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 Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets $ 185 290 260 20 755 970 $1,725 $ 260 310 230 20 820 1,020 $1,840 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 $ 230 50 40 320 220 540 $ 260 50 40 350 330 680 200 330 655 1, 185 $1,725 200 330 630 1, 160 $1,840 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 incone before taxes Income taxes (30%) Net income $1,330 830 500 405 95 20 75 23 $ 52 Dividends on common stock during Year 2 totaled $27 thousand. The market price of common stock at the end of Year 2 was $16.30 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.) 1. 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.) Working capital (Input your answer in thousands of dollars.) Current ratio. (Round your answer to 2 decimal places.) k. Acid-test (quick) ratio. (Round your answer to 2 decimal places.) Accounts receivable turnover (Round your answer to 2 decimal places.) 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 "Percentago" answer to 1 decimal place.) e. Dividend yield ratio. (Round your "Percentage" answer to 2 decimal places.) 1. 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.) n. Book value per share. (Round your answer to 2 decimal places.) 1. 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.) 1. Accounts recevable 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 sole 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.) 4. Debt-to-equity ratio. (Round your answer to 2 decimal places)
