Financial Accounting
Financial Accounting
5th Edition
ISBN: 9781618531650
Author: Thomas Dyckman
Publisher: Cambridge Business Publishers
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Chapter 1, Problem 48CP

a.

To determine

Compute the return on equity ratio for company J and company S for the year 2013 and indicate the company that earned a higher return for its shareholders.

b.

To determine

Compute the debt-to-equity ratio for company J and company S as of December 31, 2013 and indicate the company that relies more on creditor financing.

c.

To determine

Compute the net income as a percentage of revenue in 2013 for both companies.

d.

To determine

Compare the ratios of both competitors and indicate the cause for the differences in the ratios.

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