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The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $ 218,000 $ 174,000 Cost of goods sold
The comparative financial statements for Prince Company are below:
Year 2 | Year 1 | ||||||
Income statement: | |||||||
Sales revenue | $ | 218,000 | $ | 174,000 | |||
Cost of goods sold | 119,000 | 102,800 | |||||
Gross profit | 99,000 | 71,200 | |||||
Operating expenses and interest expense | 58,800 | 54,400 | |||||
Pretax income | 40,200 | 16,800 | |||||
Income tax | 10,800 | 5,400 | |||||
Net income | $ | 29,400 | $ | 11,400 | |||
Balance sheet: | |||||||
Cash | $ | 6,800 | $ | 8,400 | |||
Accounts receivable (net) | 15,400 | 19,400 | |||||
Inventory | 42,800 | 35,400 | |||||
Property and equipment (net) | 49,200 | 40,800 | |||||
Total assets | $ | 114,200 | $ | 104,000 | |||
Current liabilities (no interest) | $ | 17,400 | $ | 19,800 | |||
Long-term liabilities (10% interest) | 46,400 | 46,400 | |||||
Common stock ($5 par value, 6,560 shares outstanding)) | 32,800 | 31,400 | |||||
Retained earnings | 17,600 | 6,400 | |||||
Total liabilities and stockholders' equity | $ | 114,200 | $ | 104,000 | |||
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Assume that the stock price per share is $42 and that dividends in the amount of $10.50 per share were paid during Year 2. Compute the following ratios: (Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).)
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rev: 06_16_2015_QC_CS-17839, 02_01_2017_QC_CS-76919, 02_14_2017_QC_CS-78602
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