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Please review the following 6 ratios for Simpson Company and ABC Inc. for the year ended 2014, and address the 2 questions below.

Ratio Name	Simpson Company	ABC Inc.
(a) Days' sales outstanding	36	30
(b) Inventory turnover	5.6	4.9
(c) Asset turnover	2.02	3.03
(d) Earnings per share	$1.50	$1.25
(e) Times-interest-earned	6.1	5.2
(f) Return on common stockholders' equity	15.6%	12.2%

Instructions: This is a 2-part question.

(1) Explain the meaning of each of the Simpson Company ratios above.

(2) State which company performed better for each ratio

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