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Dividends on common stock during Year 2 ?totaled $ 1 5 ?thousand. The market price of common stock at the end of Year 2 ?was


Dividends on common stock during Year 2 ?totaled $15 ?thousand. The market price of common stock at the end of Year 2 ?was $16.30 ?per share.


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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.)

Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Assets Year 2 Year 1 Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets $ 190 300 270 20 780 1,000 $ 1,780 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock, $2 par value Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities & stockholders' equity Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) 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 $ 1,340 840 500 415 85 20 65 20 $ 45 $ 270 320 240 20 850 1,060 $ 1,910 $ 240 $ 270 50 50 40 40 330 360 230 360 560 720 200 200 330 330 690 660 1,220 1,190 $ 1,780 $ 1,910

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