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Ratio Analysis
The following information concerns two competitors, Albertson Ltd. and Celtic Corp.
Balance Sheets
Albertson
Celtic
ASSETS
Cash and marketable securities
$
79,580
152,594
Accounts receivable
45,477
81,233
Inventory
213,210
47,326
Net capital assets
212,290
222,290
Total assets
550,557
503,443
LIABILITIES AND SHAREHOLDERS' EQUITY
Short-term bank loans
60,146
22,032
Accounts payable
61,276
24,360
Accruals
39,028
20,278
Long-term debt
102,116
143,555
Common shares
201,826
195,408
Retained earnings
86,165
97,810
Total liabilities and shareholders' equity
Income Statements
Sales
771,201
817,666
Cost of goods sold
620,954
671,782
Gross margin
150,247
145,884
Selling and administrative expenses
56,276
66,290
Amortization
27,014
26,632
Miscellaneous expenses
8,919
14,228
EBIT
58,038
38,734
Interest on short-term debt
6,015
2,040
Interest on long-term debt
12,945
14,016
EBT
39,078
22,678
Taxes
8,770
5,632
Net income
30,308
17,046
Calculate the financial ratios for both firms required to answer each of the following questions. Show all your calculations and explain your answer.
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