Question
The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $ 210,000 $ 172,000 Cost of goods sold
The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $ 210,000 $ 172,000 Cost of goods sold 117,000 102,000 Gross profit 93,000 70,000 Operating expenses and interest expense 58,000 54,000 Pretax income 35,000 16,000 Income tax 10,000 5,000 Net income $ 25,000 $ 11,000 Balance sheet: Cash $ 6,000 $ 8,000 Accounts receivable (net) 15,000 19,000 Inventory 42,000 35,000 Property and equipment (net) 48,000 40,000 Total assets $ 111,000 $ 102,000 Current liabilities (no interest) $ 17,000 $ 19,000 Long-term liabilities (10% interest) 46,000 46,000 Common stock ($5 par value, 6,400 shares outstanding)) 32,000 31,000 Retained earnings 16,000 6,000 Total liabilities and stockholders' equity $ 111,000 $ 102,000 Assume that the stock price per share is $38 and that dividends in the amount of $8.50 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).) Find: 1. Earnings per share 2. Current Ratio 3. Cash Ratio 4. P/E ratio 5. Dividend yield rate
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