S 13 -5 (L earn i ng Obj ec tiv e 5: Ev al u a t e t he t rend i n a co mp any ’ s c u rren t ra ti
S13-5 (Learning Objective 5: Evaluate the trend in a company’s current ratio) Examine the finan- cial data of Stephens Corporation.
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper Now
Year Ended December 31
2012
2011
2010
Operating Results
Net income…………………………………………………..
$ 250
$ 340
$ 342
Per common share…………………………………………
$1.37
$1.68
$1.99
Percent of sales……………………………………………..
19.9%
17.9%
19.3%
Return on average stockholders’ equity…………….
21.0
18.0
19.0
Financial Position
Current assets……………………………………………….
$ 590
$ 497
$ 445
Current liabilities ………………………………………….
$ 362
$ 333
$ 339
Working capital ……………………………………………
$ 228
$ 164
$ 106
Current ratio ………………………………………………..
1.63
1.49
1.31
Show how to compute Stephens current ratio for each year 2010 through 2012. Is the company’s
ability to pay its current liabilities improving or deteriorating?
