Data for Whale Corporation in 2012 and 2011 follow. These data should be used in conjunction with the data in P 2.

In P 2. Whale Corporation’s condensed comparative balance sheets and condensed comparative income statements for 2012 and 2011 follow.

Selected balances at the end of 2010 were accounts receivable (net), $206,800; inventory, $547,200; total assets, $1,465,600; accounts payable, $384,600; and stockholders’ equity, $641,200. All of Whale’s notes payable were current liabilities; all of its bonds payable were long-term liabilities.

REQUIRED

Perform a comprehensive ratio analysis for 2012 and 2011 following the steps outlined below. (Round all answers to one decimal place.)

1. Prepare a profitability and total asset management analysis by calculating for each year the

(a) Profit margin,

(b) Asset turnover,

(c) Return on assets.

2. Prepare a liquidity analysis by calculating for each year the

(a) Cash flow yield,

(b) Cash flows to sales,

(c) Cash flows to assets,

(d) Free cash flow.

3. Prepare a financial risk analysis by calculating for each year the

(a) Debt to equity ratio,

(b) Return on equity,

(c) Interest coverage ratio.

4. Prepare an operating asset management analysis by calculating for each year the

(a) Inventory turnover,

(b) Days’ inventory on hand,

(c) Receivable turnover,

(d) Days’ sales uncollected,

(e) Payables turnover,

(f) Days’ payable,

(g) Current ratio,

(h) Quick ratio.

5. Prepare a market strength analysis by calculating for each year the

(a) Price/earnings (P/E) ratio

(b) Dividends yield.

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Net cash flows from opcrating activities Net capital expenditures Dividends paid Number of common sharcs Market price 2012 S(196,000) S 40,000 S 44,000 2011 S144,000 S 65,000 S 34,400 40,000 40,000 per share S 36.00 $ 60.00 Whale Corporation Comparative Balance Sheets December 31, 2012 and 2011 2012 2011 Assets Cash Accounts recelvable (net) $ 81,200 235,600 574,800 750,000 $1,641,600 $40,800 229,200 594,800 720,000 $1,584,800 Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity 477,200 400,000 Accounts payable Notes payable (short-term) Bonds payable Common stock, $10 par value Retained earnings Total liabilities and stockholders' equity 267,600 200,000 400,000 400,000 374,000 $1,641,600 400,000 307,600 $1,584,800 Whale Corporation Comparative Income Statements For the Years Ended December 31, 2012 and 2011 2012 2011 Net sales Cost of goods sold Gross margin Operating expenses $3,276,800 2,088,800 $1.188,000 $3,146,400 2,008 400 51138,000 $ 518,000 423,200 $ 941,200 S 196,800 39.200 157,600 56,800 $ 100800 $ 2.52 Selling expenses $476,800 447,200 5 924,000 264,000 65,600 198400 Administrative expenses Total operating expenses Income from operations Interest expense Income before income taxes Income taxes expense Net income Eamings per share S 136,000 $3.40