Requirement:

Use the 2015 data for Prince Company. Assume a stock price of $28 per share. Compute the ratios.

Prince Company paid $7,000 out in dividends for the year. Show how you can figure out that the company paid $7,000 out in dividends for the year.

	2015	2014
Income Statement
Sales revenue	190,000	167,000
Cost of goods sold	112,000	100,000
Gross profit	78,000	67,000
Operating expenses and interest expenses	56,000	53,000
Pretax income	22,000	14,000
Income tax	8,000	4,000
Net income	14,000	10,000
Balance Sheet
Cash	4,000	7,000
Accounts receivable (net)	14,000	18,000
Inventory	40,000	34,000
Operational assets (net)	45,000	38,000
Total assets	103,000	97,000
Current liabilities (no interest)	16,000	17,000
Long-term liabilities (10% interest)	45,000	45,000
Common stock (par $5)	30,000	30,000
Retained earnings	12,000	5,000
Total Liabilities and Stockholders Equity	103,000	97,000