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The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $ 202,000 $ 170,000 Cost of goods sold
The comparative financial statements for Prince Company are below:
Year 2 | Year 1 | ||||||
Income statement: | |||||||
Sales revenue | $ | 202,000 | $ | 170,000 | |||
Cost of goods sold | 115,000 | 101,200 | |||||
Gross profit | 87,000 | 68,800 | |||||
Operating expenses and interest expense | 57,200 | 53,600 | |||||
Pretax income | 29,800 | 15,200 | |||||
Income tax | 9,200 | 4,600 | |||||
Net income | $ | 20,600 | $ | 10,600 | |||
Balance sheet: | |||||||
Cash | $ | 5,200 | $ | 7,600 | |||
Accounts receivable (net) | 14,600 | 18,600 | |||||
Inventory | 41,200 | 34,600 | |||||
Property and equipment (net) | 46,800 | 39,200 | |||||
Total assets | $ | 107,800 | $ | 100,000 | |||
Current liabilities (no interest) | $ | 16,600 | $ | 18,200 | |||
Long-term liabilities (10% interest) | 45,600 | 45,600 | |||||
Common stock ($5 par value, 6,240 shares outstanding)) | 31,200 | 30,600 | |||||
Retained earnings | 14,400 | 5,600 | |||||
Total liabilities and stockholders' equity | $ | 107,800 | $ | 100,000 | |||
Assume that the stock price per share is $34 and that dividends in the amount of $6.50 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).) Ratios: Earnings per share, Current ratio, Quick ratio, P/E ratio, Dividend yield ratio.
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