Comparative financial statements of the Boeckman Company for 2009 and 2010 are as follows:
Comparative Balance Sheets

Comparative Income Statements

Additional information:
The Boeckman Company is listed on the New York Stock Exchange. It issued 1,000 additional shares of common stock at the beginning of 2010. The market value of its common stock was quoted at $17 per share at December 31, 2010. The company uses a 365-day business year in its ratio analysis.

Required
1. Based on the preceding information, compute (for the year 2010 only) the following ratios for Boeckman:
a. Dividend yield
b. Price/earnings
c. Profit margin
d. Return on total assets
e. Return on stockholders€™ equity
f. Current
g. Acid-test
h. Inventory turnover (in days)
i. Receivables turnover (in days)
j. Payables turnover (in days)
k. Average operating cycle (in days)
l. Debt
m. Interest coverage
n. Book value per common share
2. Briefly discuss what a potential investor might do to evaluate the results of theseratios.

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December 31 2010 2009 Assets Current assets Cash $ 7,940 10,060 18,000 32,000 15,000 83,000 64,000 36,000 38,600 13,000 30,000 $264,600 $ 5,760 4,240 19,500 27,000 14,000 70,500 46,000 32,000 31,000 9,000 27,500 $216,000 Temporary investments (at market) Accounts receivable Inventories Prepaid insurance Total current assets Property and plant (net) Investments Long-term receivables Patents, net Other assets Total Assets Liabilities Current liabilities S 17,800 7,500 1,500 3,200 $30,000 $ 56,300 12,500 S 16,500 6,800 1,400 3,200 27,900 S 48,000 11,800 Accounts payable Income taxes payable Accrued payables Current portion of long-term debt Total current liabilities Long-term debt Deferred income taxes Total other liabilities Total liabilities $106,000 $96,000 Stockholders' Equity Common stock, $5 par Premium on common stock Retained earnings Accumulated other S 35,000 36,000 86,600 S 30,000 24,600 64,800 $158,600 Total Liabilities and Stockholders Equity $264,600 comprehensive income Total stockholders' equity 600 $120,000 216,000 For Years Ended December 31, 2010 $278,000 (8,000) $270,000 (175,500 $94,500 (21,500) (27,560) (4.300) 5(53,360) $41,140 (12,340) 28,800 64,800 2009 $256,000 Sales Sales returns Net sales (68% on credit) Cost of goods sold Gross profit Selling expenses General expenses Interest expense (6,000) $250,000 (170,000) $ 80,000 (18,200) (23,550) (3,100) Total expenses Income before income taxes Income tax expense Net income Beginning retained earnings Common stock dividends Ending retained earnings $(44,850) 35,150 24,600 (10,550) 43,200 (7.0003.000) (3,000) $86,600 64,800