Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Lundberg Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $40 thousand. The market price of

Lundberg Corporation's most recent balance sheet and income statement appear below:

image text in transcribed

image text in transcribed

Dividends on common stock during Year 2 totaled $40 thousand. The market price of common stock at the end of Year 2 was $9.27 per share.

Required:
a.

Compute the gross margin percentage for Year 2.(Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Gross Margin Percentage: %

b.

Compute the earnings per share (of common stock) for Year 2.(Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Earnings per share: $

c.

Compute the price-earnings ratio for Year 2. (Do not round intermediate calculations. Round your answer to 1 decimal place.)

Price-earning ratio:

d.

Compute the dividend payout ratio for Year 2. (Do not round intermediate calculations. Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Dividend payout ratio: %

e.

Compute the dividend yield ratio for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

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. Omit the "%" sign in your response.)

Return on assets %

g.

Compute the return on common stockholders' equity for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Return on common stockholders' equity %

h.

Compute the book value per share for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Book value per share $

i.

Compute the working capital for Year 2. (Input your answer in thousands of dollars. Omit the "$" sign in your response.)

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 1 decimal place.)

Acid-test ratio

l. 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

n.

Compute the inventory turnover for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Inventory turnover $
o.

Compute the average sale period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 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

q.

Compute the debt-to-equity ratio for Year 2. (Round your answer to 2 decimal places.)

Debt-to-equity ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started

Students also viewed these Accounting questions