1 P13-7 (Algo) Analyzing Financial Statements Using Ratios LO 13-4, 13-6, 13-8 The comparative financial statements for Prince Company are below: 2 points Year 2 Year 1 eBook Print $200,000 114,500 85,500 57,000 28,500 9,800 $ 19,500 $169,500 101,000 68,500 53,500 15,000 4,500 $ 10,500 References Income statement : Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet: Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (12% interest) Common stock ($8 par value, 3,875 shares outstanding) Retained earnings Total liabilities and stockholders' equity $ 5,000 14,500 41,000 46,500 $107,000 $ 16,500 45,500 31,000 14,000 $107,000 $ 7,500 18,500 34,500 39,000 $ 99,500 $ 17,500 45,500 31,000 5,500 $ 99,500 Assume that the stock price per share is $33 and that dividends in the amount of $6.00 per share were paid during Year 2. Compute the following ratios: (Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Earnings per share Current ratio Quick ratio Cash ratio Pricelearnings ratio Dividend yield ratio % 2 M13-4 (Algo) Computing the Return on Asset Ratio LO 13-4 2 points Compute the return on asset ratio for Year 2 given the following data: (Enter your answer as a percentage rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) eBook Total asset turnover Net profit margin Year 2 2.00 12.00% Year 1 1.80 10.00% Print References Return on asset ratio %