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The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $ 196,000 $ 168,500 Cost of goods sold
The comparative financial statements for Prince Company are below:
Year 2 | Year 1 | ||||||
Income statement: | |||||||
Sales revenue | $ | 196,000 | $ | 168,500 | |||
Cost of goods sold | 113,500 | 100,600 | |||||
Gross profit | 82,500 | 67,900 | |||||
Operating expenses and interest expense | 56,600 | 53,300 | |||||
Pretax income | 25,900 | 14,600 | |||||
Income tax | 8,600 | 4,300 | |||||
Net income | $ | 17,300 | $ | 10,300 | |||
Balance sheet: | |||||||
Cash | $ | 4,600 | $ | 7,300 | |||
Accounts receivable (net) | 14,300 | 18,300 | |||||
Inventory | 40,600 | 34,300 | |||||
Property and equipment (net) | 45,900 | 38,600 | |||||
Total assets | $ | 105,400 | $ | 98,500 | |||
Current liabilities (no interest) | $ | 16,300 | $ | 17,600 | |||
Long-term liabilities (12% interest) | 45,300 | 45,300 | |||||
Common stock ($8 par value, 3,825 shares outstanding)) | 30,600 | 30,300 | |||||
Retained earnings | 13,200 | 5,300 | |||||
Total liabilities and stockholders' equity | $ | 105,400 | $ | 98,500 | |||
Assume that the stock price per share is $31 and that dividends in the amount of $5.00 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).)
Calculate:
1. Earnings per share ratio
2. Current ratio
3. Quick ratio
4. Cash ratio
5. P/E ratio
6. Dividend yield ratio
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