TB Problem Qu. 15-257 Hyrkas Corporation's most recent balance ...

Hyrkas Corporation's most recent balance sheet and income statement appear below:

Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
	Year 2			Year 1
Assets
Current assets:
Cash	$	170		$	230
Accounts receivable, net		260			280
Inventory		230			200
Prepaid expenses		20			20
Total current assets		680			730
Plant and equipment, net		880			900
Total assets	$	1,560		$	1,630
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	200		$	230
Accrued liabilities		50			50
Notes payable, short term		40			40
Total current liabilities		290			320
Bonds payable		190			240
Total liabilities		480			560
Stockholders equity:
Common stock, $2 par value		200			200
Additional paid-in capital		330			330
Retained earnings		550			540
Total stockholders equity		1,080			1,070
Total liabilities & stockholders equity	$	1,560		$	1,630

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$	1,240
Cost of goods sold		770
Gross margin		470
Selling and administrative expense		375
Net operating income		95
Interest expense		20
Net income before taxes		75
Income taxes (30%)		23
Net income	$	52

Dividends on common stock during Year 2 totaled $42 thousand. The market price of common stock at the end of Year 2 was $17.90 per share.

Required:

Compute the following for Year 2:

a. Gross margin percentage. (Round your answer to 1 decimal place.)

b. Earnings per share. (Round your answer to 2 decimal places.)

c. Price-earnings ratio. (Do not round intermediate calculations. Round your answer to 1 decimal place.)

d. Dividend payout ratio. (Do not round intermediate calculations. Round your "Percentage" answer to 1 decimal place.)

e. Dividend yield ratio. (Round your "Percentage" answer to 2 decimal places.)

f. Return on total assets. (Do not round intermediate calculations. Round your "Percentage" answer to 2 decimal places.)

g. Return on equity. (Round your "Percentage" answer to 2 decimal places.)

h. Book value per share. (Round your answer to 2 decimal places.)

i. Working capital. (Input your answer in thousands of dollars.)

j. Current ratio. (Round your answer to 2 decimal places.)

k. Acid-test (quick) ratio. (Round your answer to 2 decimal places.)

l. Accounts receivable turnover. (Round your answer to 2 decimal places.)

m. Average collection period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)

n. Inventory turnover. (Round your answer to 2 decimal places.)

o. Average sale period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)

p. Times interest earned ratio. (Round your answer to 2 decimal places.)

q. Debt-to-equity ratio. (Round your answer to 2 decimal places.)

-----------------------

Answer a.

Gross Margin Percentage = Gross Profit / Sales Gross Margin Percentage = $470 / $1,240 Gross Margin Percentage = 0.3790 or 37.90%

Answer b.

Number of common stock outstanding = Common Stock / Par Value Number of common stock outstanding = $200 / $2 Number of common stock outstanding = 100

Earnings per share = Net Income / Number of common stock outstanding Earnings per share = $52 / 100 Earnings per share = $0.52

Answer c.

Price-earnings Ratio = Market Price per share / Earnings per share Price-earnings Ratio = $17.90 / $0.52 Price-earnings Ratio = 34.42

Answer d.

Dividend Payout Ratio = Dividend on Common Stock / Net Income Dividend Payout Ratio = $42 / $52 Dividend Payout Ratio = 0.8077 or 80.77%

Answer e.

Dividend per share = Dividend on Common Stock / Number of common stock outstanding Dividend per share = $42 / 100 Dividend per share = $0.42

Dividend Yield Ratio = Dividend per share / Market Price per share Dividend Yield Ratio = $0.42 / $17.90 Dividend Yield Ratio = 0.0235 or 2.35%

need F to Q