Qadri Company

Statement of Financial Position

December 31, Year 2 and Year 1

(dollars in thousands)

Year 2

Year 1

Current assets:

Cash and marketable securities

Php 120

Php 100

Accounts receivable, net

130

120

Inventory

160

180

Prepaid expenses

50

50

Total current assets

460

450

Noncurrent assets:

Plant & equipment, net

1,730

1,730

Total assets

Php2,190

Php2,180

Current liabilities:

Accounts payable

Php 50

Php 100

Accrued liabilities

60

50

Notes payable, short term

160

200

Total current liabilities

270

350

Noncurrent liabilities:

Bonds payable

280

300

Total liabilities

550

650

Stockholders equity:

Preferred stock, Php10 par, 5%

120

120

Common stock, Php10 par

220

220

Additional paid-in capitalcommon stock

110

110

Retained earnings

1,190

1,080

Total stockholders equity

1,640

1,530

Total liabilities & stockholders equity

Php2,190

Php2,180

Qadri Company

Income Statement

For the Year Ended December 31, Year 2

(dollars in thousands)

Sales (all on account)

Php2,300

Cost of goods sold

1,610

Gross margin

690

Selling and administrative expense

270

Net operating income

420

Interest expense

30

Net income before taxes

390

Income taxes (30%)

117

Net income

Php 273

Dividends during Year 2 totaled Php163 thousand, of which Php6 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was Php150.

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.

atrimony Statement of Financial Position December 11 Year Yew 1 (dollars in the You 2 YE Cum Php 12 Php 10 1 Accounts recevable, Inventory Prepaid expemes Total current ist Noncurs Plant it 1.720 1720 2.12 p 2 Map 5 Php 10 0 be se 270 Currenties Accouns puyable Accrued liabilities Notes yale, short term Total current abilities Noncurrent liabilities Hendable Total liabilities Sockholdet Preferred to help Common ock. Per Additional paid in capital common stock Retained coming Total holders' equily Totallibilities & sockholders equity 200 550 60 130 220 110 10 220 110 19 Onde Company Income Same For the Year Ended December 31 Year 2 dollars in thousand 2.10 1610 Sales alles Cost of goods sold Grow margin Selling and dinitive expense Net operating me Interest expense Net inom fees Income se 30% Net Income 390 Dividends during your bed thousand, of which he thousand were perfomedidelsThe market price of a share of costed on December 31. You 2 Php150 Required Compute the following for Year 2 a. Lasing persture of common stock b. Me-camigui c. Divided yield at d. Retum en total c. Recommended quity f. Bok value per share Cadri Company Sum of Financial Position December 31. Year 2 nd Year (dollars in thousands Year 2 Year Current assets Cash and marketable securities Accounts receivable, net Inventory Prepaid expenses Total current sets Noncurrentes Plant & equipment met Totalasses Php 12 Php 10 0 0 130 120 160 180 SO 460 450 1.7301170 Php2.19 Php2.18 9 Current liabilities Php 5 Php 10 0 60 50 200 270 350 140 300 Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Noncurrent liabilities Bonds payable Total liabilities Stockholders' equity Preferred stock, Php10 par, 5% Common stock, Php10 par Additional paid in capital common stock Retained comings Total stockholders equity 290 550 120 120 220 220 110 110 1.190 LORO 1.60 150 Php2.19 Php2.18 9 Totallibilities & stockholders' equity Qadin Company Income Statement For the Year Ended December 31. Year 2 (dollars in thousands Sales all on account) Cost of goods sold Gross margin Selling and administrative expense Net operating income Interest Expense Net income before taxes Income taxes (3096) Php2.30 0 1.610 690 270 420 10 390 1112 Cho 2 3 Net income Dividends during Year 2 totaled Php163 thousand, of which Php6 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was Php150