ABC company's financial statements for the two most recent years follow: ABC Company Comparative Balance Sheet Assets Current assets: Cash Marketable securities Accounts receivable, net Inventory Total current assets Prepaid expenses Plant and equipment, net Total assets Liabilities and Stockholders' Equity Liabilities: Current liabilities Bonds payable, 12% Total liabilities Stockholders' equity: Common stock, $20 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity This Year Last Year $ 133,000 $ 320,000 698,000 1,115,000 14,000 470,000 765,000 34,000 39,000 1,980,000 1,608,000 2,015,600 1,380,000 $3,995,600 $2,988,000 885,000 750,000 1,635,000 $ 470,000 750,000 1,220,000 860,000 860,000 1,500,600 908,000 2,360,600 1,768,000 $3,995,600 $2,988,000 ABC Company Comparative Income Statement and Sales Cost of goods sold Reconciliation This Year $5,850,000 4,045,000 Last Year $4,860,000 3,620,000 Gross margin 1,805,000 1,240,000 Selling and administrative expenses 687,000 582,000 Net operating income 1,118,000 658,000 Interest expense 90,000 90,000 Net income before taxes 1,028,000 568,000 Income taxes (30%) Net income Common dividends Net income retained 308,400 170,400 719,600 397,600 127,000 106,000 592,600 291,600 Beginning retained earnings Ending retained earnings 908,000 616,400 $1,500,600 $ 908,000 Assess the company's profitability and stock market performance. Hint-The number of common shares outstanding can be calculated by dividing the dollar amount of common stock, reported on the balance sheet, by the par value per share. Hint-Dividends per share can be calculated by dividing the common dividends dollar amount by the number of common shares outstanding. Required: 1. You decide first to assess the company's stock market performance. For both this year and last year, compute: a. The earnings per share. There has been no change in common stock over the last two years. b. The dividend yield ratio. The company's stock is currently selling for $60 per share; last year it sold for $50 per share. c. The dividend payout ratio. d. The price-earnings ratio. (Assume that the industry norm for the price-earnings ratio is 10) 2. You decide next to assess the company's profitability. Compute the following for both this year and last year: a. The gross margin percentage. b. The net profit margin percentage. Complete this question by entering your answers in the tabs below. Required 1 Required 2 You decide first to assess the company's stock market performance. For both this year and last year, compute: a. The earnings per share. There has been no change in common stock over the last two years. (Round your answers to 2 decimal places.) b. The dividend yield ratio. The company's stock is currently selling for $60 per share; last year it sold for $50 per share. (Do not round intermediate calculations. Round your percentage answers to 1 decimal place.) c. The dividend payout ratio. (Do not round intermediate calculations. Round your percentage answers to 1 decimal place.) d. The price-earnings ratio. (Assume that the industry norm for the price-earnings ratio is 10.) (Do not round intermediate. calculations. Round your answers to 2 decimal places.) This Year Last Year a Earnings per share b. Dividend yield ratio % c. Dividend payout ratio % % % d. Price-earnings ratio Required Required 2 > Show less A Required: 1. You decide first to assess the company's stock market performance. For both this year and last year, compute: a. The earnings per share. There has been no change in common stock over the last two years. b. The dividend yield ratio. The company's stock is currently selling for $60 per share; last year it sold for $50 per share. c. The dividend payout ratio. d. The price-earnings ratio. (Assume that the industry norm for the price-earnings ratio is 10) 2. You decide next to assess the company's profitability. Compute the following for both this year and last year: a. The gross margin percentage. b. The net profit margin percentage. Complete this question by entering your answers in the tabs below. Required 1 Required 2 You decide next to assess the company's profitability. Compute the following for both this year and last year: a. The gross margin percentage. (Round your percentage answers to 1 decimal place.) b. The net profit margin percentage. (Round your percentage answers to 1 decimal place.) I a. Gross margin percentage b. Net profit margin percentage This Year Last Year Show less A