Ratios Compared with Industry Averages Packard Plastics, Inc., manufactures various plastic and synthetic products. Financial statement data for the firm follow: 2016 (Thousands of Dollars, Sales revenue Cost of goods sold Net income Dividends Earnings per share Except Earnings per Share) $825,000 540,000 50,500 15,000 4.25 Packard Plastics, inc. Balance Sheets (Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015 Assets Cash Accounts receivable (net) Inventory Total Current Assets Plant assets (net) Other assets Total Assets $4,100 66,900 148,000 219,000 215,000 13,900 $447,900 $2,700 60,900 140,000 203,600 194,000 3,900 $401,500 Liabilities and Stockholders' Equity Notes payable-banks Accounts payable Accrued liabilities $31,000 27,600 25,100 83,700 150,000 233,700 125,000 89,200 214,200 $447,900 $25,000 23,000 24,800 72,800 150,000 222,800 125,000 53,700 178,700 $401,500 Total Current Liabilities 10% Bonds payable Total Liabilities Common stock, $10 par value (12,500,000 shares) Retained earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Required a. Using the given data, calculate items 1 through 8 below for 2016. Compare the performance of Packard Plastics, Inc., with the following industry averages and comment on its operations. Round to two decimal points. Median Ratios for Manufacturers of Plastic and Synthetic Products Ratios for Packard Plastics 1. Quick ratlo: 1.2 0.85 2. Current ratio: 1.9 2.62 3. Accounts Receivable Turnover: 7.9 12.91 7.8 3.75 4. Inventory turnover: 5. Debt-to-equity ratio: 6. Gross profit percentage 0.95 1.09 32.7 % 7. Return on sales 3.5 % x% 8. Returm on assets 6.3 % 96 b. Calculate the dividends paid per share of common stock. Round to two decimal points) 1.2 What was the dividend payout ratio? C. If the most recent price per share of common stock is $50.25, what is the price earnings ratlo? 11.82 The dividend yleld? 2.39 Check