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) |
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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) |
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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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