Comparative financial statements of the Boeckman Company for 2006 and 2007 are as follows:

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 2007. The market value of its common stock was quoted at $17 per share at December 31, 2007. The company uses a 365-day business year in its ratio analysis.
Required
1. Based on the preceding information, compute (for the year 2007 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. Acid-test
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.

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Comparative Balance Sheets December 31 2007 2006 $ 5,760 4,240 19,500 S 7,940 Temporary investments (at market) Accounts receivable nventones 18,000 32,000 nsurance $ 83,000 64,000 36,000 38,600 70,500 46,000 32,000 current assets Property and plant (net) Investments Long-term receivables Patents, net Other assets Total Assets Liabilities Current liabilities 9,000 $264,600 216,000 16,500 6,800 S 17,800 Accrued payables Current portion of long-term debt Total current liabilities Long-term debt Deferred income taxes Total other liabilities S 27,900 $ 48,000 11,800 $56,300 12,500 Total liabilities Stockholders Equity Common stock, $5 par Premium on common stock Retained earnings Accumulated other $96,000 $30,000 $64,800 $106,000 $35,000 36,000 86,600 mprehensive income Total stockholders equity Total Liabilities and Stockholders' Equity Comparative Income Statements 158,600 $264,600 120,000 2 For Years Ended December 31 2007 $278,000 $256,000 (8000 (6,000) es returns Net sales (68% on credit) Cost of goods sold $270,000 (175,500) $ 94,500 $250,000 170,000 Selling expenses (18,200) (23,550) (4300 (3,100) (27,560) Interest expense Total expenses $(53.360) (44,850) For Years Ended December 31 2007 2006 Income before income taxes Income tax expense Net income Beginning retained earnings Common stock dividends Ending retained earnings 35,150 10,550 S 24,600 43,200 3,000 S 41,140 12,340 $ 28,800 64,800 () 7,000