Background Information: Use the following Yahoo financial statements to complete

Question

Background Information: Use the following Yahoo financial statements to complete the tasks listed below. Assume 1,180,000 shares and a market price of $16.00.

Task:                                         

Using the preceding information from the Yahoo financial statements, compute the following ratios:

Earnings Per Share

Price Per Earnings

Dividend Yield

Receivables Turnover

Days in Receivables

Inventory Turnover

Days in Inventory

Profit Margin

Return on Total Assets

Return on Stockholders’ Equity

Current Ratio

Quick Ratio

Period Ending Total Revenue Cost of Revenue Gross Profit Dec 31, 2011 4,984,199 1,502,650 3,481,549 Dec 31, 2010 6,324,651 2,627,545 3,697,106 Dec 31, 2009 6,460,315 2,871,746 3,588,569 erating Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses 1,005,090 1,618,106 24,420 33,592 2,681,208 1,082,176 1,752,823 57,957 31,626 2,924,582 1,210,168 1,825,702 126,901 39,106 3,201,877 Operating Income or Loss 800,341 772,524 386,692 erations come Total Other Income/Expenses Net Earnings Before InterestAnd Taxes Interest Expense Income Before Tax Income Tax Expense Minority Interest Net Income From Continuing 27,175 827,516 187,528 574,220 297,869 1,070,393 827,516 241,767 (13,842) 1,048,827 1,070,393 221,523 (12,965) 1,231,663 574,220 219,321 (7,297) 597,992 Ops vents on-re Discontinued Operations Extraordinary ltems Effect Of Accounting Changes Other Items Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 1,048,827 1,231,663 597,992 1,048,827 1,231,663 597,992

Explanation / Answer

Working:

2011 2010 2009 Earning Per Share              0.89              1.04              0.51 Price per earning            17.98            15.38            31.37 Dividend Yield 3.00% 5.00% Receivable turnover              4.87              6.18              6.31 Days in receivables            75.98            59.38            56.69 Inventory turnover 0 0 0 There is no inventory Days in inventory 0 0 0 There is no inventory Profit Margin 69.85% 58.46% 55.55% Return on total assets    7.09% 8.25% 4.00% Return on stockholder's equity 8.36% 9.81% 4.79% Current Ratio              2.86              2.67              2.67 Quick Ratio              2.56              2.41              2.50 Earning Per Share = Net income applicable to common shares/Total no. of common shares stock 2011 2010 2009 Earning Per Share = 1048827/1180000 1231663/1180000 597992/1180000 =              0.89              1.04              0.51 Price per earning = Market price share/Earning per share Price per earning = 16/.89 16/1.04 16/.51 =                  18                  15                  31 Dividend Yield = Dividend per share/Market price per share Dividend Yield = .47/16 .75/16 =              0.03              0.05 Receivable turnover = Sales/Average recivable Receivable turnover = 4984199/1023245 6324651/1023245 6460315/1023245 =              4.87              6.18              6.31 Days in receivables = (account receivable/Annual revenue)*365 Days in receivables = (1037474/4984199)*365 (1028900/6324651)*365 (1003362/6460315)*365 =                  76                  59                  57 Inventory turnover = Cost of goods sold/Average inventory Inventory turnover                   -                     -                     -   Profit Margin = Gross profit/Total Revenue Profit Margin = 3481549/4984199 3697106/6324651 3588569/6460315 =              0.70              0.58              0.56 Return on total assets = Net income/Total assets Return on total assets = 1048827/14782786 1231663/14928104 597992/14936030 =              0.07              0.08              0.04 Return on stockholder's equity = Net income/Stockholder's Equity Return on stockholder's equity = 1048827/12541067 1231663/12558129 597992/12493320 =              0.08              0.10              0.05 Current Ratio = Current Asset/Current Liabiities Current Ratio = 3452536/1207361 4345548/1625872 4594772/1717728 =                    3                    3                    3 Quick Ratio = (Cash+Account receivable+short term investment)/Current Laibilities Quick Ratio = (1562390+1037474+493189)/1207361 (1526427+1357661+1028900)/1625872 (1275430+2015655+1003362)/1717728 =                    3                    2                    3

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