Qadir Company

Income Statement

For the Year Ended December 31, Year 2

(dollars in thousands)

Sales (all on account) ......................................... $1,200

Cost of goods sold .............................................. 840

Gross margin ...................................................... 360

Operating expenses ............................................. 140

Net operating income ......................................... 220

Interest expense .................................................. 40

Net income before taxes ..................................... 180

Income taxes (30%) ............................................ 54

Net income ......................................................... $ 126

Dividends during Year 2 totaled $36 thousand, of which $15 thousand were preferred

dividends. The market price of a share of common stock on December 31, Year 2 was

$70.

Required:

Compute the following for Year 2:

a. Earnings per share of common stock.

b. Price-earnings ratio.

c. Dividend yield ratio.

d. Return on total assets.

e. Return on common stockholders' equity.

f. Book value per share