Marvel Enterprises,Inc.is one of the world's most prominent character-based entertainment companies,owning over 4,700 characters,including Spider-Man,The Incredible Hulk,X-Men,Daredevil,and The Fantastic Four.The company's stock is traded publicly on the New York Stock Exchange.
You have been asked three questions about the financial results in 2002 and 2001:
A.Did the company increase or decrease its relative reliance on creditors for financing the purchase of assets?
B.Did the company become more successful or less successful in controlling its expenses while generating sales?
C.Did the company become more efficient or less efficient in using its assets to generate sales?
For each question,(1)name the appropriate ratio for answering the question,(2)calculate the ratio for each of the two years (using the summary data below),and (3)use your calculations to prepare an answer.
$\begin{array}{lrrr}&2002&2001&2000\
\text { Current Assets } & \$ 122,615 & \$ 100,227 & \$ 113,443 \
\text { Total Assets } & 517,519 & 517,570 & 553,957 \
\text { Current Liabilities } & 90,011 & 70,237 & 70,376 \
\text { Total Liabilities } & 241,870 & 267,637 & 320,376\
\text { Total Shareholders' Equity } & 275,649 & 249,933 & 233,581 \
\text { Sales Revenues } & 299,046 & 181,224 & 231,651 \
\text { Net Income (Loss) } & 22,610 & 5,265 & (89,858)
\end{array}$

Question

Marvel Enterprises,Inc.is one of the world's most prominent character-based entertainment companies,owning over 4,700 characters,including Spider-Man,The Incredible Hulk,X-Men,Daredevil,and The Fantastic Four.The company's stock is traded publicly on the New York Stock Exchange.
You have been asked three questions about the financial results in 2002 and 2001:
A.Did the company increase or decrease its relative reliance on creditors for financing the purchase of assets?
B.Did the company become more successful or less successful in controlling its expenses while generating sales?
C.Did the company become more efficient or less efficient in using its assets to generate sales?
For each question,(1)name the appropriate ratio for answering the question,(2)calculate the ratio for each of the two years (using the summary data below),and (3)use your calculations to prepare an answer.
 $\begin{array}{lrrr}&2002&2001&2000\
\text { Current Assets } & \$ 122,615 & \$ 100,227 & \$ 113,443 \
\text { Total Assets } & 517,519 & 517,570 & 553,957 \
\text { Current Liabilities } & 90,011 & 70,237 & 70,376 \
\text { Total Liabilities } & 241,870 & 267,637 & 320,376\
\text { Total Shareholders' Equity } & 275,649 & 249,933 & 233,581 \
\text { Sales Revenues } & 299,046 & 181,224 & 231,651 \
\text { Net Income (Loss) } & 22,610 & 5,265 & (89,858)
\end{array}$

Quizplus · Accepted Answer

The Answer of Marvel Enterprises,Inc.is one of the world's most prominent character-based entertainment companies,owning over 4,700 characters,including Spider-Man,The Incredible Hulk,X-Men,Daredevil,and The Fantastic Four.The company's stock is traded publicly on the New York Stock Exchange.
You have been asked three questions about the financial results in 2002 and 2001:
A.Did the company increase or decrease its relative reliance on creditors for financing the purchase of assets?
B.Did the company become more successful or less successful in controlling its expenses while generating sales?
C.Did the company become more efficient or less efficient in using its assets to generate sales?
For each question,(1)name the appropriate ratio for answering the question,(2)calculate the ratio for each of the two years (using the summary data below),and (3)use your calculations to prepare an answer.
 $\begin{array}{lrrr}&2002&2001&2000\
\text { Current Assets } & \$ 122,615 & \$ 100,227 & \$ 113,443 \
\text { Total Assets } & 517,519 & 517,570 & 553,957 \
\text { Current Liabilities } & 90,011 & 70,237 & 70,376 \
\text { Total Liabilities } & 241,870 & 267,637 & 320,376\
\text { Total Shareholders' Equity } & 275,649 & 249,933 & 233,581 \
\text { Sales Revenues } & 299,046 & 181,224 & 231,651 \
\text { Net Income (Loss) } & 22,610 & 5,265 & (89,858)
\end{array}$