Dawning Company Consolidated Balance Sheet (in millions, except per share amounts)

As of December 31	2011	2010
Assets
current asset
cash and cash equivalent	$ 878	$ 490
Receivables (net of allowances of $49 and $53, respectively)	1,675	1,610
Inventories	1,327	1,222
Other current assets	522	408
Total current assets	4,402	3,730
Property, plant and equipment, net	3,668	3,693
Goodwill, net	2,657	2,362
Other intangible assets, net	1,341	831
Deferred income taxes	115	84
Other assets	541	472
Total assets	$12,724	$ 11,172
Liabilities and Shareholders’ Equity
Current liabilities
Notes and loans payable	$ 34	$ 48
Current portion of long-term debt	346	561
Accounts payable	1,244	1,165
Accrued income taxes	392	272
Other accruals	1,700	1,682
Total current liabilities	3,716	3,728
Long-term debt	4,430	2,815
Deferred income taxes	252	108
Other liabilities	1,785	1,704
Total liabilities	10,183	8,355
Commitments and contingent liabilities
Shareholders’ equity
Common stock, $1 par value
(2,000,000,000 shares authorized, 732,853,180 shares issued)
Additional paid-in capital	1,336	1,132
Retained earnings	15, 649	14,329
Accumulated other comprehensive income (loss)	(2,475)	(2,115)
	15,243	14,079
Unearned compensation	(60)	(99)
Treasury stock, at cost	(12,808)	(11,305)
Total Dawning Company shareholders’ equity	2,375	2,675
Noncontrolling interests	166	142
Total shareholders’ equity	2,541	2,817
Total liabilities and shareholders’ equity	$ 12,724	$ 11,172

Dawning’s Comparative Income Statements (in millions)

	2011	2010	Changes	% Changes
Net sales	$16,734	$15,564	$1,170	7.5%
Cost of sales	7,144	6,360	784	12.3%
Gross Profit	9,590	9,204	386	4.2%
Selling, general, and administrative expenses	5,758	5,414	344	6.4%
Other (income) expense, net	(9)	301	(310)	(103%)
Operating profit	3,841	3,489	352	10.1%
Interest expense, net	52	59	(7)	(11.9%)
Income before income taxes	3,789	3,430	359	10.5%
Provision for income taxes	1,235	1,117	118	10.6%
Net income including noncontrolling interests	2,554	2,313	241	10.4%
Less: Net income attributable to noncontrolling interests	123	110	13	11.8%
Net income attributable to Dawning Company	$2,431	$2,203	228	10.3%

Required

a) Compute the following ratios in the year 2011

i. Gross profit margin

ii. Net profit margin

iii. Current ratio

iv. Acid test ratio

v. Total debt to equity

vi. Return on assets

vii. Return on equity

viii. Accounts receivable turnover

ix. Inventory turnover

x. Total assets Turnover

xi. Price to earnings

xii. Dividend yield

b) Required: Interpret the above ratios on the company’s credit, solvency, and profitability status.