Financial statements for qabar company appear

Reference no: EM13484169 , Length: 30

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.

Reference no: EM13484169

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