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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 $ 185 $ 260 Accounts receivable, net 290 310 Inventory 260 230 Prepaid expenses 20 20 Total current assets 755 820 Plant and equipment, net 970 1,020 Total assets $ 1,725 $ 1,840 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 230 $ 260 Accrued liabilities 50 50 Notes payable, short term 40 40 Total current liabilities 320 350 Bonds payable 220 330 Total liabilities 540 680 Stockholders’ equity: Common stock, $2 par value 200 200 Additional paid-in capital 330 330 Retained earnings 655 630 Total stockholders’ equity 1,185 1,160 Total liabilities & stockholders’ equity $ 1,725 $ 1,840 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) $ 1,330 Cost of goods sold 830 Gross margin 500 Selling and administrative expense 405 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 $27 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: 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. 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.)

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Collen Von
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29 Sep 2019

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Lundberg Corporation's most recent balance sheet and incomestatement appear below:

Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars)
Year 2 Year 1
Asset:
Current assets:
Cash $ 160 $ 170
Accounts receivable 270 280
Inventory 170 160
Prepaid expenses 25 25
Total current assets 625 635
Plant and equipment, net 954 934
Total assets $ 1,579 $ 1,569
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable $ 220 $ 210
Accrued liabilities 110 110
Notes payable, short term 160 170
Total current liabilities 490 490
Bonds payable 250 300
Total liabilities 740 790
Stockholders' equity:
Preferred stock, $100 par value, 10% 260 260
Common stock, $1 par value 100 100
Additional paid-in capital--common stock 110 110
Retained earnings 369 295
Total stockholders' equity 839 765
Total liabilities and stockholders' equity $ 1,579 $ 1,555


Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account) $ 1,480
Costof goods sold 868
Gross margin 612
Selling and administrative expenses 334
Netoperating income 278
Interest expense 49
Netincome before taxes 229
Income taxes (30%) 69
Netincome $ 160

Dividends on common stock during Year 2 totaled $60 thousand.The market price of common stock at the end of Year 2 was $9.32 pershare.

o.

Compute the average sale period for Year 2. (Use 365days in a year. Do not round intermediate calculations. Round youranswer to 1 decimal place.)


Average sale period days


p.

Compute the times interest earned for Year 2. (Roundyour answer to 2 decimal places.)


Times interest earned


q.

Compute the debt-to-equity ratio for Year 2. (Round youranswer to 2 decimal places.)


Debt-to-equity ratio

Lundberg Corporation's most recent balance sheet and incomestatement appear below:

Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars)
Year 2 Year 1
Asset:
Current assets:
Cash $ 160 $ 170
Accounts receivable 270 280
Inventory 170 160
Prepaid expenses 25 25
Total current assets 625 635
Plant and equipment, net 954 934
Total assets $ 1,579 $ 1,569
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable $ 220 $ 210
Accrued liabilities 110 110
Notes payable, short term 160 170
Total current liabilities 490 490
Bonds payable 250 300
Total liabilities 740 790
Stockholders' equity:
Preferred stock, $100 par value, 10% 260 260
Common stock, $1 par value 100 100
Additional paid-in capital--common stock 110 110
Retained earnings 369 295
Total stockholders' equity 839 765
Total liabilities and stockholders' equity $ 1,579 $ 1,555


Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account) $ 1,480
Costof goods sold 868
Gross margin 612
Selling and administrative expenses 334
Netoperating income 278
Interest expense 49
Netincome before taxes 229
Income taxes (30%) 69
Netincome $ 160

Dividends on common stock during Year 2 totaled $60 thousand.The market price of common stock at the end of Year 2 was $9.32 pershare.

e.

Compute the dividend yield ratio for Year 2. (Round youranswer to 2 decimal places. Omit the "%" sign in yourresponse.)

f.

Compute the return on total assets for Year 2. (Do notround intermediate calculations. Round your answer to 2 decimalplaces. Omit the "%" sign in your response.)


Return on total assets %


g.

Compute the return on common stockholders' equity for Year 2.(Round your answer to 2 decimalplaces. Omit the "%" sign in yourresponse.)

h.

Compute the book value per share for Year 2. (Round youranswer to 2 decimal places. Omit the "$" sign in yourresponse.)


Bookvalue per share $

i.

Compute the working capital for Year 2. (Input youranswer in thousands of dollars. Omit the "$" sign in yourresponse.)

j.

Compute the current ratio for Year 2. (Round your answerto 2 decimal places.)


Current ratio

Working capital $


Return on common stockholders' equity %


Dividend yield ratio

%

Problem 23-3 Sunland Company has not yet prepared a formalstatement of cash flows for the 2017 fiscal year. Comparativebalance sheets as of December 31, 2016 and 2017, and a statement ofincome and retained earnings for the year ended December 31, 2017,are presented as follows.

SUNLAND COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FORTHE YEAR ENDED DECEMBER 31, 2017 ($000 OMITTED) Sales revenue$3,840 Expenses Cost of goods sold $1,210 Salaries and benefits 730 Heat,light, and power 80 Depreciation 70 Property taxes 20 Patentamortization 30 Miscellaneous expenses 10 Interest 30 2,180 Income before income taxes1,660 Income taxes 830 Net income 830 Retained earnings—Jan. 1,2017 280 1,110 Stock dividend declared and issued 590 Retainedearnings—Dec. 31, 2017 $520

SUNLAND COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31($000 OMITTED) Assets 2017 2016 Current assets Cash $235 $140 U.S. Treasurynotes (available-for-sale) 10 50 Accountsreceivable 790 500 Inventory 740 540 Total current assets 1,775 1,230Long-term assets Land 150 70 Buildings and equipment 930 590 Accumulated depreciation—buildings and equipment(170 ) (100 ) Patents (less amortization) 90 120 Total long-term assets 1,000 680 Total assets $2,775 $1,910Liabilities and Stockholders’ Equity Current liabilities Accounts payable $391 $370 Income taxes payable 44 30 Notes payable 300 300 Total current liabilities 735 700Long-term notes payable—due 2019 220 220 Totalliabilities 955 920 Stockholders’ equity Commonstock 1,300 710 Retained earnings 520 280 Total stockholders’ equity 1,820 990 Total liabilities and stockholders’equity $2,775 $1,910

Prepare a statement of cash flows using the direct method.Changes in accounts receivable and accounts payable relate to salesand cost of goods sold. (Show amounts in the investing andfinancing sections that decrease cash flow with either a - signe.g. -15,000 or in parenthesis e.g. (15,000).) SUNLAND COMPANYStatement of Cash Flows ($000 Omitted) $ $ $

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