The comparative financial statements of Caylay Technologies Inc. are as follows. The market price of Caylay Technologies Inc. common stock was $40 on December 31, 2010.

Instructions

a. Determine the following measures for 2010, rounding to one decimal place:

1. Working capital

2. Current ratio

3. Quick ratio

4. Ratio of liabilities to stockholders’ equity

5. Number of times interest charges earned

6. Rate earned on total assets

7. Rate earned on stockholders’ equity

8. Rate earned on common stockholders’ equity

9. Earnings per share on common stock

10. Price-earnings ratio

11. Dividends per share of common stock

12. Dividend payout ratio of common stock

b. What conclusions can be drawn from these analyses?