Question
Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year
Hyrkas Corporation's most recent balance sheet and income statement appear below:
Balance Sheet | ||
December 31, Year 2 and Year 1 | ||
(in thousands of dollars) | ||
Year 2 | Year 1 | |
---|---|---|
Assets | ||
Current assets: | ||
Cash | $ 165 | $ 220 |
Accounts receivable, net | 250 | 270 |
Inventory | 220 | 190 |
Prepaid expenses | 20 | 20 |
Total current assets | 655 | 700 |
Plant and equipment, net | 850 | 860 |
Total assets | $ 1,505 | $ 1,560 |
Liabilities and Stockholders' Equity | ||
Current liabilities: | ||
Accounts payable | $ 190 | $ 220 |
Accrued liabilities | 50 | 50 |
Notes payable, short term | 40 | 40 |
Total current liabilities | 280 | 310 |
Bonds payable | 180 | 210 |
Total liabilities | 460 | 520 |
Stockholders equity: | ||
Common stock, $2 par value | 200 | 200 |
Additional paid-in capital | 330 | 330 |
Retained earnings | 515 | 510 |
Total stockholders equity | 1,045 | 1,040 |
Total liabilities & stockholders equity | $ 1,505 | $ 1,560 |
Income Statement | |
For the Year Ended December 31, Year 2 | |
(in thousands of dollars) | |
Sales (all on account) | $ 1,230 |
---|---|
Cost of goods sold | 760 |
Gross margin | 470 |
Selling and administrative expense | 365 |
Net operating income | 105 |
Interest expense | 20 |
Net income before taxes | 85 |
Income taxes (30%) | 26 |
Net income | $ 59 |
Dividends on common stock during Year 2 totaled $54 thousand. The market price of common stock at the end of Year 2 was $13.30 per share.
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.)
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