=+Corporations normally issue annual reports to their stockholders and other interested parties.

Such reports summarize the corporation’s operating activities for the past year and plans for the future.

• Describe the elements of a corporate annual report.

Describe the contents of corporate annual reports.

Key Points Key Learning Outcomes Example Practice Instructions Determine the following measures for 2010:

1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days’ sales in receivables 6. Inventory turnover 7. Number of days’ sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders’ equity 10. Number of times interest charges are earned 11. Number of times preferred dividends earned 12. Ratio of net sales to assets 13. Rate earned on total assets 14. Rate earned on stockholders’ equity 15. Rate earned on common stockholders’ equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share 19. Dividend yield