Compute the following: 1. Efficiency ratio 2. Financial Leverage
Extracted text: ABC, INC. Condensed Balance Sheets December 31 (In millions) Assets 2014 2015 Current Assets 1,902.0 1,617.1 Plant Assets 2,952.8 2,526.9 Other Assets 5,513.8 742.0 Total Assets 10,368.6 4,886.0 Liabilities and Stockholders' Equity Current liabilities P 2,017.6 2,482.3 Long-term liabilities 7,289.5 1,506.2 Total libailities 9.497.1 3,988.5 Stockholders' equity Common stock 195.3 205.8 Retained earnings 1,013.3 1,065.7 Treasury stock (337.1) (374.0) Total stockholders' equity 871.5 897.5 Total liabilities and stockholders' equity P 10,368.6 P 4,886.0
Extracted text: ABC, INC. Condensed Income Statement For the Years Ended December 31 (In millions) 2014 2015 Net sales 8,853.3 6,954.7 Cost of goods sold 4,128.5 3,327.0 Gross Profit 4,724.0 3,627.7 Selling & Admin. 3,523.6 2,551.4 Nonrecurring charges 33.3 86.5 Income from operations 1,167.9 989.8 Interest Expense 351.5 137.5 Other income (expense), net (12.3) 15.4 Income before taxes 804.1 867.7 Income tax expense 322.1 280.0 Net income P 482.0 P 587.7