Cash Accounts receivable (net) Other current assets Investments Plant and equipment (net) 1. NOVAK CORPORATION Balance Sheets December 31 Current liabilities Long-term debt Common stock, $10 par Retained earnings Net sales Sales revenue Less: Sales returns and allowances Net income Additional information: 2022 $32,000 52,000 93,000 58,000 500,000 $735,000 $87,000 148,000 323,000 177,000 NOVAK CORPORATION Income Statements For the Years Ended December 31 Cost of goods sold Gross profit Operating expenses (including income taxes) 2021 2022 $22,000 $20,000 47,000 98,000 370,000 $610,000 73,000 313,000 127,000 $82,000 $72,000 88,000 53,000 $743,000 43,600 181,870 699,400 428,311 271,089 $89,219 $735,000 $610.000 $543,000 2020 2021 67,000 48,000 358,000 $543,000 50,000 $603,000 32,265 570,735 352,878 217,857 151,764 $66,093 303,000 115,000 The market price of Novak's common stock was $7.00, $7.74, and $8.43 for 2020, 2021, and 2022, respectively. 2. You must compute dividends paid. All dividends were paid in cash.

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Chapter1: Financial Statements And Business Decisions
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Cash
Accounts receivable (net)
Other current assets
1.
Investments
Plant and equipment (net)
Net sales
2.
NOVAK CORPORATION
Balance Sheets
December 31
Current liabilities
Long-term debt
Common stock, $10 par
Retained earnings
Sales revenue
Less: Sales returns and allowances
Net income
Additional information:
2022
$32,000
52,000
93,000
58,000
500,000
$735,000
148,000
Cost of goods sold
Gross profit
Operating expenses (including income taxes)
323,000
177,000
NOVAK CORPORATION
Income Statements
For the Years Ended December 31
2021
$ 22,000
47,000
$87,000 $82,000
2022
98,000
370,000
$610,000
73,000
313,000
127,000
88,000
699,400
428,311
271,089
2021
$20,000
2020
$743,000 $603,000
43,600
115,000
$735,000 $610.000 $543,000
50,000
32,265
570,735
352,878
217,857
181,870 ▷ 151,764
$89,219
$66,093
67,000
48,000
358,000
$543,000
$72,000
53,000
303,000
The market price of Novak's common stock was $7.00, $7.74, and $8.43 for 2020, 2021, and 2022, respectively.
You must compute dividends paid. All dividends were paid in cash.
Transcribed Image Text:Cash Accounts receivable (net) Other current assets 1. Investments Plant and equipment (net) Net sales 2. NOVAK CORPORATION Balance Sheets December 31 Current liabilities Long-term debt Common stock, $10 par Retained earnings Sales revenue Less: Sales returns and allowances Net income Additional information: 2022 $32,000 52,000 93,000 58,000 500,000 $735,000 148,000 Cost of goods sold Gross profit Operating expenses (including income taxes) 323,000 177,000 NOVAK CORPORATION Income Statements For the Years Ended December 31 2021 $ 22,000 47,000 $87,000 $82,000 2022 98,000 370,000 $610,000 73,000 313,000 127,000 88,000 699,400 428,311 271,089 2021 $20,000 2020 $743,000 $603,000 43,600 115,000 $735,000 $610.000 $543,000 50,000 32,265 570,735 352,878 217,857 181,870 ▷ 151,764 $89,219 $66,093 67,000 48,000 358,000 $543,000 $72,000 53,000 303,000 The market price of Novak's common stock was $7.00, $7.74, and $8.43 for 2020, 2021, and 2022, respectively. You must compute dividends paid. All dividends were paid in cash.
(a) Compute the following ratios for 2021 and 2022. (Round earnings per share and asset turnover to 2 decimal places; eg 1.83 and
answers to 1 decimal place, e.g. 1.8 or 1.8%)
Profit margin
Gross profit rate
Asset turnover
Earnings per share
Price-earnings ratio
Payout ratio
Debt to assets ratio
2022
%
%
times
times
%
%
4
$
2021
%
times
times
%
%
Transcribed Image Text:(a) Compute the following ratios for 2021 and 2022. (Round earnings per share and asset turnover to 2 decimal places; eg 1.83 and answers to 1 decimal place, e.g. 1.8 or 1.8%) Profit margin Gross profit rate Asset turnover Earnings per share Price-earnings ratio Payout ratio Debt to assets ratio 2022 % % times times % % 4 $ 2021 % times times % %
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