Attached.

Cost of good sold to
sales
COGS/sales
percentage
2009
0.625
62.50%
2010
0.5357
53.57%
The profitability is increasing since the ratio has
reduced from 0.625 to 0.5357
b) selling and
administrative
expenses to sales
S&A/Sales
percentage
2009
0.075
7.50%
2010
0.0643
6.43%
The selling and administrative expense to sales ratio is
increasing profitability since the ratio has decresed from 7.5%
to 6.43%
c)Interest expense
to sales
interest/sales
Percentage
2009
0.015
1.50%
2010
0.0125
1.25%
The interest expense to sales ratio is increasing profitability

Return on stakeholders equity= Net income/stakeholders equity
Cable corporation
Multimedia Inc.
B)
Net income/sales
Net income/total assets
Sales/Total assets
Debt/total assets

0.12
0.222222

12.00%
22.22%

Cable corporation
Multimedia Inc.
0.1
10.00%
0.05
5.00%
0.075
7.50% 0.111111
11.11%
0.075
7.50% 2.222222 222.22%
0.375
37.50%
0.5
50.00%

C)
The Return on Equity is determined by net income and the stockholder's equity.
Multimedia Inc has a better net income compared to cable corporation.
The stockholders equity is almost double in multimedia too.
Cable corporation may have better net income to sales ratio but Multimedia has
bigger sales volume which affect the return on equity

Accounts receivable turnover
4000000/800000=
5

=Sales/Accounts receivable

Inventory turnover = sales/inventory
4000000/400000
10
Fixed asset turnover=sales/net plant &equipment
4000000/500000
8

Total asset turnover= sales/total assets
4000000/1800000
2.22
B)
Accounts receivable turnover
5000000/900000
5.56
Inventory turnover = sales/inventory
5000000/975000
5.13
Fixed asset turnover=sales/net plant &equipment
500000/500000
10
Total asset turnover= sales/total assets
5000000/2475000
2.02

C) The total asset turnover declined from 2.22 to 2.02 due to reduction
i...