taxes	$	1,226.5			$	667.7
Tax expense		(299.7	)			(99.1	)
Net income	$	926.8			$	568.6
Net income per share	$	1.5			$	7.6

Evaluate and compare the two companies by responding to the following questions. Note: Because comparative statements are not provided you should use year-end balances in place of average balances as appropriate. Required: 1. For both companies, compute the ratios on the next page 2. Evaluate and compare the two companies in the space provided

Metropolitan Republic Return on Assets % % Profit Margin % % Asset Turnover times times Return on Shareholders' Equity % % Equity Multiplier Acid-Test Ratio Current Ratio Receivables Turnover times times Inventory Turnover times times Times Interest Earned times times

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