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13-645
13-646
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,
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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
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?
13-650
13-651
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?
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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?
13-653
13-654
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
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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,
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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
Income taxes (35%)
14,862
Net income
$27,600
Dividends on common stock during Year 2 totaled $5,600. The market price of common
stock at the end of Year 2 was $5.60 per share.
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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