Data for Robert Company in 2011 and 2010 follow. These data should be used in Conjunction with

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Data for Robert Company in 2011 and 2010 follow. These data should be used in Conjunction with the data in P1.


Data for Robert Company in 2011 and 2010 follow. These


Selected balances at the end of 2009 were accounts receivable (net), $103,400; inventory, $273,600; total assets, $732,800; accounts payable, $193,300; and stockholders' equity, $320,600. All Robert's notes payable were current liabilities, all its bonds payable were long-term liabilities.

Required
Performa a comprehensive ratio analysis following the steps outlined below. Round all answers to one decimal place.
1. Prepare a profitability analysis by calculating for each year the
(a) Current ratio,
(b) Quick Ratio,
(c) Receivable turnover
(d) Day's sales uncollected
(e) Inventory turnover,
(f) Days inventory on hand,
(g) Payable turnover, and
(h) Day's payable
2. Prepare a profitability analysis by calculating for each year the
(a) Profit margin,
(b) Asset turnover
(c) Return on assets, and
(d) Return on equity.
3. Prepare a long-term solvency analysis by calculating for each year the
(a) Debt to equity ratio and
(b) Interest coverage ratio
4. Prepare a cash flow adequacy analysis by calculating for each year the
(a) Cash flow yield
(b) Cash flows to sales,
(c) Cash flows to assets, and
(d) Free cash flow.
5. Prepare a market strength analysis by calculating for each year the
(a) Price/earnings (P/E) ratio and
(b) Dividends yields.
6. After making the calculations, indicate whether each ratio improved or deteriorated from 2010 to 2011. (use F for favorable and U for unfavorable and consider changes of 0.1 or less to beneutral)

Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For  book-img-for-question

Principles of Accounting

ISBN: 978-1439037744

11th Edition

Authors: Needles, Powers, crosson

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