Use the financial statements for Campbell Soup Company to calculate the following liquidity ratios for FYE August 3, 2008:

1. Current ratio

2. Inventory turnover ratio

3. Accounts receivable turnover ratio (Assume all sales are credit sales.) What information does this provide about the firm’sliquidity?

Transcribed Image Text:

Campbell Soup Company Consolidated Statements of Earnings imillions, except per share amounts 2009 53 Weeks 007 52 Weeks 2006 52 Weeks $7.998 $7 6,894 Costs and expenses Marketing and selling expenses Administrative expenses Research and development expenses 1,162 608 115 4,384 1,106 571 4,100 1,033 552 103 (30) Total costs and expenses Earnings Before Interest and Taxes.... ......._....... ........1,098 Earnings before taxes Earnings from continuing operations.. 1,243 163 1,097 165 167 1,099 671 Earnings from discontinued operations 31.16 85466 1.77 $3.12 $2.21 1.88 Per Share- Basie Eamings from continuing operations Eanings from discontinued operations ....$ 1.80 1.32 16 Per Share-Assuming Dilution *2.00 16 $3.06-2.16 1.76 1.74 Net Earnings .. Welghted average shares outstanding-assuming dilution $1.85 414