Presented below are condensed financial statements adapted from those of two actual companies compet

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Presented below are condensed financial statements adapted from those of two actual companies competing in the pharmaceutical industry—Benatar and Jett, Inc. ($ in millions, except per share amounts). Balance Sheets
($ in millions, except per share data) Benatar Jett Assets: Cash $ 14,733 $ 9,453 Short-term investments 5,775 12,031 Accounts receivable (net) 8,459 10,660 Inventory 5,336 8,865 Other current assets 5,325 5,190 Current assets 39,628 46,199 Property, plant, and equipment (net) 14,474 22,915 Intangibles and other assets 18,750 72,075 Total assets $ 72,852 $ 141,189 Liabilities and Shareholders' Equity: Accounts payable $ 6,721 $ 4,356 Short-term notes 4,142 11,821 Other current liabilities 8,968 13,863 Current liabilities 19,831 30,040 Long-term debt 4,580 7,380 Other long-term liabilities 6,590 23,585 Total liabilities 31,001 61,005 Common stock (par and additional paid-in capital) 5,070 69,000 Retained earnings 45,368 43,747 Accumulated other comprehensive income (loss) (850 ) 260 Less: Treasury stock and other equity adjustments (7,737 ) (32,823 ) Total shareholders' equity 41,851 80,184 Total liabilities and shareholders' equity $ 72,852 $ 141,189 Income Statements Net sales $ 48,817 $ 52,143 Cost of goods sold 13,814 11,470 Gross profit 35,003 40,673 Operating expenses 21,349 30,072 Other (income) expense—net (580 ) 3,805 Income before taxes 14,234 6,796 Income tax expense 4,270 2,039 Net income $ 9,964 $ 4,757 * Basic net income per share $ 3.07 $ 0.23

* This is before income from discontinued operations.

Evaluate and compare the two companies by responding to the following questions.

Note: Because two-year comparative statements are not provided, you should use year-end balances in place of average balances as appropriate.

Required:
1. For both companies, compute the ratios below. (Consider 365 days a year. Do not round intermediate calculations. Round “Asset Turnover” answers to 3 decimal places and other final answers to 2 decimal places.)

Benatar Jett Receivables Turnover times times days days times times days days % % Average Collection Period Inventory Turnover Average Days in Inventory Profit Margin Asset Turnover Return on Assets Equity Multiplier Return on Equity times times % % Ojo