Comparative financial statements for Heritage Services for the fiscal year ending December 31 appear in the next couple pages. The company did not issue any new common or preferred shares during the year. A total of 600 common shares were outstanding. The interest rate on the bond payable is 14%, the income tax rate was 40% and the dividend per share for the common shares were $0.75. The market value of the common share at the end of the year was $26. All of the sales for the company are on account. HERITAGE SERVICES COMPARATIVE BALANCE SHEET (dollars in thousands) This year Last Year ASSETS: Current Assets: Cash $ 1,080 $ 1,210 Accounts receivable, net Inventory 9,000 12,000 6,500 10,600 Prepaid Expenses 600 500 Total Current Assets 22,680 18,810 Property and Equipment: Land 9,000 9,000 Building and Equipment, Net 36,800 38,000 Total Property and Equipment 45,800 47,000 TOTAL ASSETS: $68,480 $65,810 LIABILITIES AND SHAREHOLDER EQUITY Current Liabilities: Accounts Payable $18,500 $17,400 Accrued Payable 900 700 Notes Payable, short term 0 100 Total Current Liabilities 19,400 18,200 Long-Term Liabilities: Bonde Doughle 000 Accrued Payable 900 700 Notes Payable, short term 0 100 Total Current Liabilities 19,400 18,200 Long-Term Liabilities: Bonds Payable 8,000 8,000 Total Liabilities 27,400 26,200 Shareholders Equity: Preferred Shares 1,000 1,000 Common Shares 2,000 2,000 Additional paid-up capital 4,000 4,000 Total Paid in Capital 7,000 7,000 Retained Earnings 34,080 32,610 Total Shareholders Equity 41,080 39,610 TOTAL LIABILITIES AND $68,480 $65.810 SHAREHOLDER EQUITY HERITAGE SERVICES COMPARATIVE INCOME STATEMENT (dollars in thousands) This year Last Year Sales $66,000 $64,000 Cost of Goods Sold 43,000 42,000 Gross Margin 23,000 22,000 Selling and Administrative Expenses: Selling Expenses 11,500 11,000 Administrative Expenses 7,400 7,000 Total Selling and Administrative Expenses 18,900 18,000 Net Operating Income 4,100 4,000 Interest Expense 800 800 Net Income before taxes 3,300 3,200 Income Taxes 1,320 1,280 Net Income 1,980 1,920 Dividends paid to preferred shareholders 60 400 Net Income remaining for common shareholders 1,920 1,520 Dividends paid to common shareholders 450 450 Net Income added to retained earnings 1,470 1,070 Retained earning, beginning of year Retained earning, end of year 32,610 31,540 $34,080 $32,610 REQUIRMENT: Compute the following ratios for this year: 1. Gross Margin Percentage 2. Earnings per share for common shareholders 3. Price-earnings ratio. 4. Dividend payout ratio. 5. Dividend yield ratio. 6. Return on total assets. 7. Return on common stockholders' equity. 8. Book value per share