Here are the income statement and balance sheet of Hudson Corporation.

The market price of the stock on December 31, 19x7 is $46 per share. At the beginning of the year, stockholders’ equity was $193,800. The number of shares issued did not change during the year.

Instructions Determine the following items, showing the figures you used in your calculations (round off to two decimal places);

1. Working capital 2. Current ratio 3. Quick ratio 4. Merchandise inventory turnover 5. Number of days merchandise inventory is kept in stock 6. Rate of return on common stockholders’ equity 7. Earnings per share of common stock 8. Price-earnings ratio

Transcribed Image Text:

Revenue from Sales: Sales Cost of Goods Sold: Hudson Corporation Income Statement. For Year Ended December 31, 19x7 Merchandise Inventory, Jan. 1, 19x7 Delivered Cost of Purchases Goods Available for Sale Less Merchandise Inventory, Dec. 31, 19x7 Cost of Goods Sold Gross Profit Operating Expenses: Selling Expenses (control) General Expenses (control) $ 705 000 00 $ 114000 00 4602 00 00 $574200 00 12180000] 452 400 00 $ 25260000 $ 1390 5 000 693 00 00 Total Operating Expenses Income from Operations Other Expenses: Interest Expense Income Before Income Tax Income Tax Expense Net Income After Income Tax S 208 3 5 000 4425000 $ 780000 36450 00 825000 2820000 S