1. Compute the annual dollar changes and percent changes for each of the following accounts.
|
|
2011 |
2010 |
|
Short term investments |
$217,800 |
$165,000 |
|
Accounts receivable |
42,120 |
48,000 |
|
Notes payable |
57,000 |
0 |
2. For each ratio listed, identify whether the change in ratio value from 2010 to 2011 is usually regarded as favorable or unfavorable.
|
Ratio |
2011 |
2010 |
Ratio |
2011 |
2010 |
|
1. Profit margin |
8% |
6% |
5. Accounts receivable turnover |
5.4 |
6.6 |
|
2. Debt ratio |
45% |
40% |
6. Basic earnings per share |
$1.24 |
$1.20 |
|
3. Gross margin |
33% |
45% |
7. Inventory turnover |
3.5 |
3.3 |
|
4. Acid test ratio |
0.99 |
1.10 |
8. Dividend yield |
1% |
0.8% |