Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

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 $ 220 $ 330
Accounts receivable, net 360 380
Inventory 330 300
Prepaid expenses 20 20
Total current assets 930 1,030
Plant and equipment, net 1,180 1,300
Total assets $ 2,110 $ 2,330
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 300 $ 330
Accrued liabilities 50 50
Notes payable, short term 40 40
Total current liabilities 390 420
Bonds payable 290 500
Total liabilities 680 920
Stockholders equity:
Common stock, $2 par value 200 200
Additional paid-in capital 330 330
Retained earnings 900 880
Total stockholders equity 1,430 1,410
Total liabilities & stockholders equity $ 2,110 $ 2,330

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account) $ 1,560
Cost of goods sold 990
Gross margin 570
Selling and administrative expense 475
Net operating income 95
Interest expense 20
Net income before taxes 75
Income taxes (30%) 23
Net income $ 52

Dividends on common stock during Year 2 totaled $32 thousand. The market price of common stock at the end of Year 2 was $14.00 per share.

Required:

Compute the following for Year 2:

Need these calculations please?

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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image
Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students explore these related Accounting questions

Question

2.6

Answered: 3 weeks ago