Review the 2 following annual reports from 2006:
- Go and view the Company A 2006 Annual Report.
- Go and view the Company B 2006 Annual Report.
For each firm, calculate the following:
• Current ratio
• Acid-test ratio
• Debt ratio
• Debt/Equity ratio
• Gross profit margin
• Inventory turnover
• Return on assets
• Return on total equity
Explain the ratios.