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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