AGF Foods Company is a large, primarily domestic, consumer foods company Involved in the manufacture, distribution, and sale of avariety of food products. Industry averages are derived from Troy's The Almanac of Business and Industrial Financial Ratios and Dunand Bradstreet's Industry Norms and Key Business Ratios. Following are the 2024 and 2023 comparative Income statements andbalance sheets for AGF. The market price of AGF's common stock is $47 at the end of 2024. (The financial data we use are from actualfinancial statements of a well-known corporation, but the company name used in our illustration is fictitious and the numbers and dateshave been modified slightly to disguise the company's Identity:)Profitability is the key to a company's long-run survival. Profitability measures focus on a company's ability to provide an adequatereturn relative to resources devoted to company operations.($ in millions)AGF FOODS COMPANYYears Ended December 31, 2024 and 20232024Comparative Income Statements$ 6,440(3,667)Net salesCost of goods soldGross profitOperating expensesOperating incomeInterest expenseIncome from operations before taxIncome taxesNet incomeAverage shares outstandingComparative Balance SheetsCurrent assets:CashAccounts receivableMarketable securitiesInventoriesPrepaid expensesTotal current assets20232,773$ 5,800(3,389)2,411(1,629)(1,916)857(54)803(316)$487181 millionAssetsProperty, plant, and equipment (net)Intangibles (net)Other assets782(53)729(287)$ 442181 million$ 48$1423473203589148742121541,8791,4902,5922,291вее74$ 5,34584360$ 4,684Total assetsLiabilities and Shareholders' EquityCurrent liabilities:Accounts payableAccrued liabilitiesCurrent portion of long-term debtNotes payableTotal current liabilitiesLong-term debtDeferred Income taxesTotal liabilitiesShareholders' equity:Common stock, $ 1 parAdditional paid-in capitalRetained earningsTotal shareholders' equityTotal liabilities and shareholders' equityRequired:$254$ 276493496518115288541,4739415347284073442,4142,01318018021632,7302,4282,931$5,3452,671$ 4,6841. Calculate the return on shareholders' equity for AGF. The average return for the stocks listed on the New York Stock Exchange Ina comparable period was 18.8%Note: Round your answer to 1 decimal place.2. Calculate the return on assets for AGF.Note: Do not round Intermediate calculations. Round your answer to 1 decimal place.3. Calculate AGF's earnings per share. The average return for the stocks listed on the New York Stock Exchange in a comparabletime period was 5.4%Note: Round your answer to 2 decimal places.4. Calculate AGF's earnings-price ratio.Note: Round your answer to 1 decimal place.1. Return on shareholders' equity2. Return on assets3. Earnings per share4. Earnings-price ratio%%%

Financial ratio:Financial ratio refers to the mathematical relationship between the two line items…

AGF Foods Company is a large, primarily domestic, consumer foods company Involved in the manufacture, distribution, and sale of a variety of food products. Industry averages are derived from Troy's The Almanac of Business and Industrial Financial Ratios and Dun and Bradstreet's Industry Norms and Key Business Ratios. Following are the 2024 and 2023 comparative Income statements and balance sheets for AGF. The market price of AGF's common stock is $47 at the end of 2024. (The financial data we use are from actual inancial statements of a well-known corporation, but the company name used in our Illustration is fictitious and the numbers and dates mave been modified slightly to disguise the company's Identity:) Profitability is the key to a company's long-run survival. Profitability measures focus on a company's ability to provide an adequate eturn relative to resources devoted to company operations. AGF FOODS COMPANY Years Ended December 31, 2024 and 2023 ($ in millions) Comparative Income Statements Net sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income from operations before tax Income taxes Net income Average shares outstanding Comparative Balance Sheets Current assets: Cash Accounts receivable Marketable securities Inventories Prepaid expenses Total current assets 2024 2023 $6,440 (3,667) $5,800 (3,389) 2,773 2,411 (1,916) (1,629) 857 782 (54) (53) 803 729 (316) (287) $487 $442 181 million 181 million Assets $ 48 347 $142 320 358 914 874 212 154 1,879 1,490 Property, plant, and equipment (net) 2,592 2,291 Intangibles (net) 800 843 Other assets 74 Total assets $5,345 $4,684 Liabilities and Shareholders' Equity Current liabilities: Accounts payable Accrued liabilities Current portion of long-term debt Long-term debt Notes payable Total current liabilities Deferred income taxes Total liabilities Shareholders' equity: Connon stock, $1 par Additional paid-in capital Retained earnings Total shareholders' equity Total liabilities and shareholders' equity $254 $276 493 496 518 115 208 54 1,473 941 534 728 407 344 2,414 2,013 180 180 21 63 2,730 2,931 $5,345 2,428 2,671 $4,684 Required: 1. Calculate the return on shareholders' equity for AGF. The average return for the stocks listed on the New York Stock Exchange In a comparable period was 18.8% Note: Round your answer to 1 decimal place. 2. Calculate the return on assets for AGF. Note: Do not round intermediate calculations. Round your answer to 1 decimal place. 3. Calculate AGF's earnings per share. The average return for the stocks listed on the New York Stock Exchange in a comparable time period was 5.4% Note: Round your answer to 2 decimal places. 4. Calculate AGF's earnings-price ratio. Note: Round your answer to 1 decimal place. 1. Return on shareholders' equity 2. Return on assets 3. Earnings per share 4 Famins-ricerato % %