Financial statements for Qabar Company appear below:
Qabar Company
Statement of Financial Position
December 31, Year 2 and Year 1
(dollars in thousands)
|
Year 2
|
Year 1
|
|
Current assets:
|
|
|
|
Cash and marketable securities
|
$ 140
|
$ 140
|
|
Accounts receivable, net
|
180
|
160
|
|
Inventory
|
160
|
160
|
|
Prepaid expenses
|
70
|
60
|
|
Total current assets
|
550
|
520
|
|
Noncurrent assets:
|
|
|
|
Plant & equipment, net
|
1,530
|
1,440
|
|
Total assets
|
$2,080
|
$1,960
|
|
Current liabilities:
|
|
|
|
Accounts payable
|
$ 190
|
$ 180
|
|
Accrued liabilities
|
60
|
80
|
|
Notes payable, short term
|
150
|
190
|
|
Total current liabilities
|
400
|
450
|
|
Noncurrent liabilities:
|
|
|
|
Bonds payable
|
260
|
300
|
|
Total liabilities
|
660
|
750
|
|
Stockholders' equity:
|
|
|
|
Preferred stock, $10 par, 5%
|
100
|
100
|
|
Common stock, $10 par
|
180
|
180
|
|
Additional paid-in capital--common stock
|
270
|
270
|
|
Retained earnings
|
870
|
660
|
|
Total stockholders' equity
|
1,420
|
1,210
|
|
Total liabilities & stockholders' equity
|
$2,080
|
$1,960
|
Qabar Company
Income Statement
For the Year Ended December 31, Year 2
(dollars in thousands)
|
Sales (all on account)
|
$2,200
|
|
Cost of goods sold
|
1,540
|
|
Gross margin
|
660
|
|
Operating expenses
|
260
|
|
Net operating income
|
400
|
|
Interest expense
|
30
|
|
Net income before taxes
|
370
|
|
Income taxes (30%)
|
111
|
|
Net income
|
$ 259
|
Dividends during Year 2 totaled $49 thousand, of which $5 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $220.
Required:
Compute the following for Year 2:
a. Earnings per share of common stock.
b. Price-earnings ratio.
c. Dividend yield ratio.
d. Return on total assets.
e. Return on common stockholders'equity.
f. Book value per share.