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, Except Earnings per Share) $825,000 540,000 50,500 15,000 4.25 Sales revenue Cost of goods sold Net income Earnings per share Packard Plastics, inc. Balance Sheets (Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015 Assets Cash Accounts receivable (net) Inventory $4,100 $2,700 66,900 60,900 148,000 219,000 215,000 13,900 $447,900 1 Total Current Assets Plant assets (net) Other assets Total Assets 140,000 203,600 194,000 3,900 $401,500 Liabilities and Stockholders' Equity Notes payable-banks Accounts payable Accrued liabilities $31.000 7,600 25,100 $25,000 23,000 24,800 83,700 150,000 233,700222,800 72,800 Total Current Liabilities 150,000 1096 Bonds payable Total Liabilities Common stock, $10 par value (12,500,000 shares Liabilities and Stockholders Equity Notes payable-banks Accounts payable Accrued liabilities 31,000 $25,000 27,600 25,100 83,700 150,000 233,700 125,000 89,200 214,200 $447,900 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 ratio: 1.2 0.85 2. Current ratio: 1.9 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 32.7 % 35.55 | 7. Return on sales 3.5% 6.12 6.3 % 11.89 % 8. Return on assets: b. Calculate the dividends paid per share of common stock. 0.85 2. Current ratio: 2.62 1291 3.75 1.09 35.55 X % 3. Accounts Receivable Turnover: 7.9 4. Inventory turnover 5. Debt-to-equity ratio: 6. Gross profit percentage 7, Return on sales 7.8 0.95 32.7 % 3.5 % 6.12 X % 8. Return on assets: 6.3 % 11.89% % b. Calculate the dividends paid per share of common stock Note: Number of shares shown on balance sheet is not shown in thousands. The number of shares "in thousands" is 12,500 (Round to two decimal points) What was the dividend payout ratio? 29.7 x% c. If the most recent price per share of common stock is $50.25, what is the price- earnings ratio? 11.82 | The dividend yield? 2.39 % Check