Ratio analysis Required Use the financial statements for Thorn Company from Problem 9-22 to calculate the following

Question:

Ratio analysis

Required

Use the financial statements for Thorn Company from Problem 9-22 to calculate the following ratios for 2008 and 2007.

a. Working capital

b. Current ratio

c. Quick ratio

d. Accounts receivable turnover (beginning receivables at January 1, 2007, were $47,000)

e. Average number of days to collect accounts receivable

f. Inventory turnover (beginning inventory at January 1, 2007, was $140,000)

g. Average number of days to sell inventory

h. Debt to assets ratio

i. Debt to equity ratio

j. Times interest earned

k. Plant assets to long-term debt

l. Net margin

m. Asset turnover

n. Return on investment

o. Return on equity

p. Earnings per share

q. Book value per share of common stock

r. Price-earnings ratio (market price per share: 2007, $11.75; 2008, $12.50)

s. Dividend yield on common stock

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