Refer to Nabisco Company’s financial information in Exercises 17-6 and 17-8. Additional...

Refer to Nabisco Company’s financial information in Exercises 17-6 and 17-8. Additional information about the company follows. To help evaluate the company’s profitability, compute and interpret the following ratios for 2010 and 2009: (1) return on common stockholders’ equity, (2) price-earnings ratio on December 31, and (3) dividend yield.

Common stock market price, December 31, 2010 . . . . . . . $30.00

Common stock market price, December 31, 2009 . . . . . . . 28.00

Annual cash dividends per share in 2010 . . . . . . . . . . . . . . 0.28

Annual cash dividends per share in 2009 . . . . . . . . . . . . . . 0.24

REFER Exercises 17-6 and 17-8 shown below

Nabisco Company’s year-end balance sheets follow. Express the balance sheets in common-size percents. Round amounts to the nearest one-tenth of a percent. Analyze and comment on the results.

Refer to the Nabisco Company information in Exercise 17-6. The company’s income statements for the years ended December 31, 2010 and 2009, follow. Assume that all sales are on credit and then compute: (1) days’ sales uncollected, (2) accounts receivable turnover, (3) inventory turnover, and (4) days’ sales in inventory. Comment on the changes in the ratios from 2009 to 2010. (Round amounts to one decimal.)