P13-7 (Algo) Analyzing Financial Statements Using Ratios LO 13-4, 13-6, 13-8

The comparative financial statements for Prince Company are below:

	Year 2				Year 1
Income statement:
Sales revenue	$	216,000			$	173,500
Cost of goods sold		118,500				102,600
Gross profit		97,500				70,900
Operating expenses and interest expense		58,600				54,300
Pretax income		38,900				16,600
Income tax		10,600				5,300
Net income	$	28,300			$	11,300
Balance sheet:
Cash	$	6,600			$	8,300
Accounts receivable (net)		15,300				19,300
Inventory		42,600				35,300
Property and equipment (net)		48,900				40,600
Total assets	$	113,400			$	103,500
Current liabilities (no interest)	$	17,300			$	18,300
Long-term liabilities (12% interest)		46,300				46,300
Common stock ($8 par value, 4,075 shares outstanding)		32,600				32,600
Retained earnings		17,200				6,300
Total liabilities and stockholders' equity	$	113,400			$	103,500

Assume that the stock price per share is $41 and that dividends in the amount of $10.00 per share were paid during Year 2. Compute the following ratios: (Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)

REQUIRED:

1. Earnings Per Share
2. Current Ratio
3. Quick Ratio
4. Cash Ratio
5. Price/Earnings Ratio
6. Dividend Yield Ratio