Assume the following data for Cable Corporation and Multi-Media Inc.
Cable Corporation:
Net income- $35,800
Sales- 346,000
Total assets- 449,000
Total debt- 201,000
Stockholders equity- 248,000
Multi- Media Inc.
Net Income- $128,000
Sales- 2,700,000
Total assets- 929,000
Total debt- 523,000
Stockholders equity- 406,000
A) Question: Compute return on stockholders equity for both firms.
B) Compute the following additional ratios for both firms.
Net income/sales
Net income/total assets
Sales/total assets
debt/total assets