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 | $ | 235 |
| $ | 360 |
|
Accounts receivable, net |
| 390 |
|
| 410 |
|
Inventory |
| 360 |
|
| 330 |
|
Prepaid expenses |
| 20 |
|
| 20 |
|
Total current assets |
| 1,005 |
|
| 1,120 |
|
Plant and equipment, net |
| 1,270 |
|
| 1,420 |
|
Total assets | $ | 2,275 |
| $ | 2,540 |
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable | $ | 330 |
| $ | 360 |
|
Accrued liabilities |
| 50 |
|
| 50 |
|
Notes payable, short term |
| 40 |
|
| 40 |
|
Total current liabilities |
| 420 |
|
| 450 |
|
Bonds payable |
| 320 |
|
| 570 |
|
Total liabilities |
| 740 |
|
| 1,020 |
|
Stockholders equity: |
|
|
|
|
|
|
Common stock, $2 par value |
| 200 |
|
| 200 |
|
Additional paid-in capital |
| 330 |
|
| 330 |
|
Retained earnings |
| 1,005 |
|
| 990 |
|
Total stockholders equity |
| 1,535 |
|
| 1,520 |
|
Total liabilities & stockholders equity | $ | 2,275 |
| $ | 2,540 |
|
Income Statement | |||
For the Year Ended December 31, Year 2 | |||
(in thousands of dollars) | |||
Sales (all on account) | $ | 1,590 |
|
Cost of goods sold |
| 1,020 |
|
Gross margin |
| 570 |
|
Selling and administrative expense |
| 505 |
|
Net operating income |
| 65 |
|
Interest expense |
| 20 |
|
Net income before taxes |
| 45 |
|
Income taxes (30%) |
| 14 |
|
Net income | $ | 31 |
|
Dividends on common stock during Year 2 totaled $16 thousand. The market price of common stock at the end of Year 2 was $12.00 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.)
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