Response to the following problem:
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?
Caylay Technologies Inc Comparative Retained Earnings Statement
For the Years Ended December 31, 2010 and 2009 2010 2009
Retained earnings, January 1 $1,453,600 $1,218,100 307.500
Add net income for year 482,850
Total $1,936,450 $1.525.600
Deduct dividends 24,000 24,000
On preferred stock On common stock 48.000 48.000
Total 72,000 72,000
Retained earnings, December 31 $1,864,450 600 .