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277. Tobia Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $201,000 $110,000
Accounts receivable 236,000 200,000
Inventory 158,000 190,000
Prepaid expenses 96,000 90,000
Total current assets 691,000 590,000
Plant and equipment, net 842,000 920,000
Total assets $1,533,000 $1,510,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $173,000 $150,000
Accrued liabilities 36,000 40,000
Notes payable, short term 88,000 90,000
Total current liabilities 297,000 280,000
Bonds payable 170,000 170,000
Total liabilities 467,000 450,000
Stockholders’ equity:
Common stock, $3 par value 210,000 210,000
Additional paid-in capital—common stock 60,000 60,000
Retained earnings 796,000 790,000
Total stockholders’ equity 1,066,000 1,060,000
Total liabilities & stockholders’ equity $1,533,000 $1,510,000
Income Statement
For the Year Ended December 31, Year 2
Sales (all on account) $1,410,000
Cost of goods sold 850,000
Gross margin 560,000
Operating expenses 525,077
Net operating income 34,923
Interest expense 16,000
Net income before taxes 18,923
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Income taxes (35%) 6,623
Net income $12,300
Dividends on common stock during Year 2 totaled $6,300. The market price of common stock at
the end of Year 2 was $1.78 per share.
Required:
a. What is the company’s times interest earned for Year 2?
b. What is the company’s debt–to-equity ratio at the end of Year 2?
c. What is the company’s equity multiplier at the end of Year 2?
d. What is the company’s earnings per share for Year 2?
e. What is the company’s price-earnings ratio for Year 2?
f. What is the company’s dividend payout ratio for Year 2?
g. What is the company’s dividend yield ratio for Year 2?
h. What is the company’s book value per share at the end of Year 2?
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278. Vogelsberg Corporation has provided the following financial data:
Year 2 Year 1
Total assets $1,286,000 $1,240,000
Total liabilities $356,000 $340,000
Stockholders’ equity:
Common stock, $3 par value $270,000 $270,000
Additional paid-in capital—common stock 90,000 90,000
Retained earnings 570,000 540,000
Total stockholders’ equity $930,000 $900,000
The company’s net operating income in Year 2 was $62,308; its interest expense was $12,000;
and its net income was $32,700. Dividends on common stock during Year 2 totaled $2,700. The
market price of common stock at the end of Year 2 was $6.37 per share.
Required:
a. What is the company’s times interest earned for Year 2?
b. What is the company’s debt–to-equity ratio at the end of Year 2?
c. What is the company’s equity multiplier at the end of Year 2?
d. What is the company’s earnings per share for Year 2?
e. What is the company’s price-earnings ratio for Year 2?
f. What is the company’s dividend payout ratio for Year 2?
g. What is the company’s dividend yield ratio for Year 2?
h. What is the company’s book value per share at the end of Year 2?
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279. Remley Corporation has provided the following financial data:
Year 2 Year 1
Total assets $1,441,000 $1,390,000
Total liabilities $539,000 $500,000
Stockholders’ equity:
Common stock, $3 par value $180,000 $180,000
Additional paid-in capital—common stock 90,000 90,000
Retained earnings 632,000 620,000
Total stockholders’ equity $902,000 $890,000
Income Statement
For the Year Ended December 31, Year 2
Sales (all on account) $1,360,000
Cost of goods sold 840,000
Gross margin 520,000
Operating expenses 480,923
Net operating income 39,077
Interest expense 16,000
Net income before taxes 23,077
Income taxes (35%) 8,077
Net income $15,000
Dividends on common stock during Year 2 totaled $3,000. The market price of common stock at
the end of Year 2 was $2.70 per share.
Required:
a. What is the company’s times interest earned for Year 2?
b. What is the company’s debt–to-equity ratio at the end of Year 2?
c. What is the company’s equity multiplier at the end of Year 2?
d. What is the company’s earnings per share for Year 2?
e. What is the company’s price-earnings ratio for Year 2?
f. What is the company’s dividend payout ratio for Year 2?
g. What is the company’s dividend yield ratio for Year 2?
h. What is the company’s book value per share at the end of Year 2?
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280. Pribyl Corporation has provided the following financial data:
Year 2 Year 1
Total assets $1,476,000 $1,450,000
Total stockholders’ equity $1,013,000 $1,000,000
Income Statement
For the Year Ended December 31, Year 2
Sales (all on account) $1,270,000
Cost of goods sold 720,000
Gross margin 550,000
Operating expenses 506,846
Net operating income 43,154
Interest expense 17,000
Net income before taxes 26,154
Income taxes (35%) 9,154
Net income $17,000
Required:
a. What is the company’s net profit margin percentage for Year 2?
b. What is the company’s gross margin percentage for Year 2?
c. What is the company’s return on total assets for Year 2?
d. What is the company’s return on equity for Year 2?
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281. Perrett Corporation has provided the following financial data:
Year 2 Year 1
Total assets $1,470,000 $1,450,000
Total stockholders’ equity $954,000 $920,000
Sales (all on account) $1,200,000
Gross margin $430,000
Interest expense $22,000
Income taxes (35%) $21,269
Net income $39,500
Required:
a. What is the company’s net profit margin percentage for Year 2?
b. What is the company’s gross margin percentage for Year 2?
c. What is the company’s return on total assets for Year 2?
d. What is the company’s return on equity for Year 2?
282. Jepson Corporation’s most recent income statement appears below:
Sales (all on account) $865,000
Cost of goods sold 358,000
Gross margin 507,000
Selling and administrative expense 213,000
Net operating income 294,000
Interest expense 48,000
Net income before taxes 246,000
Income taxes 70,000
Net income $176,000
Required:
Compute the gross margin percentage.
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283. Gehlhausen Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets Year 2 Year 1
Current assets:
Cash $110,000 $160,000
Accounts receivable 256,000 250,000
Inventory 205,000 200,000
Prepaid expenses 33,000 30,000
Total current assets 604,000 640,000
Plant and equipment, net 784,000 730,000
Total assets $1,388,000 $1,370,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $124,000 $140,000
Accrued liabilities 85,000 80,000
Notes payable, short term 57,000 50,000
Total current liabilities 266,000 270,000
Bonds payable 260,000 260,000
Total liabilities 526,000 530,000
Stockholders’ equity:
Common stock, $5 par value 400,000 400,000
Additional paid-in capital—common stock 100,000 100,000
Retained earnings 362,000 340,000
Total stockholders’ equity 862,000 840,000
Total liabilities & stockholders’ equity $1,388,000 $1,370,000
Income Statement
For the Year Ended December 31, Year 2
Sales (all on account) $1,310,000
Cost of goods sold 710,000
Gross margin 600,000
Operating expenses 538,538
Net operating income 61,462
Interest expense 19,000
Net income before taxes 42,462