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Complete the chart and answer the questions below. Round each percentage to one decimal place, each dollar amount to two decimal places if necessary. When asked about the ratios use abbreviations (ROS, ROA, ROE)

$ in Millions	Formula	YHOO 12/31/2011	COST 8/29/2011	CAT 12/31/2011
Sales revenue		4,984	88,915	60,138
Net income		1,049	1,462	4,928
Assets		14,783	Blank 1	81,446
Liabilities		2,242	14,759	Blank 2
Stockholders equity		Blank 3	12,002	12,883
ROS	NI / Sales Revenue	Blank 4 %	1.64%	8.19%
x Asset turnover	Sales Revenue / Assets	Blank 5	3.3226	0.7384
= ROA	NI / Assets	Blank 6 %	5.46%	6.05%
x Financial leverage	Assets / SE	1.1788	Blank 7	Blank 8
= ROE	NI / SE	8.36%	Blank 9 %	Blank 10 %
Debt ratio	Liabilities / Assets	Blank 11 %	Blank 12 %	84.18%

Refer to the financial information above for Yahoo! Inc. (YHOO), Costco Wholesale Corporation (COST), and Caterpillar Inc. (CAT) to answer the following questions.

Ratio Blank 13 is the most comprehensive profitability ratio, and of the three companies, the company Blank 14 has the greatest profitability as measured by this ratio.

Compute Financial Leverage and ROE for Costco and Caterpillar and record in the chart above. The company Blank 15 reports the greatest ROE and the company Blank 16 is assuming the greatest amount of financial risk.

Costco has a debt ratio of approximately Blank 17 %, resulting in a Financial Leverage ratio of around Blank 18 ; therefore, ROE is Blank 19 times greater than ROA.

Caterpillar has a debt ratio of approximately Blank 20 %), resulting in a Financial Leverage ratio of around Blank 21 ; therefore, ROE is Blank 22 times greater than ROA.

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