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The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $ 194,000 $ 168,000 Cost of goods sold
The comparative financial statements for Prince Company are below:
Year 2 | Year 1 | ||||||
Income statement: | |||||||
Sales revenue | $ | 194,000 | $ | 168,000 | |||
Cost of goods sold | 113,000 | 100,400 | |||||
Gross profit | 81,000 | 67,600 | |||||
Operating expenses and interest expense | 56,400 | 53,200 | |||||
Pretax income | 24,600 | 14,400 | |||||
Income tax | 8,400 | 4,200 | |||||
Net income | $ | 16,200 | $ | 10,200 | |||
Balance sheet: | |||||||
Cash | $ | 4,400 | $ | 7,200 | |||
Accounts receivable (net) | 14,200 | 18,200 | |||||
Inventory | 40,400 | 34,200 | |||||
Property and equipment (net) | 45,600 | 38,400 | |||||
Total assets | $ | 104,600 | $ | 98,000 | |||
Current liabilities (no interest) | $ | 16,200 | $ | 17,200 | |||
Long-term liabilities (10% interest) | 45,200 | 45,200 | |||||
Common stock ($5 par value, 6,080 shares outstanding) | 30,400 | 30,400 | |||||
Retained earnings | 12,800 | 5,200 | |||||
Total liabilities and stockholders' equity | $ | 104,600 | $ | 98,000 | |||
Assume that the stock price per share is $30 and that dividends in the amount of $4.50 per share were paid during Year 2. Compute the following ratios: (Round your answers to 2 decimal places
Earnings per share, Current ratio, Quick ratio, cash ratio, price/earnings ratio, dividend yield ratio %
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