(TCO G) Please review the following 6 ratios for Langley Company
(TCO G) Please review the following 6 ratios for Langley Company and XYZ Inc. for the year ended 2014, and address
the 2 questions below.
| Ratio Name | Langley Company | XYZ Inc. |
| (a) Rate of return on total assets | 21.5% | 17.9% |
| (b) Debt ratio | 25.0% | 10.1% |
| (c) Accounts receivable turnover | 8.3 | 7.5 |
| (d) Price-Earnings ratio | 25 | 19 |
| (e) Inventory turnover | 6.1 | 5.2 |
| (f) Current ratio | 1.96 | 3.12 |
Instructions: This is a 2-part question.
(1) Explain the meaning of each of the Langley Company ratios above. (18 points)
(2) State which company performed better for each ratio
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