Hyrkas Corporation's most recent balance sheet and income statement appear below: Year 2 Year 1 $ 205 330 300 20 855 1,090 $1,945 $ 300 350 270 20 940 1,180 $2,120 Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Assets Current assets: Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets 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 $ 270 50 40 360 260 620 300 50 40 390 410 800 200 330 795 1,325 $1,945 200 330 790 1,320 $2,120 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 $1,460 920 540 445 95 20 75 23 $ 52 Dividends on common stock during Year 2 totaled $47 thousand. The market price of common stock at the end of Year 2 was $8.30 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.) 9. 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.) 1. 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.) m Average collection period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.) 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 pa p. Times interest earned ratio. (Round your answer to 2 decimal places.) 9. Debt-to-equity ratio. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. a b. C. d. 37.0% 0.52 16.0 90.4 % 5.66% 2.67% 26.00 % 13.25 o. g h. Gross margin percentage Earnings per share Price-earings ratio Dividend payout ratio Dividend yield ratio Return on total assets Return on equity Book value per share Working capital Current ratio Acid-test ratio Accounts receivable turnover Average collection period Inventory turnover Average sale period Times Interest earned ratio Debt-to-equity ratio 495 2.38 k 1.49 1 m days n 0 4.29 85.1 2.11 173.0 3.75 0.20 days 9 X
