I have small assignment due on Monday 28/09/2020 ..can you please help on it
Company Comparison Case Study 1 Data from the financial statements of JetBlue Airways and Southwest Airlines are presented below. Requirements (show your formulas and calculations): a.) Compute the return on equity ratio for JetBlue and Southwest for 2017. Which Company earned the higher return for its shareholders? b.) Compute the debt-to-equity ratio for each company as of December 31, 2017. Which company relies more on creditor financing? c.) For each company, compute net income as a percentage of revenue in 2017. d.) For each company, calculate working capital and current ratio for 2017 and 2016. How did they change from 2016 to 2017 (improve or worsen)? What may have caused those changes? e.) For each company, compute the return on assets ratio (ignore any interest and tax impact) for 2017. Which Company earned the higher return based on its assets? f.) Based on your answers to questions a - e, compare these two competitors, specifically if you had $10,000, which would you invest in. What might be the cause of any differences in the ratios that you computed? g.) Name three specific ways/strategies that the companies could improve their current ratio. ($ Millions)JetBlue AirwaysSouthwest Airlines Total liabilities, 20171,108$ 13,973$ Total liabilities, 20161,444$ 14,845$ Total assets, 20179,781$ 25,110$ Total current assets, 20171,206$ 4,815$ Total assets, 20169,323$ 23,386$ Total current assets, 20161,403$ 4,498$ Revenue, 20177,015$ 21,171$ Net income, 20171,147$ 3,488$ 1-46 C1-46. Preparing Comparative Income Statements and Computing Key Ratios Starbucks Corporation reported the following data in its 2018 and 2017 10-K reports ($ Millions)Sept. 30, 2018Oct. 1, 2017 Total assets$ 24,256.40$ 14,365.60 Total liabilities$ 22,980.60$ 8,908.60 Sales revenue$ 24,719.50$ 22,386.80 Cost of goods sold$ 10,174.50$ 9,034.30 Other expenses, including income taxes$ 10,027.00$ 10,467.60 a.) Prepare income statements for Starbucks for the years ended September 30, 2018, and October 1, 2017. Use the format illustrated in Exhibit 1.8. b.) Compute Starbucks' return on equity ratio for 2018 and 2017. Starbucks stockholders' equity at October 2, 2016, was $5890.7 million. c.) Compute Starbucks' debt-to-equity ratio for 2018 and 2017. d.) In 2018, Starbucks reported a lawsuit is in process where plaintiffs allege that Starbucks did not inform customers about the chemical acrylamide in their products (as required by California law). Starbucks did not record a liability (and expense), stating that the loss was possible but not probable. What would Starbucks' ROE have been if it had accrued a $3,700 million litigation liability (and expense)? What effect did this one time charge have on the company's return on equity ratio? (Hint: Compute the ratio and include the litigation charge in other expenses, reduce stockholders' equity, and compare to the ratio computed in b.) Ignore tax effects e.) Starbucks disclosed information about the pending litigation in the footnotes to its 2017 financial statements (before case was settled). Discuss the costs and benefits of disclosing this information in its 2017 annual report. 1-47 C1-47. Computing and Interpreting Key Ratios and Formulating an Income Statement Data from the financial statements of The Gap, Inc. and Nordstrom, Inc. are presented below. ($ Millions)The GapNordstrom Stockholders' equity, 2017$ 3,144$ 977 Stockholders' equity, 2016$ 2,904$ 870 Total assets, 2017$ 7,989$ 8,115 Total assets, 2016$ 7,610$ 7,858 Revenue, 2017$ 15,855$ 15,478 Cost of goods sold, 2017$ 9,789$ 9,890 Net income, 2017$ 848$ 437 a.) Compute the return on equity ration for The Gap and Nordstrom for 2017. Which company earned the higher return for its shareholders? b.) Compute the debt-to-equity ratio for each company as of 2017. Which company relies more on creditor financing? c.) Prepare a 2017 income statement for each company using the format in Exhibit 1.8. For each firm, compute gross profit as a percentage of sales revenue. d.) Based on your answers to questions a, b, and c, compare these two retail companies. What might be the cause of any differences in the ratios that you computed? 1-48 C1-48. Computing and Interpreting Key Ratios Data from the financial statements of JetBlue Airways and Southwest Airlines are presented below. ($ Millions)JetBlue AirwaysSouthwest Airlines Total liabilities, 2017$ 1,108$ 13,973 Total liabilities, 2016$ 1,444$ 14,845 Total assets, 2017$ 9,781$ 25,110 Total current assets, 2017$ 1,206$ 4,815 Total assets, 2016$ 9,323$ 23,386 Total current assets, 2016$ 1,403$ 4,498 Revenue, 2017$ 7,015$ 21,171 Net income, 2017$ 1,147$ 3,488 a.) Compute the return on equity ratio for JetBlue and Southwest for 2017. Which Company earned the higher return for its shareholders? b.) Compute the debt-to-equity ratio for each company as of December 31, 2017. Which company relies more on creditor financing? c.) For each company, compute net income as a percentage of revenue in 2017 d.) Calculate working capital and current ratio for 2017 and 2016. How did they change (improve or worsen)? What may have caused that change? e.) For each company, compute return of assets for 2017 f.) Compute the return on assets ratio (ignore any interest and tax impact) for JetBlue and Southwest for 2017. Which Company earned the higher return based on its assets? g.) Based on your answers to questions a - f, compare these two competitors. What might be the cause of any differences in the ratios that you computed? h.) Name three specific ways that the companies could improve their current ratio.