Question

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.)

      

Answer 1