Problem 11-14 Ratio analysis-comprehensive problem, 2014 data

This problem is based on the 2014 annual report ofCampbell Soup Company.

Required:

a.Compute the following profitability measures for the year ended August 3, 2014 (Dividends declared were $1.248 per common share):

1. Price/earnings ratio. Use $41.96 as the year-end market price.(Round your answer to 1 decimal place.)

2. Dividend yield. Use $41.96 as the year-end market price.(Round your answer to 1 decimal place.)

c.Compute the following activity measures for the year ended August 3, 2014:

1. Number of days' sales in accounts receivable, based on a 365-day year.(Round your answer to 1 decimal place.)

2. Number of days' sales in inventory, based on a 365-dayyear.(Round your answer to 1 decimal place.)

3. Accounts receivable turnover.(Round your answer to 1 decimal place.)

4. Inventory turnover.(Round your answer to 1 decimal place.)

5. Turnover of net property, plant, and equipment.(Round your answer to 1 decimal place.)

d.Compute the following financial leverage measures at August 3, 2014:

1. Debt ratio.(Round your answer to 1 decimal place.)

2. Debt/Equity ratio.(Round your answer to 1 decimal place.)

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