Question
Straton Corporation has provided the following financial data: Balance Sheet December 31, Year 2 and Year 1 Year 2 Year 1 Assets Current assets: Cash
Straton Corporation has provided the following financial data:
Balance Sheet | ||
---|---|---|
December 31, Year 2 and Year 1 | ||
Year 2 | Year 1 | |
Assets | ||
Current assets: | ||
Cash | $ 208,000 | $ 200,000 |
Accounts receivable, net | 247,000 | 290,000 |
Inventory | 165,000 | 180,000 |
Prepaid expenses | 56,000 | 50,000 |
Total current assets | 676,000 | 720,000 |
Plant and equipment, net | 1,000,000 | 920,000 |
Total assets | $ 1,676,000 | $ 1,640,000 |
Liabilities and Stockholders' Equity | ||
Current liabilities: | ||
Accounts payable | $ 115,000 | $ 120,000 |
Accrued liabilities | 107,000 | 90,000 |
Notes payable, short term | 68,000 | 70,000 |
Total current liabilities | 290,000 | 280,000 |
Bonds payable | 290,000 | 290,000 |
Total liabilities | 580,000 | 570,000 |
Stockholders' equity: | ||
Common stock, $2 par value | 140,000 | 140,000 |
Additional paid-in capital | 90,000 | 90,000 |
Retained earnings | 866,000 | 840,000 |
Total stockholders' equity | 1,096,000 | 1,070,000 |
Total liabilities & stockholders' equity | $ 1,676,000 | $ 1,640,000 |
Income Statement | |
---|---|
For the Year Ended December 31, Year 2 | |
Sales (all on account) | $ 1,320,000 |
Cost of goods sold | 860,000 |
Gross margin | 460,000 |
Operating expenses | 394,769 |
Net operating income | 65,231 |
Interest expense | 22,000 |
Net income before taxes | 43,231 |
Income taxes (35%) | 15,131 |
Net income | $ 28,100 |
Dividends on common stock during Year 2 totaled $2,100. The market price of common stock at the end of Year 2 was $5.56 per share.
Required:
a. What is the companys net profit margin percentage for Year 2?
b. What is the companys gross margin percentage for Year 2?
c. What is the companys return on total assets for Year 2?
d. What is the companys return on equity for Year 2?
e. What is the companys earnings per share for Year 2?
f. What is the companys price-earnings ratio for Year 2?
g. What is the companys dividend payout ratio for Year 2?
h. What is the companys dividend yield ratio for Year 2?
i. What is the companys book value per share at the end of Year 2?
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