CASE 1–5 Refer to Campbell Soup Company’s financial statements in Appendix A.

Required:

Compute the following ratios for Year 11.

Liquidity ratios: Asset utilization ratios:*

a. Current ratio n. Cash turnover

b. Acid-test ratio o. Accounts receivable turnover

c. Days to sell inventory p. Inventory turnover

d. Collection period q. Working capital turnover Capital structure and solvency ratios: r. Fixed assets turnover

e. Total debt to total equity s. Total assets turnover

f. Long-term debt to equity Market measures (Campbell’s stock price per share is g. Times interest earned $46.73 for Year 11):

Return on investment ratios: t. Price-to-earnings ratio h. Return on total assets u. Earnings yield i. Return on common equity v. Dividend yield Operating performance ratios: w. Dividend payout rate j. Gross profit margin ratio x. Price-to-book ratio k. Operating profit margin ratio l. Pretax profit margin ratio m. Net profit margin ratio

* For simplicity in computing utilization ratios, use end-of-year values and not average values.