Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $240370 420 340 20 1,150 1,460 $2,330 $2,610 400 370 20 1, 030 1,300 Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: 340370 50 40 460 585 1,045 Accounts payable Accrued liabilities 50 4 0 430 330 760 Notes payable, short term Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock, Additional paid-in capital Retained earnings $2 par value 200 330 1.040 1,570 $2,330 200 330 1,035 1,565 $2,610 Total stockholders' equity Total liabilities&stockholders' equity Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) $1,600 1.030 570 515 Sales (all on account) Cost of goods sold Gross margin Selling and administrative expense Net operating income Interest expense Net income before taxes Income taxes (30%) Net income 2 0 35 $24 Required Compute the following for Year 2 a. Gross margin percentage. (Round your answer to 1 decimal place.) b. Earnings per share. (Round your answer to 2 decimal places.) c. Price-earnings ratio. (Do not round intermediate calculations. Round your answer to 1 decimal place.) d. Dividend payout ratio. (Do not round intermediate calculations. Round your "Percentage" answer to 1 decimal place.) e. Dividend yield ratio. (Round your "Percentage" answer to 2 decimal places.) f. Return on total assets. (Do not round intermediate calculations. Round your "Percentage" answer to 2 decimal places.) g. Return on equity. (Round your "Percentage" answer to 2 decimal places.) h. Book value per share. (Round your answer to 2 decimal places.) i. Working capital. (Input your answer in thousands of dollars.) j. Current ratio. (Round your answer to 2 decimal places.) k. Acid-test (quick) ratio. (Round your answer to 2 decimal places.) l. Accounts receivable turnover. (Round your answer to 2 decimal places.) m. Average collection period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.) n. Inventory turnover. (Round your answer to 2 decimal places.) o. Average sale period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.) p. Times interest earned ratio. (Round your answer to 2 decimal places.) q. Debt-to-equity ratio. (Round your answer to 2 decimal places.) a. Gross margin percentage b. Earnings per share c. Price-earnings ratio d. Dividend payout ratio e. Dividend yield ratico f. Return on total assets g. Return on equity h. Book value per share i. Working capital j. Current ratio k. Acid-test ratio I. Accounts receivable turnover m. Average collection period n. Inventory turnover o. Average sale period p. | Times interest earned ratio q. Debt-to-equity ratio days days Dividends on common stock during Year 2 totaled $19 thousand. The market price of common stock at the end of Year 2 was $3.00 per share. Required
