M3 - Protected View - Saved to this PC References Mailings Review View Help ntain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing Question 2 - Comparative financial statements covering the last two years for Molin Company follow (dollar amounts are in thousands). Using the information in the financial statements compute the following ratios: Earnings Per Share Price Earnings Ratio Dividend Payout Ratio Comparative Statements of Financial Position This Year Last Year Change Amount Percent $ 300 Assets Current assets: Cash Accounts receivable Inventory Prepaid expenses. Total current assets Plant and equipment, net Total assets $ 90 800 1,400 60 $ (210) 300 500 0 590 410 $1,000 60 1,760 2.240 $4.000 (70.0) 60.0 55.6 0.0 33.5 18.3 25.0 2,350 2.650 $5,000 $ 650 $1,400 600 $ 750 600 1.350 86.7 0.0 48.1 2.000 Liabilities and Stockholders' Equity Liabilities Current liabilities Bonds payable, 10%. Total liabilities Stockholders' equity Preferred stock $25 par, 7.5% Common stock $10 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity... 400 500 2.100 400 500 1.750 2.650 $4.000 350 350 $1.000 0.0 0.0 20.0 13.2 25.0 $5.000 3- Protected View - Saved to this PC References Mailings Review View Help antain viruses. Unless you need to edit, it's safer to stay in Protected View Enable Editing COMPARATIVE STATEMENTS (cont'd) Comparative Income Statements This Year $9,000 5.930 3,070 2.160 910 60 850 Last Year $8,000 5.100 2,900 2.040 860 Change Amount Percent $1,000 12.5 830 16.3 170 Sales. Cost of goods sold. Gross margin Selling and administrative expenses .. Net operating Income Interest expense. Net income before taxes. Income taxes (40%). Net income. 20 60 340 800 320 $480 Comparative Retained Earnings Statements This Year $1,750 1510 2.260 Last Year $1,420 480 1.900 Change Amount Percent 23.2 6.3 360 $330 18.9 Retained earnings, beginning Add net income... Total Deduct dividends paid Preferred stock Common stock Total Retained earnings, ending 30 30 0.0 8.3 120 130 160 $2.100 150 6.7 $1.750 20.0 Other Information: Current market price for shares are $72.00/share