Comparative financial statements of the Boeckman Company for 2009 and 2010 are as follows:
Comparative Balance Sheets
Comparative Income Statements
Additional information:
The Boeckman Company is listed on the New York Stock Exchange. It issued 1,000 additional shares of common stock at the beginning of 2010. The market value of its common stock was quoted at $17 per share at December 31, 2010. The company uses a 365 day business year in its ratio analysis.
Required:
1. Based on the preceding information, compute (for the year 2010 only) the following ratios for Boeckman:
a. Dividend yield
b. Price/earnings
c. Profit margin
d. Return on total assets
e. Return on stockholders equity
f. Current
g. Acidtest
h. Inventory turnover (in days)
i. Receivables turnover (in days)
j. Payables turnover (in days)
k. Average operating cycle (in days)
l. Debt
m. Interest coverage
n. Book value per common share
2. Briefly discuss what a potential investor might do to evaluate the results of theseratios.