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 20 20 Total current assets Plant and equipment, net 710 720 981961 Total assets $1,691 $1,681 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 860 910 Stockholders' equity: Common stock, $1 par value Additional paid-in capital-common stock Retained earnings 100 110 621 100 110 570 Total stockholders' equity 831 780 Total liabilities and stockholders' equity $1,691 $1,690 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) $1,420 Cost of goods sold 859 Gross margin Selling and administrative expenses 561 350 211 Net operating income Interest expense 40 Net income before taxes Income taxes (30%) Net income $ 120 Dividends on common stock during Year 2 totaled $40 thousand. The market price of common stock at the end of Year 2 was $9.45 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% b. Compute the earnings per share (of common stock) for Year 2. (Round your answer to 2 decimal places.) Earnings per shares 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 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 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 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 h. Compute the book value per share for Year 2. (Round your answer to 2 decimal places.) Book value per share i. Compute the working capital for Year 2. (Input your answer in thousands of dollars, e.g. $100,000 is 100.) Working capital j. Compute the current ratio for Year 2. (Round your answer to 2 decimal places.) Current ratio k. Compute the acid-test ratio for Year 2. (Round your answer to one decimal place.) Acid-test ratio I. Compute the accounts receivable turnover for Year 2. (Round your answer to 2 decimal places.) Accounts receivable turnover 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 Days n. Compute the inventory turnover for Year 2. (Round your answer to 2 decimal places.) Inventory turnover 0. 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 Days p. Compute the times interest earned for Year 2. (Round your answer to 2 decimal places.) Times interest earned 4. 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
