Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $ 190 $ 270 Accounts receivable, net 300 320 Inventory 270 240 Prepaid expenses 20 20 Total current assets 780 850 Plant and equipment, net 1,000 1,060 Total assets $ 1,780 $ 1,910 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 240 $ 270 Accrued liabilities 50 50 Notes payable, short term 40 40 Total current liabilities 330 360 Bonds payable 230 360 Total liabilities 560 720 Stockholders’ equity: Common stock, $2 par value 200 200 Additional paid-in capital 330 330 Retained earnings 690 660 Total stockholders’ equity 1,220 1,190 Total liabilities & stockholders’ equity $ 1,780 $ 1,910 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) $ 1,340 Cost of goods sold 840 Gross margin 500 Selling and administrative expense 415 Net operating income 85 Interest expense 20 Net income before taxes 65 Income taxes (30%) 20 Net income $ 45 Dividends on common stock during Year 2 totaled $15 thousand. The market price of common stock at the end of Year 2 was $16.30 per share. Required: Compute the following for Year 2: 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. Current ratio. (Round your answer to 2 decimal places.) k. Acid-test (quick) ratio. (Round your answer to 2 decimal places.) l. Accounts receivable turnover. (Round your answer to 2 decimal

Hyrkas Corporation's most recent balance sheet and income statement appear below: Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets Current assets: Cash $ 190 $ 270 Accounts receivable, net 300 320 Inventory 270 240 Prepaid expenses 20 20 Total current assets 780 850 Plant and equipment, net 1,000 1,060 Total assets $ 1,780 $ 1,910 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 240 $ 270 Accrued liabilities 50 50 Notes payable, short term 40 40 Total current liabilities 330 360 Bonds payable 230 360 Total liabilities 560 720 Stockholders’ equity: Common stock, $2 par value 200 200 Additional paid-in capital 330 330 Retained earnings 690 660 Total stockholders’ equity 1,220 1,190 Total liabilities & stockholders’ equity $ 1,780 $ 1,910 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) $ 1,340 Cost of goods sold 840 Gross margin 500 Selling and administrative expense 415 Net operating income 85 Interest expense 20 Net income before taxes 65 Income taxes (30%) 20 Net income $ 45 Dividends on common stock during Year 2 totaled $15 thousand. The market price of common stock at the end of Year 2 was $16.30 per share. Required: Compute the following for Year 2: 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. Current ratio. (Round your answer to 2 decimal places.) k. Acid-test (quick) ratio. (Round your answer to 2 decimal places.) l. Accounts receivable turnover. (Round your answer to 2 decimal

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 6CP: The average liabilities, average stockholders' equity, and average total assets are as follows: 1....

See similar textbooks

Related questions

Question

Hyrkas Corporation's most recent balance sheet and income statement appear below:

	Year 2	Year 1
Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
Assets
Current assets:
Cash	$ 190	$ 270
Accounts receivable, net	300	320
Inventory	270	240
Prepaid expenses	20	20
Total current assets	780	850
Plant and equipment, net	1,000	1,060
Total assets	$ 1,780	$ 1,910
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$ 240	$ 270
Accrued liabilities	50	50
Notes payable, short term	40	40
Total current liabilities	330	360
Bonds payable	230	360
Total liabilities	560	720
Stockholders’ equity:
Common stock, $2 par value	200	200
Additional paid-in capital	330	330
Retained earnings	690	660
Total stockholders’ equity	1,220	1,190
Total liabilities & stockholders’ equity	$ 1,780	$ 1,910

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$ 1,340
Cost of goods sold	840
Gross margin	500
Selling and administrative expense	415
Net operating income	85
Interest expense	20
Net income before taxes	65
Income taxes (30%)	20
Net income	$ 45

Dividends on common stock during Year 2 totaled $15 thousand. The market price of common stock at the end of Year 2 was $16.30 per share.

Required:

Compute the following for Year 2:

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. Current ratio. (Round your answer to 2 decimal places.)

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.)

a. Gross margin percentage
b. Earnings per share
c. Price-earnings ratio
d. Dividend payout ratio
e. Dividend yield ratio
f. Return on total assets
g. Return on equity
h. Book value per share
i. Working capital
j. Current ratio
k. Acid-test ratio
1. Accounts receivable turnover
m. Average collection period
n. Inventory turnover
o. Average sale period
p. Times interest earned ratio
q. Debt-to-equity ratio
37.3 %
0.45
36.2
%
%
%
%
days
days

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.