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The financial statements for Leslo Inc. are as follows: LESLO INC. Balance Sheet March 31 Assets Current assets: Cash $ 6,500 Accounts receivable, net 35,000

The financial statements for Leslo Inc. are as follows:

LESLO INC.
Balance Sheet
March 31
Assets
Current assets:
Cash $ 6,500
Accounts receivable, net 35,000
Merchandise inventory 70,000
Prepaid expenses 3,500
Total current assets 115,000
Property and equipment, net 185,000
Total assets $ 300,000
Liabilities and Shareholders Equity
Liabilities:
Current liabilities $ 50,000
Bonds payable, 10% 80,000
Total liabilities 130,000
Shareholders equity:
Common shares, no par (6,000 @ $5) $ 30,000
Retained earnings 140,000
Total shareholders equity 170,000
Total liabilities and shareholders equity $ 300,000

LESLO INC.
Income Statement
For the Year Ended March 31
Sales $ 420,000
Less: Cost of goods sold 292,500
Gross margin 127,500
Less: Operating expenses 89,500
Net operating income 38,000
Interest expense 8,000
Net income before taxes 30,000
Income taxes (30%) 9,000
Net income $ 21,000

Account balances at the beginning of the year were as follows: accounts receivable, $25,000; inventory, $60,000. All sales were on account.

Assume that Leslo Inc. paid dividends of $2.10 per share during the year. Also assume that the companys common shares had a market price of $42 each at the end of the year and there was no change in the number of outstanding common shares during the year.

Required:

Compute financial ratios as follows:

1. Earnings per share. (Round your answer to 2 decimal places.)

2. Dividend payout ratio. (Round your intermediate calculations to 2 decimal places. Round your percentage answer to nearest whole number.)

3. Dividend yield ratio. (Round your percentage answer to nearest whole number.)

4. Priceearnings ratio. (Round your intermediate calculations to 2 decimal places. Round your answer to nearest whole number.)

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