The condensed balance sheet and income statement data for Cardinal Corporation are presented below. Additional information: 1.
Question:
The condensed balance sheet and income statement data for Cardinal Corporation are presented below.
Additional information:
1. The market price of Cardinal common stock was $5.00, $3.50, and $2.30 for 2008, 2009, and 2010, respectively.
2. You must compute dividends paid. All dividends were paid in cash.
Instructions
(a) Compute the following ratios for 2009 and 2010.
(1) Profit margin.
(2) Gross profit rate.
(3) Asset turnover.
(4) Earnings per share.
(5) Price-earnings.
(6) Payout.
(7) Debt to total assets.
(b) Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results from 2009 to 2010 of CardinalCorporation.
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Related Book For
Accounting Tools For Business Decision Making
ISBN: 9780470377857
3rd Edition
Authors: Paul D. Kimmel
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