Presented below are condensed financial statements adapted from those of two actual companies competing as the primaryplayers in a specialty area of the food manufacturing and distribution Industry. ($ In millions, except per share amounts.]CashAccounts receivable (not)Short-term investmentsInventoriesPrepaid expenses and other current assetsCurrent asselsProperty, plant, and equipment (net)Intangibles and other assetsTotal assolsLiabilities and Shareholders' EquityAccounts payableShort-term notesAccruals and other current abilitiesCurrent SabinesLong-term debeDeferred tax liabilityOther long-term BablitesTotal liablitiesCommon stock (par and additional paid in capital)Retained eamingsLoss Treasury stockBalance SheetsTotal labilties and shareholders' equityIncome StatementsNot salesCost of goods soldGross proftOperating expensesInterest expenseIncome before taxesTax expenseNot IncomeNet Income per shareMetropolitan RepublloReturn on AssetsProfit MarginAsset TumoverReturn on Shareholders' EquityEquity MultiplierAcid-Test RatioCurrent RaboReceivables TumoverInventory TurnoverTimes Interest Eamed5$555.4207.6$ 1,545.0 $1,741.12,698.22,6126288.3583.0$4,531.5 $4,941.8274.3 S507.7564.9 S$$678.2616.5$ 1,547.2 S$ 2,030.1639.6466.6223.92,660.91,226.5 S(299.7)926.8 S1.5 S43.0407.017403]$4,531.5 $49418Required:1. For both companies compute the ratios on the next page2. Evaluate and compare the two companies in the space provided711.2571-7$5,787.0 $ 7,850.2(2.825.01 14.395.7$ 2,962.0 $3,454.5(1,653.7) (2,738.2)7782Metropolitan%Dimes96.Evaluate and compare the two companies by responding to the following questionsNote: Because comparative statements are not provided you should use year-end balances in place of average balances asappropriatetimestimes693.743300148.61657.7(9941568087.6Republictimestimestimessimes

Ratios are used to determine an entity's financial performance and financial health. Ratios are…

Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and distribution Industry. ($ In millons, except per share amounts.] Assets Cash Accounts receivable (not) Short-term investments Inventories Prepaid expenses and other current assets Current assets Property, plant, and equipment (net) Intangibles and other assets Total assets Liabilities and Shareholders' Equity Accounts payable Short-term notes Apcruals and other current Ilabilities Current Sabines Long-term debt Deferred tax liability Other long-term abilities Total lablities Common stock (par and additional paid-in capital) Retained earnings Loss: Treasury stock Total labilties and shareholders' equity Income Statements Net sales Cost of goods sold Gross profit Operating expenses Interest expense Income before taxes Balance Sheets Tax expense Net Income Net Income per share Return on Assets Profil Margin Asset Tumover Metropolitan Republic Return on Shareholders' Equity Equity Multiplier Acid-Test Ratio Current Ratio Receivables Turnover Inventory Tumover Times Interest Eamed $ $ 274.3 S 507.7 555.4 207.6 $ 1,545.0 $1,741.1 2,698.2 2,6126 288.3 588.0 $4,531.5 $4,941.8 564.9 $ 778.2 304.1 635.4 678.2 616.5 $ 1,547.2 $ 2,030.1 639.6 540.3 466.6 698.7 207.0 $2.860.4 $ 3.555.2 433.0 $ $ 223.9 2,560.9 1,692.9 11.113.7) (740.3) $4,531.5 $4,941.8 43.0 407.0 8.2 711.2 571.7 $ 5,787.0 $7,850.2 12.825.01 14.395.7 2,962.0 $3,454.5 (1,653.7) (2,738.2) $ $ 1,226.5 $ (299.7) 926.8 $ 1.5 S 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 average balanced 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 (48.6) 657.7 (99.1) 568.6 7.6 Metropolitan % times % times times times in E Republic % times ames M timers simes