Question
1. Vertical Analysis of Balance Sheet Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year
1.
Vertical Analysis of Balance Sheet
Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow:
Current Year | Previous Year | |||
Current assets | $250,850 | $155,760 | ||
Property, plant, and equipment | 519,000 | 454,300 | ||
Intangible assets | 95,150 | 38,940 | ||
Current liabilities | 155,700 | 90,860 | ||
Long-term liabilities | 346,000 | 246,620 | ||
Common stock | 86,500 | 90,860 | ||
Retained earnings | 276,800 | 220,660 |
Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place.
Kwan Company | ||||
Comparative Balance Sheet | ||||
For the Years Ended December 31 | ||||
Current year Amount | Current year Percent | Previous year Amount | Previous year Percent | |
Current assets | $250,850 | % | $155,760 | % |
Property, plant, and equipment | 519,000 | % | 454,300 | % |
Intangible assets | 95,150 | % | 38,940 | % |
Total assets | $865,000 | % | $649,000 | % |
Current liabilities | $155,700 | % | $90,860 | % |
Long-term liabilities | 346,000 | % | 246,620 | % |
Common stock | 86,500 | % | 90,860 | % |
Retained earnings | 276,800 | % | 220,660 | % |
Total liabilities and stockholders' equity | $865,000 | % | $649,000 | % |
2.
Earnings per Share, Price-Earnings Ratio, Dividend Yield
The following information was taken from the financial statements of Zeil Inc. for December 31 of the current fiscal year:
Common stock, $15 par value (no change during the year) | $2,550,000 |
Preferred $10 stock, $100 par (no change during the year) | 2,000,000 |
The net income was $506,000 and the declared dividends on the common stock were $42,500 for the current year. The market price of the common stock is $15.30 per share.
For the common stock, determine (a) the earnings per share, (b) the price-earnings ratio, (c) the dividends per share, and (d) the dividend yield. If required, round your answers to two decimal places.
a. Earnings per Share | $ | |
b. Price-Earnings Ratio | ||
c. Dividends per Share | $ | |
d. Dividend Yield |
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