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The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $ 198,000 $ 169,000 Cost of goods sold
The comparative financial statements for Prince Company are below:
Year 2 | Year 1 | ||||||
Income statement: | |||||||
Sales revenue | $ | 198,000 | $ | 169,000 | |||
Cost of goods sold | 114,000 | 100,800 | |||||
Gross profit | 84,000 | 68,200 | |||||
Operating expenses and interest expense | 56,800 | 53,400 | |||||
Pretax income | 27,200 | 14,800 | |||||
Income tax | 8,800 | 4,400 | |||||
Net income | $ | 18,400 | $ | 10,400 | |||
Balance sheet: | |||||||
Cash | $ | 4,800 | $ | 7,400 | |||
Accounts receivable (net) | 14,400 | 18,400 | |||||
Inventory | 40,800 | 34,400 | |||||
Property and equipment (net) | 46,200 | 38,800 | |||||
Total assets | $ | 106,200 | $ | 99,000 | |||
Current liabilities (no interest) | $ | 16,400 | $ | 17,400 | |||
Long-term liabilities (10% interest) | 45,400 | 45,400 | |||||
Common stock ($5 par value, 6,160 shares outstanding) | 30,800 | 30,800 | |||||
Retained earnings | 13,600 | 5,400 | |||||
Total liabilities and stockholders' equity | $ | 106,200 | $ | 99,000 | |||
Assume that the stock price per share is $32 and that dividends in the amount of $5.50 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:
Price/earnings ratio:
Dividend yield ratio:
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