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The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $ 206,000 $ 171,000 Cost of goods sold
The comparative financial statements for Prince Company are below:
Year 2 | Year 1 | ||||||
Income statement: | |||||||
Sales revenue | $ | 206,000 | $ | 171,000 | |||
Cost of goods sold | 116,000 | 101,600 | |||||
Gross profit | 90,000 | 69,400 | |||||
Operating expenses and interest expense | 57,600 | 53,800 | |||||
Pretax income | 32,400 | 15,600 | |||||
Income tax | 9,600 | 4,800 | |||||
Net income | $ | 22,800 | $ | 10,800 | |||
Balance sheet: | |||||||
Cash | $ | 5,600 | $ | 7,800 | |||
Accounts receivable (net) | 14,800 | 18,800 | |||||
Inventory | 41,600 | 34,800 | |||||
Property and equipment (net) | 47,400 | 39,600 | |||||
Total assets | $ | 109,400 | $ | 101,000 | |||
Current liabilities (no interest) | $ | 16,800 | $ | 17,800 | |||
Long-term liabilities (10% interest) | 45,800 | 45,800 | |||||
Common stock ($5 par value, 6,320 shares outstanding) | 31,600 | 31,600 | |||||
Retained earnings | 15,200 | 5,800 | |||||
Total liabilities and stockholders' equity | $ | 109,400 | $ | 101,000 | |||
Assume that the stock price per share is $36 and that dividends in the amount of $7.50 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).) Earnings per share Current ratio Quick ratio Cash ratio Pricelearnings ratio Dividend yield ratio
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