Based on the financial information provided, calculate the following ratios and explain their purpose:

Current Ratio

Inventory Turnover Ratio

Accounts Receivable Turnover Ratio

Debt to Equity Ratio

Return on Assets Ratio

Asset Turnover Ratio

Return on Equity Ratio

Profit Margin Ratio

Price-Earnings Ratio

Dividend Yield Ratio

	12/31/2010	12/31/2009
	Amount in Dollars	Amount in Dollars
Cash	200.00	150.00
Receivables	500.00	350.00
Inventories	750.00	755.00
Other Current Assets	100.00	75.00
Total Current Assets	1,550.00	1,330.00
Plant and Equipment	1,100.00	1,170.00
Other Long - Term Assets	150.00	100.00
Total Assets	2,800.00	2,600.00
Accounts Payable	510.00	400.00
Other Current Liabilities	25.00	25.00
Total Current Liabilities	535.00	425.00
Long Term Debt	375.00	400.00
Other Long Term Liabilities	225.00	175.00
Preferred Stock	250.00	250.00
Shareholders' Equity	1,415.00	1,350.00
Total Liabilities and Shareholders' Equity	2,800.00	2,600.00