Question

Assume the following data for Cable Corporation and Multi-Media Inc Cable Multi-Media Inc. Corporation Net income Sales Total assets Total debt Stockholders equity $ 34,400 $ 128,000 2,700,000 970,000 468,000 502,000 364,000 448,000 237,000 211,000 a-1. Compute return on stockholders equity for both firms. (Input your answers as a percent rounded to 2 decimal places.) Return on Stockholders Equity Cable Corporation Multi-Media, Inc. a-2. Which firm has the higher return? Cable Corporation Multi-Media Inc b. Compute the following additional ratios for both firms. (Input your Net income/Sales, Net income/Total assets and Debt/Total asset answers as a percent rounded to 2 decimal places. Round your Sales/Total assets answers to 2 decimal places.) Cable Corporation Multi-Media Inc. Net income/Sales Net income/Total assets Sales/Total assets Debt/Total assets times times

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Answer #1

Ratios calculated as under:

Date 02.000 -2-As can be Seen /som ale e Calculation that Salex 3 64 000 mult, media TAC

e income iatal ascets Cable Casposaim 2 128000 13,201。 Sales me 2.200000 228 imes elat atal asse E 232000 52.9o muth meclia inca 1 462000-2 10.000 42.25%-

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