Refer to the Nabisco Company information in Exercises 17-6 and 17-8. Compare the company...

Refer to the Nabisco Company information in Exercises 17-6 and 17-8. Compare the company’s longterm risk and capital structure positions at the end of 2010 and 2009 by computing these ratios: (1) debt and equity ratios, (2) debt-to-equity ratio, and (3) times interest earned. Comment on these ratio results.

REFER 17-6 AND 17-8

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.)