(Answered) Problemreview the following 6 ratios for langley company

Accounting

Problem

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

(1) Explain the meaning of each of the Langley Company ratios above.
(2) State which company performed better for each ratio.

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