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Siam Corporation's most recent balance sheet and income statement appear below: Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of
Siam Corporation's most recent balance sheet and income statement appear below:
Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars)
Year 2
Year 1
Assets
Current assets:
Cash
Php 100
Php 140
Accounts receivable
160
180
Inventory
210
190
Prepaid expenses
40
50
Total current assets
510
560
Plant and equipment, net
860
820
Total assets
Php1,370
Php1,380
Liabilities and Stockholders Equity
Current liabilities:
Accounts payable
Php 160
Php 180
Accrued liabilities
80
80
Notes payable, short term
80
80
Total current liabilities
320
340
Bonds payable
70
100
Total liabilities
390
440
Stockholders equity:
Preferred stock, Php100 par value, 10%
200
200
Common stock, Php1 par value
200
200
Additional paid-in capitalcommon stock
130
130
Retained earnings
450
410
Total stockholders equity
980
940
Total liabilities & stockholders equity
Php1,370
Php1,380
Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)
Php1,350
Cost of goods sold
820
Gross margin
530
Selling and administrative expense
399
Net operating income
131
Interest expense
17
Net income before taxes
114
Income taxes (30%)
34
Net income
Php 80
Dividends on common stock during Year 2 totaled Php20 thousand. Dividends on preferred stock totaled Php20 thousand. The market price of common stock at the end of Year 2 was Php2.88 per share.
Required:
Compute the following for Year 2:
a. Gross margin percentage.
b. Earnings per share (of common stock).
c. Price-earnings ratio.
d. Dividend payout ratio.
e. Dividend yield ratio.
f. Return on total assets.
g. Return on common stockholders' equity.
h. Book value per share.
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