Year 1 Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Assets Current assets: Cash $ 210 Accounts receivable, net 340 Inventory 310 Prepaid expenses 29 Total current assets 880 Plant and equipment, net 1,129 Total assets $ 2,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 289 Accrued liabilities 50 Notes payable, short term 40 Total current liabilities 379 Bonds payable 279 Total liabilities Stockholders' equity: Common stock, $2 par value 203 Additional paid-in capital 338 Retained earnings 830 Total stockholders' equity 1, 360 Total liabilities & stockholders' equity $ 2.ee $ 310 360 280 20 970 1,220 $ 2,190 $ 310 50 40 400 440 840 640 200 33e 820 1,35e $ 2,190 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) Cost of goods sold Gross margin Selling and administrative expense Net operating income Interest expense Net income before taxes Income taxes (30%) Net income $ 1,490 940 550 455 95 20 75 23 $ 52 Dividends on common stock during Year 2 totaled $42 thousand. The market price of common stock at the end of Year 2 was $11.20 per share. Dividends on common stock during Year 2 totaled $42 thousand. The market price of common stock at the end of Year 2 was $11.20 per share. Required: Compute the following for Year 2: a. Gross margin percentage. (Round your answer to 1 decimal place.) b. Earnings per share. (Round your answer to 2 decimal places.) c. Price-earnings ratio. (Do not round Intermediate calculations. Round your answer to 1 declmal place.) d. Dividend payout ratio. (Do not round Intermediate calculations. Round your "Percentage" answer to 1 decimal place.) e. Dividend yield ratio. (Round your "Percentage" answer to 2 decimal places.) f. Return on total assets. (Do not round Intermediate calculations. Round your "Percentage" answer to 2 declmal places.) g. Return on equity. (Round your "Percentage" answer to 2 decimal places.) h. Book value per share. (Round your answer to 2 decimal places.) i. Working capital. (Input your answer in thousands of dollars.) j. Current ratio. (Round your answer to 2 decimal places.) k. Acid-test (quick) ratio. (Round your answer to 2 decimal places.) 1. Accounts receivable turnover. (Round your answer to 2 decimal places.) m. Average collection period. (Use 365 days in a year. Do not round Intermediate calculations. Round your answer to 1 decimal place.) n. Inventory turnover. (Round your answer to 2 decimal places.) o. Average sale period. (Use 365 days in a year. Do not round Intermedlate calculations. Round your answer to 1 decimal place.) p. Times interest earned ratio. (Round your answer to 2 decimal places.) q. Debt-to-equity ratio. (Round your answer to 2 decimal places.) 96 96 el % a. Gross margin percentage b. Earnings per share c. Price-earings ratio d. Dividend payout ratio e. Dividend yield ratio f. Return on total assets g. Return on equity h. Book value per share i. Working capital li. Current ratio k. Acid-test ratio L. Accounts receivable turnover m. Average collection period n. Inventory turnover o. Average sale period p. Times interest earned ratio 9. Debt-to-equity ratio days days
