FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Question
Hyrkas Corporation's most recent
| Balance Sheet | ||
| December 31, Year 2 and Year 1 | ||
| (in thousands of dollars) | ||
| Year 2 | Year 1 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash | $ 210 | $ 310 |
| 340 | 360 | |
| Inventory | 310 | 280 |
| Prepaid expenses | 20 | 20 |
| Total current assets | 880 | 970 |
| Plant and equipment, net | 1,120 | 1,220 |
| Total assets | $ 2,000 | $ 2,190 |
| Liabilities and |
||
| Current liabilities: | ||
| Accounts payable | $ 280 | $ 310 |
| Accrued liabilities | 50 | 50 |
| Notes payable, short term | 40 | 40 |
| Total current liabilities | 370 | 400 |
| Bonds payable | 270 | 440 |
| Total liabilities | 640 | 840 |
| Stockholders’ equity: | ||
| Common stock, $2 par value | 200 | 200 |
| Additional paid-in capital | 330 | 330 |
| 830 | 820 | |
| Total stockholders’ equity | 1,360 | 1,350 |
| Total liabilities & stockholders’ equity | $ 2,000 | $ 2,190 |
| Income Statement | |
| For the Year Ended December 31, Year 2 | |
| (in thousands of dollars) | |
| Sales (all on account) | $ 1,490 |
|---|---|
| Cost of goods sold | 940 |
| Gross margin | 550 |
| Selling and administrative expense | 455 |
| Net operating income | 95 |
| Interest expense | 20 |
| Net income before taxes | 75 |
| Income taxes (30%) | 23 |
| Net income | $ 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.
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 decimal 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 decimal 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.k. Acid-test (quick) ratio. (Round your answer to 2 decimal places.)
l. 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 intermediate 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.)
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