Case 11-4 A.Compute the following liquidity ratios for 2009 and 2008 Day's sales in inventory Inventory turnover (using ending inventory) Working capital current ratio cash ratio sales to working capital (use ending working capital) Operating cash flow/current maturities of long-term debt-paying ability for 2009 and 2008 B. Compute the following long-term debt-paying ability for 2009 and 2008 debt ratio operating cash flow/total debt operating cash flow/total debt C. Compute the following profitability ratios for 2009 and 2008 net profit margin return on assets (use end of year total assets) return on total equity (use end of year total equity) gross profit margin D. Compute or obtain the following investor analysis earnings per common share operating cash flow/cash dividends E. Comment on the results in a,b,c, and d F. Comment on the trend in net income (loss) G. Comment on significant trends (items) H. Using these ratios for 2009 and 2008, comment using the Beaver study on possible financial failure: cash flow/total debt net income/total assets (return on assets) total debt/total assets (debt ratio) Case 11-5 Required a. Perform a horizontal common-size analysis of the consolidated statements of operations using sales through gross margin for 2008, 2009, and 2010. use the fiscal year ended Feb. 2, 2008 as the base. Comment b. Perform a vertical common-size analysis of the consolidated statements of operations using sales through gross margin for 2008,2009,and 2010. Use sales at the base. Comment c. for the years ended Jan. 31, 2009 and Jan. 30, 2010, compute the following ratios, comment cash flow/total debt net income/total assets (return on assets) total debt/total assets (debt ratio) note: these are the ratios that the Beaver study indicated were the best for forecasting failure (in order of their predictive power). For the consolidated statements of cash flows for the fiscal year ended Feb. 2, 2008, Jan 31, 2009, and Jan. 30, 2010, comment on the significance of the decrease in inventories on the net cash provided by operating activities of continuing operastions. Consolidated Statements of cash flows (dollars in millions) (in part): Fiscal year ended Jan. 30, 2010 Jan. 31, 2009 Feb. 2, 2008 supplemental cash flow disclosures interest paid $16.6 $36.3 $43.8 net income taxes (received) paid $(42.5) $(34.6) $12.4 Comment on the audit report dated April 1, 2010