Hyrkas Corporation’s most recent balance sheet and income statement appear below:
Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars) Year 2Year 1 Asset: Current assets: Cash$140 $150 Accounts receivable 250 260 Inventory 150 140 Prepaid expenses 15 15
Total current assets 555 565 Plant and equipment, net 956 936
Total assets$1,511 $1,501
Liabilities and stockholders’ equity: Current liabilities: Accounts payable$200 $190 Accrued liabilities 90 90 Notes payable, short term 140 150
Total current liabilities 430 430 Bonds payable 230 280
Total liabilities 660 710
Stockholders’ equity: Common stock, $1 par value 100 100 Additional paid-in capital–common stock 110 110 Retained earnings 641 565
Total stockholders’ equity 851 775
Total liabilities and stockholders’ equity$1,511 $1,485
For the Year Ended December 31, Year 2
(in thousands of dollars) Sales (all on account)$1,370 Cost of goods sold 854
Gross margin 516 Selling and administrative expenses 253
Net operating income 263 Interest expense 35
Net income before taxes 228 Income taxes (30%) 68
Net income$160
Dividends on common stock during Year 2 totaled $60 thousand. The market price of common stock at the end of Year 2 was $9.40 per share.
Compute the gross margin percentage for Year 2.
(Round your answer to one decimal place. e.g. 0.1234 = 12.3%.)
Compute the earnings per share (of common stock) for Year 2.
Compute the price-earnings ratio for Year 2.
(Do not round intermediate calculations. Round your answer to one decimal place.)
Compute the dividend payout ratio for Year 2.
(Do not round intermediate calculations. Round your answer to one decimal place. e.g. 0.1234 = 12.3%.)
Compute the dividend yield ratio for Year 2.
(Round your answer to 2 decimal places. e.g. 0.1234 = 12.34%.)
Compute the return on total assets for Year 2.
(Do not round intermediate calculations. Round your answer to 2 decimal places. e.g. 0.1234 = 12.34%.)
Compute the return on common stockholders’ equity for Year 2.
Compute the book value per share for Year 2.
(Round your answer to 2 decimal places.)
Compute the working capital for Year 2.
(Input your answer in thousands of dollars, e.g. $100,000 is 100.)
Compute the current ratio for Year 2.
Compute the acid-test ratio for Year 2.
(Round your answer to one decimal place.)
l.
Compute the accounts receivable turnover for Year 2.
m.
Compute the average collection period for Year 2.
(Use 365 days in a year. Do not round intermediate calculations. Round your answer to one decimal place.)
n.
Compute the inventory turnover for Year 2.
o.
Compute the average sale period for Year 2.
p.
Compute the times interest earned for Year 2.
q.
Compute the debt-to-equity ratio for Year 2.
(Round your answer to 2 decimal places. e.g. 0.1234 = 0.12)
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