The condensed comparative income statements and balance sheets of Basie Corporation appear on the next page. All figures are given in thousands of dollars, except earnings per share.

Additional data for Basie Corporation in 20x8 and 20x7 follow.

Balances of selected accounts at the end of 20x6 were accounts receivable (net), $52,700; inventory, $99,400; accounts payable, $64,800; total assets, $647,800; and stockholder’s equity, $376,600. All of the bonds payable were long-term liabilities.
Required
Perform the following analyses. Round percentages and ratios to one decimal place.
1. Prepare a liquidity analysis by calculating for each year the (a) current ratio, (b) quick ratio, (c) receivable turnover, (d) days’ sales uncollected, (e) inventory turnover, (f) days’ inventory on hand, (g) payables turnover, and (h) days’ 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 an analysis of market strength by calculating for each year the (a) price/earnings (P/E) ratio and (b) dividends yield.
6. Manager Insight: After making the calculations, indicate whether each ratio improved or deteriorated from 20x7 to 20x8 (use F for favorable and U for unfavorable and consider changes of .1 or less to beneutral).

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Basie Corporation Comparative Income Statements For the Yers Ended December 31, 20x8 and 20x7 20x8 20x7 Net sales Cost of goods sold Gross margin Operating expenses $800,400 $742,600 454,100 396,200 346,300 $346,400 Selling expenses Administrative expenses90,300 Total operating expenses $270,400 $130,100 $104,600 115,500 $220,100 S 75,900 $126,300 Income from operations 25,000 20,000 Income before income taxes 50,900 $106,300 35,000 S36,900 71,300 1.23 2.38 Interest expense Income taxes expense Net income Earnings per share 14,000 Basie Corporation Comparative Balance Sheets December 31, 20x8 and 20x7 20x8 20x7 Assets Cash Accounts receivable (net) S 31,100 27,200 42,700 107,800 577,700 507,500 $803,900 $685,200 72,500 122,600 Property, plant, and equipment (net) Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Bonds payable Common stock, $10 par value Retained earnings Total liabilities and stockholders' equity $104,700 72,300 50,000 200,000 110,000 300,000 300,000 152,900 $685,200 50,000 149,200 $803,900 20x8 20x7 Net cash flows from operating activities64,000 $99,000 $119,000 $38,000 $31,400 $35,000 30,000 30,000 $60 Net capital expenditures Dividends paid Number of common shares Market price per share $40