Chapter 15, Problem 6R

With the 2013 data still on the screen, click the Chart sheet tab. The chart presented shows the rates of return for Global Technology for the last five years. Answer the following questions:

1. a. In 2009, the rate of return on assets exceeded the rate of return on common stockholdersʼ equity. Why might this have occurred? Be as specific as possible.
2. b. Is the company better off in 2013 than it was in 2009? Why or why not?

   When the assignment is complete, close the file without saving it again.

Worksheet. Modify the RATIOA4 worksheet to have it compute two additional activity ratios: number of daysʼ sales in receivables and number of daysʼ sales in merchandise inventory. Use the 2012 and 2013 data and assume a 365-day year. Write out the formulas for your ratios in the spaces provided.

Daysʼ sales in receivables (average collection period) ________________

Daysʼ sales in inventory (average sales period) ________________

Preview the printout to make sure that the worksheet will print neatly, and then print the worksheet. Save the completed file as RATIOAT.

Chart. Using the RATIOA4 file, prepare a column chart that compares the acid test and current ratios for Global Technology for 2012 and 2013. Complete the Chart Tickler Data Table and use it as a basis for preparing the chart. Enter all appropriate titles, legends, and formats. Enter your name somewhere on the chart. Save the file again as RATIOA4. Print the chart.