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Lundberg 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 2 Year 1 Asset: Current assets: Cash $ 130 $ 140 Accounts receivable 240 250 Inventory 140 130 Prepaid expenses 20 20 Total current assets 530 540 Plant and equipment, net 917 897 Total assets $ 1,447 $ 1,437 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 190 $ 180 Accrued liabilities 80 80 Notes payable, short term 130 140 Total current liabilities 400 400 Bonds payable 220 270 Total liabilities 620 670 Stockholders' equity: Preferred stock, $100 par value, 10% 230 230 Common stock, $1 par value 100 100 Additional paid-in capital--common stock 110 110 Retained earnings 387 320 Total stockholders' equity 827 760 Total liabilities and stockholders' equity $ 1,447 $ 1,430 Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) Sales (all on account) $ 1,450 Cost of goods sold 871 Gross margin 579 Selling and administrative expenses 327 Net operating income 252 Interest expense 52 Net income before taxes 200 Income taxes (30%) 60 Net income $ 140 Dividends on common stock during Year 2 totaled $50 thousand. The market price of common stock at the end of Year 2 was $9.29 per share. Required: a. Compute the gross margin percentage for Year 2. (Round your answer to 1 decimal place. Omit the "%" sign in your response.) Gross margin percentage % b. Compute the earnings per share (of common stock) for Year 2.(Round your answer to 2 decimal places. Omit the "$" sign in your response.) Earnings per share $ c. Compute the price-earnings ratio for Year 2. (Do not round intermediate calculations. Round your answer to 1 decimal place.) Price-earnings ratio d. 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.) Dividend payout ratio % e. Compute the dividend yield ratio for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Dividend yield ratio % f. Compute the return on total assets for Year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places. 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 decimal places. Omit the "%" sign in your response.) Return on common stockholders' equity % h. Compute the book value per share for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Book value per share $ i. Compute the working capital for Year 2. (Input your answer in thousands of dollars. Omit the "$" sign in your response.) Working capital $ j. Compute the current ratio for Year 2. (Round your answer to 2 decimal places.) Current ratio k. Compute the acid-test ratio for Year 2.(Round your answer to 1 decimal place.) Acid-test ratio l. Compute the accounts receivable turnover for Year 2. (Round your answer to 2 decimal places.) Accounts receivable turnover 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.) Average collection period days n. Compute the inventory turnover for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) Inventory turnover $ o. Compute the average sale period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.) Average sale period days p. Compute the times interest earned for Year 2. (Round your answer to 2 decimal places.) Times interest earned q. Compute the debt-to-equity ratio for Year 2. (Round your answer to 2 decimal places.) Debt-to-equity ratio
During the year FC estimated doubtful accounts expense at 1% of credit sales. At year end, FC ages its accounts receivable and adjusts the balances in Allowance for Doubtful Accounts to correspond to the aging schedule. Prepare an aging schedule. Pre..
vitko corporation makes automotive engines. for most current month budgeted production was 6000 engines. the standard
Deibel Corporation is considering a project that would require an investment of $74,000. No other cash outflows would be involved. The present value of the cash inflows would be $101,380. The profitability index of the project is closest to:
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LB Enterprises uses a job-order costing system to determine its ending inventory and cost of goods sold. LB's accountant estimated the manufacturing overhead for 1999 to be $595,200. How much material was purchased in March? Assume the company alloca..
When can a CPA disclose confidential information without the client's consent? what causes an auditor's report to be adverse? Should the compensation plans for managers be different under a centralized versus a decentralized company?
The Blue Moon is considering a 4-year project that requires an investment of $2.8 million for new equipment. This equipment will be depreciated straight-line to zero over the life of the project and will be worthless thereafter. The project is expect..
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Jeans Co. manufactures a product requiring two processes, cutting and sewing. During August, partially completed units with a cost of 287,200 are transferred from cutting to sewing. Overhead is applied to the sewing department at 100% of direct labor..
Among the short-term obligations of Daisy Company as of December 31, the balance sheet date, are notes payable totaling $250,000 with the Madison National Bank. These are 90-day notes, renewable for another 90-day period.
capital structure decisions1.nbspthe cost of capital for a project depends primarily on thea. firms overall source of
You should assume that the company that is a reporting entity and that the date the annual report (including the financial report) is authorised for issue is the 1st September 2014.
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