Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

May I get help with this Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year

May I get help with this 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 $ 190 $ 270
Accounts receivable, net 300 320
Inventory 270 240
Prepaid expenses 20 20
Total current assets 780 850
Plant and equipment, net 1,000 1,060
Total assets $ 1,780 $ 1,910
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 240 $ 270
Accrued liabilities 50 50
Notes payable, short term 40 40
Total current liabilities 330 360
Bonds payable 230 360
Total liabilities 560 720
Stockholders' equity:
Common stock, $2 par value 200 200
Additional paid-in capital 330 330
Retained earnings 690 660
Total stockholders' equity 1,220 1,190
Total liabilities & stockholders' equity $ 1,780 $ 1,910

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account) $ 1,340
Cost of goods sold 840
Gross margin 500
Selling and administrative expense 415
Net operating income 85
Interest expense 20
Net income before taxes 65
Income taxes (30%) 20
Net income $ 45

Dividends on common stock during Year 2 totaled $15 thousand. The market price of common stock at the end of Year 2 was $16.30 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.)

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.)

a. Gross margin percentage 37.3 %
b. Earnings per share
c. Price-earnings ratio
d. Dividend payout ratio %
e. Dividend yield ratio %
f. Return on total assets %
g. Return on equity %
h. Book value per share
i. Working capital
j. Current ratio
k. Acid-test ratio
l. Accounts receivable turnover
m. Average collection period days
n. Inventory turnover
o. Average sale period days
p. Times interest earned ratio
q. Debt-to-equity ratio

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: 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

Recommended Textbook for

Managerial Accounting

Authors: James Jiambalvo

7th Edition

1119577721, 978-1119577720

More Books

Students also viewed these Accounting questions