Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The comparative financial statements for Prince Company are below: Year 1 Year 2 Income statement: $190,000 112,000 $167,000 100,000 67,000 53,000 14,000 4,000 S 10,000
The comparative financial statements for Prince Company are below: Year 1 Year 2 Income statement: $190,000 112,000 $167,000 100,000 67,000 53,000 14,000 4,000 S 10,000 Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense 78,000 56,000 Pretax income 22,000 8,000 14,000 Income tax Net income Balance sheet: $ 7,000 18,000 34,000 38,000 97,000 Cash 4,000 14,000 40,000 45,000 Accounts receivable (net) Inventory Property and equipment (net) $103,000 $ 16,000 Total assets Current liabilities (no interest) Long-term liabilities (10% interest) Common stock ($5 par value, 6,000 shares outstanding) Retained earnings Total liabilities and stockholders' equity 17,000 45,000 30,000 5,000 97,000 45,000 30,000 12,000 $103,000 Assume that the stock price per share is $28 and that dividends in the amount of $3.50 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 (.e. 0.1234 should be entered as 12.34).) Earnings per share Current ratio Quick ratio Cash ratio Price/earnings ratio Dividend yield ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started