Condensed balance sheet and income statement data for Glassgow Corporation are presented here. Additional information: 1. The

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Condensed balance sheet and income statement data for Glassgow Corporation are presented here.image text in transcribed

image text in transcribed

Additional information:
1. The market price of Glassgow’s common stock was $7.00, $7.50, and $8.50 for 2010, 2011, and 2012, respectively.
2. You must compute dividends paid. All dividends were paid in cash.
Instructions

(a) Compute the following ratios for 2011 and 2012.
(1) Profit margin. (5) Price-earnings.
(2) Gross profit rate. (6) Payout.
(3) Asset turnover. (7) Debt to total assets.
(4) Earnings per share.

(b) Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2011 to 2012 of Glassgow Corporation.

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Accounting Tools For Business Decision Making

ISBN: 9780470534786

4th Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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