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    Accounting: Ratio analysis

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    Use the financial statements for Pocca Company to calculate the following ratios for 2006 amd 2005. The following must be done for both years.

    Attached is the Balance Sheet & Statements of Income and Retained Earnings

    a. Working Capital
    b. Current Ratio
    c. Quick Ratio
    d. Accounts receivable turnover (beginning receivables January, 2005, was $47,000)
    e. Average number of days to collect accounts receivable
    f. Inventory turnover (beginning inventory at January 1, 2005 was $140,000)
    g. Average number of days to sell inventory
    h. Debt to assets ratio
    i. Debt to equity ratio
    j. Times interest earned
    k. Plant assets to long-term debt
    l. Net margin
    m. Asset turnover
    n. Return on investment
    o. Return on equity
    p. Earnings per share
    q. Book value per share of common stock
    r. Price-earnings ratio (market price per share: 2005, $11.75; 2006, $12.50)
    r. Dividend yield on common stock.

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    Solution Summary

    The problem deals with estimating different ratios from selected information.