| Hyrkas Corporation's most recent balance sheet and income statement appear below:   
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Hyrkas Corporation's most recent balance sheet and income statement appear below: Statement of Financial Position December 31. Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Asset: Current assets: Cash Accounts receivable Inventory Prepaid expenses $ 190 $ 200 300 310 200 190 10 10 Total current assets Plant and equipment, net 700 951 710 931 Total assets $1,651 $1.641 Liabilities and stockholders' equity Current liabilities: Accounts payable Accrued liabilities Notes payable short term $ 250 $ 240 140 140 190 200 Total current liabilities Bonds payable 580 280 580 330 Total liabilities 880 910 Stockholders' equity: Common stock. $1 par value Additional paid-in capital--common stock Retained earnings 100 110 581 100 110 540 Total stockholders' equity 791 750 Total liabilities and stockholders' equity $ 1.851 $ 1.600 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) $1,480 Cost of goods sold 805 Gross margin Selling and administrative expenses 615 426 Net operating income Interest expense 189 46 Net income before taxes Income taxes (30%) 143 43 Net income $ 100 Dividends on common stock during Year 2 totaled $30 thousand. The market price of common stock at the end of Year 2 was $0.35 per share. Required: a. Compute the gross margin percentage for Year 2. (Round your answer to one decimal place. e.g. 0.1234 - 12.3%) Gross margin percentage 39.5% 1 decimal places required. b. Compute the earnings per share (of common stock) for Year 2. (Round your answer to 2 decimal places.) Earnings per share S 1.20 C. Compute the price-earnings ratio for Year 2. (Do not round intermediate calculations. Round your answer to one decimal place.) Price-earnings ratio 7.9 d. Compute the dividend payout ratio for Year 2. (Do not round intermediate calculations. Round your answer to one decimal place. e.g. 0.1234 = 12.3%.) Dividend payout ratio 33.3% e. Compute the dividend yield ratio for Year 2. (Round your answer to 2 decimal places.e.g. 0.1234 = 12.34%.) Dividend yield ratio 4.23% f. Compute the return on total assets for Year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places. e.g. 0.1234 = 12.34%.) Return on total assets 12.51% g. Compute the return on common stockholders' equity for Year 2. (Round your answer to 2 decimal places. e.g. 0.1234 - 12.34%.) Return on common stockholders' equity 14.90% 2 decimal places required. h. Compute the book value per share for Year 2. (Round your answer to 2 decimal places.) Book value per share S 8.31 i. Compute the working capital for Year 2. (Input your answer in thousands of dollars, e.g. $100,000 is 100.) Working capital S 130 j. Compute the current ratio for Year 2. (Round your answer to 2 decimal places.) k. Compute the acid-test ratio for Year 2. (Round your answer to one decimal place.) Acid-test ratio 0.8 1. Compute the accounts receivable turnover for Year 2. (Round your answer to 2 decimal places.) Accounts receivable turnover 305.00 X 2 decimal places required. m. Compute the average collection period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to one decimal place.) Average collection period 78.4 Days n. Compute the inventory turnover for Year 2. (Round your answer to 2 decimal places.) Inventory turnover 4.41 o. Compute the average sale period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to one decimal place.) Average sale period 82.0 Days p. Compute the times interest earned for Year 2. (Round your answer to 2 decimal places.) Times interest eamed 18.96 9. Compute the debt-to-equity ratio for Year 2. (Round your answer to 2 decimal places. e.g. 0.1234 = 0.12) Debt-to-equity ratio 0.33
