Use the comparative data for Sunshine State Equipment, Inc., as given in Problem 23-35. In addition, the year-end price per share of Sunshine's stock was $50 for 2011, $25 for 2012, and $35 for 2013.
Instructions:
1. Compute financial ratios for the three years 2011-2013 as follows (for ratios normally using average balances, assume that 2010 figures are the same as 2011):
(a) Accounts receivable turnover
(b) Average collection period
(c) Inventory turnover
(d) Number of days' sales in inventory
(e) Fixed asset turnover
(f) Debt ratio
(g) Debt-to-equity ratio
(h) Times interest earned (Assume that Bonds Payable is the only interest-bearing liability.)
(i) Earnings per share
(j) Price-earnings ratio
(k) Book-to-market ratio
2. Based on the ratios calculated in (1), evaluate Sunshine State Equipment, Inc., in 2013 as compared with 2012.