Chapter 7:
Exercises: 19, 21, 23, 24
Problems: 29, 30
Chapter 8:
Exercises: 13, 15, 16
Problems: 30, 41

7.19

Current Ratios
2010 = 5528/2031 = 2.72
2011 = 6351/1999 = 3.18
2012 = 7346/2613 = 2.81
2013 = 8077/2584 = 3.13

Quick Ratio
2010 = 3349/2031 = 1.65
2011 = 4087/1999 = 2.04
2012 = 4686/2613 = 1.79
2013 = 5342/2584 = 2.07

Cash Flow from Operations to Current Liabilities Ratio

2011 = 1571/2015 = 78%
2012 = 1668/2306 = 72.3%
2013 = 1879/2598.5 = 72.3%

Accounts Receivable Turnover Ratio

2011 = 13790/2191 = 6.27
2012 = 14955/2322.5 = 6.44
2013 = 16326/2439 = 6.69

Inventory Turnover Ratio

2011 = 7624/1730.5 = 4.41
2012 = 8368/1944 = 4.3
2013 = 9165/2099.5 = 4.37

Accounts Payable Turnover Ratio

2011 = 7785/777.5 = 10.01
2012 = 8634/863.5 = 10
2013 = 9210/996 = 9.25

The short term liquidity risk did not substantially change over the three year period.

7.21

Long Term Debt Ratio

2010 = 7391/12900 = 53.2%
2011 = 7150/13749 = 52%
2012 = 6278/13594 = 46.2%
2013 = 5871/13522 = 43.4%

Debt-Equity Ratio

2010 = 7391/2360 = 313.2%
2011 = 7150/2502 = 285.8%
2012 = 6278/2780 = 225.8%
2013 = 5871/3034 = 193.5%

Cash Flow from Operations to Total Liabilities Ratio

2011 = 12.4%
2012 = 8.5%
2013 = 10.1%

Interest Coverage Ratio

2011 = 3.3 (538/165)
2012 = 3.9 (635/161)
2013 = 4.2 (651/155)

The proportion of long term debt declined during the three year period.

7.23

Trans Return on SE Current Ratio L to A Ratio
a. - depends - Increase
b. - Increase - Increase - Decrease
c. - no effect - no effect - no effect
d. - no effect ??? - Decrease
e. - no effect - Increase - no effect
f. - Increase - Decrease - Increase
g. - Decrease - Increase - Decrease
h. - no effect - Decrease - Increase

7.24

Trans Working Capital Quick Ratio
a.