Ratios (Appendix) The Byers Company presents the following condensed income statement for 2010 and condensed December 31, 2010 balance sheet:

Additional information:

1. The company’s common stock and preferred stock were outstanding the entire year.

2. Dividends of $1.50 per share on the common stock and $6 per share on the preferred stock were declared in 2010.

3. On December 31, 2010, the common stock is selling for $20 per share.

4. The preferred stock has a liquidation value of $110 per share.

5. On January 1, 2010, the accounts receivable (net) balance was $24,000 and the total stockholders’ equity was $246,000.

6. Of the company’s net sales, 78% are on credit.

7. The company operates on a 365-day business year.

Required

On the basis of the preceding information, compute the following ratios for the Byers Company:

1. Earnings per share

2. Dividend yield

3. Return on stockholders’ equity

4. Current

5. Acid-test

6. Receivables turnover (in days)

7. Interest coverage

8. Book value per common share

On the basis of applicable “rules of thumb,” what information is revealed by the acid-test ratio that is not disclosed by the current ratio?