Question
Selected items from successive annual reports of Middlebrook, Inc., appear as follows. Year 2 Year 1 Total assets (40% of which are current) $ 488,000
Selected items from successive annual reports of Middlebrook, Inc., appear as follows.
| Year 2 |
| Year 1 | ||||
Total assets (40% of which are current) | $ | 488,000 |
|
| $ | 326,000 |
|
Current liabilities | $ | 80,000 |
|
| $ | 100,000 |
|
Bonds payable, 12% |
| 100,000 |
|
|
| 50,000 |
|
Capital stock, $5 par value |
| 100,000 |
|
|
| 100,000 |
|
Retained earnings |
| 208,000 |
|
|
| 76,000 |
|
Total liabilities & stockholders' equity | $ | 488,000 |
|
| $ | 326,000 |
|
Dividends of $16,000 were declared and paid in year 2.
a. Compute the current ratio for year 2 and year 1. (Round your answers to 1 decimal place.)
b. Compute the debt ratio for year 2 and year 1. (Round your percentage answers to nearest whole percent. i.e. 0.1234 as 12%.)
c. Compute the earnings per share for year 2. (Round your answer to 2 decimal places.)
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