Question

Hyrkas Corporation's most recent balance sheet and income statement appear below:        Statement of Financial Position...

Hyrkas Corporation's most recent balance sheet and income statement appear below:

    

  Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars)
Year 2 Year 1
  Asset:
  Current assets:
  Cash $ 110 $ 120
  Accounts receivable 220 230
  Inventory 120 110
  Prepaid expenses 15 15
  Total current assets 465 475
  Plant and equipment, net 904 884
  Total assets $ 1,369 $ 1,359
  Liabilities and stockholders' equity:
  Current liabilities:
  Accounts payable $ 170 $ 160
  Accrued liabilities 60 60
  Notes payable, short term 110 120
  Total current liabilities 340 340
  Bonds payable 195 245
  Total liabilities 535 585
  Stockholders' equity:
  Preferred stock, $100 par value, 10% 210 225
  Common stock, $1 par value 100 100
  Additional paid-in capital--common stock 110 110
  Retained earnings 414 345
  Total stockholders' equity 834 780
  Total liabilities and stockholders' equity $ 1,369 $ 1,365


Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
  Sales (all on account) $ 1,340
  Cost of goods sold 851
  Gross margin 489
  Selling and administrative expenses 286
  Net operating income 203
  Interest expense 32
  Net income before taxes 171
  Income taxes (30%) 51
  Net income $ 120

       

Dividends on common stock during Year 2 totaled $30 thousand. The market price of common stock at the end of Year 2 was $9.37 per share.

    

Required:
a.

Compute the gross margin percentage for Year 2.(Round your answer to 2 decimal place.)

  
      

b.

Compute the earnings per share (of common stock) for Year 2.(Round your answer to 2 decimal places.)

  
      

c.

Compute the price-earnings ratio for Year 2.(Do not round intermediate calculations. Round your answer to 2 decimal place.)

  
      

d.

Compute the dividend payout ratio for Year 2. (Do not round intermediate calculations. Round your answer to 1 decimal place.)

  
      

e.

Compute the dividend yield ratio for Year 2.(Round your answer to 2 decimal places.)

  
      

f.

Compute the return on total assets for Year 2.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

  
      

g.

Compute the return on common stockholders' equity for Year 2. (Round your answer to 2 decimal places.)

  
      

h.

Compute the book value per share for Year 2. (Round your answer to 2 decimal places.)

  
      

i.

Compute the working capital for Year 2. (Input your answer in thousands of dollars.)

  
      

j.

Compute the current ratio for Year 2. (Round your answer to 2 decimal places.)

  
      

k. Compute the acid-test ratio for Year 2.(Round your answer to 2 decimal place.)

  
      

l. Compute the accounts receivable turnover for Year 2. (Round your answer to 2 decimal places.)

  
      

m.

Compute the average collection period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to one decimal place.)

  
      

n.

Compute the inventory turnover for Year 2. (Round your answer to 2 decimal places.)

  
      

o.

Compute the average sale period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal place.)

  
      

p.

Compute the times interest earned for Year 2. (Round your answer to 2 decimal places.)

  
      

q.

Compute the debt-to-equity ratio for Year 2. (Round your answer to 2 decimal places.)


      

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