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please provide all required material for a thumbs up! Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on

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Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patents. Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is requesting a $650,000 long-term loan from Gulfport State Bank, $175,000 of which will be used to bolster the Cash occount and $475,000 of which will be used to modernize equipment. The company's financial statements for the two most recent years follow Sabin Electronics Comparative Balance Sheet This Year Let Your Assets Current assets Cash 130,000 $ 300,000 Marketable securities 0 12,000 Accounts receivable, bet 672,000 450.000 Inventory 1.095,000 745,000 Prepaid expenser 34,000 37.000 Total current Assets 1.931,000 1.544,000 Plant and equipment, net 2.999,400 1,520,000 Total assets $4,030,400 33,060,000 Liabilities and stockholders Equity Liabilities Current Liabilities 025,000 450,000 Donde payable, 120 250.000 750.000 Total liabilities 1.625,000 1.200.000 Stockholdere equity Common stock 515 par 340,000 140,000 Retained earning 1.565 400 1.024,000 Total stockholders' equity 2,405,400 1,864,000 Total abilities and stockholders equity $4.030,400 33,066,000 5 Sabin Electronics Comparative Income Statement and Reconciliation This Year Last Year Sales $ 5,750,000 $ 4,800,000 Cost of goods sold 4,025,000 3.600.000 Cross margin 1,725,000 1,200.000 Selling and administrative expenses 683,000 578.000 Net operating Income 1,042,000 622.000 Interest expense 90.000 90,000 Net Income before taxes 952,000 532,000 Income taxes (301) 285,600 159.600 Net Income 666,400 372,400 Common dividends 125,000 104,000 Not incomo retained 541,400 268,400 Beginning retained earnings 1,024,000 755,600 Ending retained earnings $1,565,400 51,024,000 During the past year, the company Introduced several new product lines and raised the selling prices on a number of old product lines In order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several new territories. Sales terms are 2/10, 1/30. All sales are on account Assume Paul Sabin has asked you to assess his company's profitability and stock market performance Required: 1. You decide first to assess the company's stock market performance. For both this year and last year, compute: a. The earnings per share. There has been no change in common stock over the last two years. b. The dividend yield ratio. The company's stock is currently selling for $50 per share; last year it sold for $45 per share. c. The dividend payout ratio d. The price-earnings ratio. (Assume that the Industry norm for the price-earnings ratio is 8) e. The book value per share of common stock. 2. You decide next to assess the company's profitability, compute the following for both this year and last year: a. The gross margin percentage. b. The net profit margin percentage, c. The return on total assets. (Total assets at the beginning of last year were $3,024,000.) d. The return on equity. (Stockholders' equity at the beginning of last year was $1,854,000.) e. Is the company's financial leverage positive or negative? Required 1 Required 2 You decide first to assess the company's stock market performance. For both this year and last year, compute: a. The earnings per share. There has been no change in common stock over the last two years. (Round your answers to 2 decimal places.) b. The dividend yield ratio. The company's stock is currently selling for $50 per share; last year it sold for $45 per share. (Do not round intermediate calculations. Round your percentage answers to 1 decimal place (6.0.1234 should be entered as 12.3).) C. The dividend payout ratio. (Do not round intermediate calculations. Round your percentage answers to 1 decimal place (.e. 0.1234 should be entered as 12.3).) d. The price-earnings ratio. (Assume that the industry norm for the price-earnings ratio is 8.) (Do not round Intermediate calculations. Round your answers to 2 decimal places.) a. The book value per share of common stock. (Round your answers to 2 decimal places.) Show less This Your Last Year a. Eamings por shore b. Dividend yield ratio c. Dividend payout ratio d. Price-earings ratio e. Book value per share % % Red Required 2 > Required 1 Required 2 You decide next to assess the company's profitability. Compute the following for both this year and last year: a. The gross margin percentage. (Round your percentage answers to 1 decimal place.) b. The net profit margin percentage. (Round your percentage answers to 1 decimal place.) C. The return on total assets. (Total assets at the beginning of last year were $3,024,000) (Round your percentage answers to 1 decimal place.) d. The return on equity. (Stockholders' equity at the beginning of last year was $1,854,000.) (Round your percentage answers to 1 decimal place.) e. Is the company's financial leverage positive or negative? Show less This Year % % % a. Gross margin percentage . Net profit margin percentage c. Return on total assets d. Return on equity o. Financial Leverage Last Year % % % % %

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