Refer to the financial statements of Campbell Soup Company in Appendix A.

Required:

a. Compute the following measures for Year 10. (Assume 50% of deferred income taxes will reverse in the foresee-able future—the remainder should be considered equity.)

(1) Total debt to equity.

(2) Total debt to total assets.

(3) Long-term liabilities to equity.

(4) Total equity to total liabilities.

(5) Fixed assets to equity.

(6) Short-term liabilities to total debt.

(7) Earnings to fixed charges.

(8) Cash flow to fixed charges.

(9) Working capital to total debt.

b. Under the heading “Balance Sheets” in its Management’s Discussion and Analysis section, Campbell refers to the ratio of total debt to capitalization (33.7%). Verify Campbell’s computation for Year 10.