The following are Gladstone Corporation's 2009 and 2010 balance sheets and income statements.
Required:
a. Calculate Gladstone's current ratio at December 31, 2010.
b. Calculate Gladstone's quick ratio at December 31, 2010.
c. Calculate Gladstone's debt to total assets ratio at December 31, 2010.
d. Calculate Gladstone's long-term debt to equity ratio at December 31, 2010.
e. Calculate Gladstone's times interest earned ratio at December 31, 2010.
f. Gladstone is preparing a trend analysis for 2009 and 2010, using 2009 as the base year. What are the percentage relationships for (1) Buildings and Equipment and (2) Cost of Goods Sold?
g. Gladstone is preparing common-sized financial statements for 2010. What are the percentage relationships for (1) Inventory, (2) Bonds Payable, (3) Gross Profit, and (4) Net Income?
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