Following is information from a firms financial statements: Requirements 1. Calculate the following ratios for 2011 and

Following is information from a firm’s financial statements:

Requirements
1. Calculate the following ratios for 2011 and 2010:
a. Current ratio
b. Accounts receivable turnover ratio
c. Debt- to- equity ratio
d. Profit margin ratio
e. Return on equity
f. Gross profit percentage
2. Suppose the changes from 2010 to 2011 in each of these ratios were consistent with the direction and size of the change for the past several years. For each ratio, explain what the trend in the ratio would indicate about thecompany.

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Year Ended December 31 2010 2011 2009 Net sales (all on account) Cost of goods sold Gross profit Interest expense Income taxes Net income Cash and cash equivalents Accounts receivable, less allowance Total current assets Total assets Total current liabilities Long-term liabilities Total shareholders' equity The firm has no preferred stock. $5,003,837 $4,934,430 2,755,323 2,804,459 2,248,514 2,129,971 71,971 167,239 272,864 19,133 604,516 61,168 186,258 303,860 18,623 606,046 3,530 546,314 1,597,377 1,547,290 ,532,253 4,052,090 4,065,462 4,035,801 44,539 1,111,973 1,163,696 ,237,549 1,189,862 1,698,532 1,715,940,592,180