Financial statements for Pracht Company appear below:
Pracht Company
Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars) |
| |
Year 2 |
Year 1 |
| Current assets: |
|
|
|
|
| Cash and marketable securities |
$ |
180 |
$ |
170 |
| Accounts receivable, net |
|
130 |
|
100 |
| Inventory |
|
150 |
|
160 |
| Prepaid expenses |
|
50 |
|
60 |
|
|
|
|
|
| Total current assets |
|
510 |
|
490 |
| Noncurrent assets: |
|
|
|
|
| Plant and equipment, net |
|
1,880 |
|
1,800 |
|
|
|
|
|
| Total assets |
$ |
2,390 |
$ |
2,290 |
|
|
|
|
|
| Current liabilities: |
|
|
|
|
| Accounts payable |
$ |
90 |
$ |
140 |
| Accrued liabilities |
|
110 |
|
80 |
| Notes payable, short term |
|
140 |
|
130 |
|
|
|
|
|
| Total current liabilities |
|
340 |
|
350 |
| Noncurrent liabilities: |
|
|
|
|
| Bonds payable |
|
490 |
|
500 |
|
|
|
|
|
| Total liabilities |
|
830 |
|
850 |
|
|
|
|
|
| Stockholders' equity: |
|
|
|
|
| Preferred stock, $10 par, 15% |
|
100 |
|
100 |
| Common stock, $10 par |
|
140 |
|
140 |
| Additional paid-in capital--common stock |
|
200 |
|
200 |
| Retained earnings |
|
1,120 |
|
1,000 |
|
|
|
|
|
| Total stockholders' equity |
|
1,560 |
|
1,440 |
|
|
|
|
|
| Total liabilities and stockholders' equity |
$ |
2,390 |
$ |
2,290 |
|
|
|
|
|
|
Pracht Company
Income Statement
For the Year Ended December 31, Year 2
(dollars in thousands) |
| Sales(all on account) |
$ |
1,700 |
| Cost of goods sold |
|
1,190 |
|
|
|
| Gross margin |
|
510 |
| Selling and administrative expense |
|
200 |
|
|
|
| Net operating income |
|
310 |
| Interest expense |
|
50 |
|
|
|
| Net income before taxes |
|
260 |
| Income taxes(30%) |
|
78 |
|
|
|
| Net income |
$ |
182 |
|
|
|
|
|
Dividends during Year 2 totaled $62 thousand, of which $15 thousand were preferred dividends.
The market price of a share of common stock on December 31, Year 2 was $160.
|
|
Required:
|
| a. |
Compute the earnings per share (of common stock) for Year 2. (Omit the "$" sign in your response. Round your answer to 2 decimal places.)
|
| b. |
Compute the price-earnings ratio for Year 2. (Round your answer to 1 decimal place.)
|
| c. |
Compute the dividend payout ratio for Year 2. (Do not round intermediate calculations. Round your answer to 1 decimal place. Omit the "%" sign in your response.)
|
| d. |
Compute the dividend yield ratio for Year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)
|
| e. |
Compute the return on total assets for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
|
| f. |
Compute the return on common stockholders' equity for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
|
| Return on common stockholders' equity |
% |
| g. |
Compute the book value per share for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
|
| h. |
Compute the working capital for Year 2. (Input your answer in thousands of dollars. Omit the "$" sign in your response.)
|
| i. |
Compute the current ratio for Year 2. (Round your answer to 2 decimal places.)
|
| j. |
Compute the acid-test ratio for Year 2. (Round your answer to 2 decimal places.)
|
| k. |
Compute the accounts receivable turnover for Year 2. (Omit the "$" sign in your response.)
|
| Accounts receivable turnover |
$ |
| l. |
Compute the average collection period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)
|
| Average collection period |
|
| m. |
Compute the inventory turnover for Year 2. (Omit the "$" sign in your response.)
|
| n. |
Compute the average sale period for Year 2. (Use 365 days in a year. Round your answer to 1 decimal place.)
|
| o. |
Compute the times interest earned for Year 2. (Round your answer to 2 decimal places.)
|
| p. |
Compute the debt-to-equity ratio for Year 2. (Round your answer to 2 decimal places.)
|