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 millions, except per share amounts.) Metropolitan and Republic , metro numbers first.
Metropolitan Republic
Assets $ 179.3 $ 37.1
Cash
Accounts receivable (net)
422.7 325.0
Short-term investments- 4.7
Inventories 466.4 635.2
Prepaid expenses and other current assets 134.6 476.7
Current assets $ 1,203.0 $ 1,478.7
Property, plant, and equipment (net) 2,608.2 2,064.6
Intangibles and other assets 210.3 464.7
Total assets $ 4,021.5 $ 4,008.0
Liabilities and Shareholders' Equity
Accounts payable $ 467.9 $ 691.2
Short-term notes 227.1 557.4
Accruals and other current liabilities 585.2 538.5
Current liabilities $ 1,280.2 $ 1,787.1
Long-term debt 535.6 542.3
Deferred tax liability 384.6 610.7
Other long-term liabilities 104.0 95.1
Total liabilities $ 2,304.4 $ 3,035.2
Common stock (par and additional paid-in capital) 144.9 335.0
Retained earnings 2,476.9 1,601.9
Less: treasury stock (904.7 ) (964.1 )
Total liabilities and shareholders' equity $ 4,021.5 $ 4,008.0
Income Statements
Net sales $ 5,698.0 $ 7,768.2
Cost of goods sold (2,909.0 ) (4,481.7 )
Gross profit $ 2,789.0 $ 3,286.5
Operating expenses (1,743.7 ) (2,539.2 )
Interest expense (56.8 ) (46.6 )
Income before taxes $ 988.5 $ 700.7
Tax expense (394.7 ) (276.1 )
Net income $ 593.8 $ 424.6
Net income per share $ 2.40 $ 6.50
calculate the equity multipler, acid ratio, current ratio, receivables ratio, inventory turnover ration and the times interest earnes ratio