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13-661
284.
Degollado Corporation's most recent income statement appears below:
Sales (all on account)
$140,000
Cost of goods sold
60,000
Gross margin
80,000
Selling and administrative expense
30,000
Net operating income
50,000
Interest expense
10,000
Net income before taxes
40,000
Income taxes (30%)
12,000
Net income
$28,000
The beginning balance of total assets was $200,000 and the ending balance was
$220,000.
Required:
Compute the return on total assets. Show your work!
13-662
285.
Marovich Corporation has provided the following financial data:
Year 2
Year 1
Total assets
$1,332,000
$1,300,000
Common
stock, $4 par
value
$200,000
$200,000
Total
stockholders'
equity
$1,042,000
$1,010,000
Income Statement
For the Year Ended December 31, Year 2
Sales (all on account)
$1,230,000
Cost of goods sold
810,000
Gross margin
420,000
Operating expenses
355,615
Net operating income
64,385
Interest expense
9,000
Net income before taxes
55,385
Income taxes (35%)
19,385
Net income
$36,000
Dividends on common stock during Year 2 totaled $4,000. The market price of common
stock at the end of Year 2 was $6.41 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?
e. What is the company's earnings per share for Year 2?
f. What is the company's price-earnings ratio for Year 2?
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g. What is the company's dividend payout ratio for Year 2?
h. What is the company's dividend yield ratio for Year 2?
i. What is the company's book value per share at the end of Year 2?
13-664
13-665
286.
Straton Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets
Year 2
Year 1
Current assets:
Cash
$208,000
$200,000
Accounts receivable
247,000
290,000
Inventory
165,000
180,000
Prepaid expenses
56,000
50,000
Total current assets
676,000
720,000
Plant and equipment, net
1,000,000
920,000
Total assets
$1,676,000
$1,640,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$115,000
$120,000
Accrued liabilities
107,000
90,000
Notes payable, short term
68,000
70,000
Total current liabilities
290,000
280,000
Bonds payable
290,000
290,000
Total liabilities
580,000
570,000
Stockholders' equity:
Common stock, $2 par value
140,000
140,000
Additional paid-in capital--common stock
90,000
90,000
Retained earnings
866,000
840,000
Total stockholders' equity
1,096,000
1,070,000
Total liabilities & stockholders' equity
$1,676,000
$1,640,000
Income Statement
For the Year Ended December 31, Year 2
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Sales (all on account)
$1,320,000
Cost of goods sold
860,000
Gross margin
460,000
Operating expenses
394,769
Net operating income
65,231
Interest expense
22,000
Net income before taxes
43,231
Income taxes (35%)
15,131
Net income
$28,100
Dividends on common stock during Year 2 totaled $2,100. The market price of common
stock at the end of Year 2 was $5.56 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?
e. What is the company's earnings per share for Year 2?
f. What is the company's price-earnings ratio for Year 2?
g. What is the company's dividend payout ratio for Year 2?
h. What is the company's dividend yield ratio for Year 2?
i. What is the company's book value per share at the end of Year 2?
13-669
287.
Moselle Corporation has provided the following financial data:
Balance Sheet
December 31, Year 2 and Year 1
Assets
Year 2
Year 1
Current assets:
Cash
$252,000
$200,000
Accounts receivable
255,000
260,000
Inventory
133,000
120,000
Prepaid expenses
18,000
20,000
Total current assets
658,000
600,000
Plant and equipment, net
681,000
730,000
Total assets
$1,339,000
$1,330,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable
$177,000
$190,000
Accrued liabilities
25,000
30,000
Notes payable, short term
39,000
40,000
Total current liabilities
241,000
260,000
Bonds payable
200,000
200,000
Total liabilities
441,000
460,000
Stockholders' equity:
Common stock, $4 par value
240,000
240,000
Additional paid-in capital--common stock
80,000
80,000
Retained earnings
578,000
550,000
Total stockholders' equity
898,000
870,000
Total liabilities & stockholders' equity
$1,339,000
$1,330,000
Income Statement
13-670
For the Year Ended December 31,
Year 2
Sales (all on account)
$1,400,000
Cost of goods sold
900,000
Gross margin
500,000
Operating expenses
436,462
Net operating income
63,538
Interest expense
14,000
Net income before
taxes
49,538
Income taxes (35%)
17,338
Net income
$32,200
Dividends on common stock during Year 2 totaled $4,200. The market price of common
stock at the end of Year 2 was $9.72 per share.
Required:
a. What is the company's earnings per share for Year 2?
b. What is the company's price-earnings ratio for Year 2?
c. What is the company's dividend payout ratio for Year 2?
d. What is the company's dividend yield ratio for Year 2?
e. What is the company's book value per share at the end of Year 2?
13-671
13-672
288.
Mihok Corporation has provided the following financial data:
Year 2
Year 1
Stockholders' equity:
Common stock, $3 par value
$300,000
$300,000
Additional paid-in capital--common stock
100,000
100,000
Retained earnings
375,000
370,000
Total stockholders' equity
$775,000
$770,000
Income Statement
For the Year Ended December 31,
Year 2
Sales (all on account)
$1,380,000
Cost of goods sold
780,000
Gross margin
600,000
Operating expenses
567,714
Net operating income
32,286
Interest expense
18,000
Net income before
taxes
14,286
Income taxes (30%)
4,286
Net income
$10,000
Dividends on common stock during Year 2 totaled $5,000. The market price of common
stock at the end of Year 2 was $0.97 per share.
Required:
a. What is the company's earnings per share for Year 2?
b. What is the company's price-earnings ratio for Year 2?
c. What is the company's dividend payout ratio for Year 2?
d. What is the company's dividend yield ratio for Year 2?
e. What is the company's book value per share at the end of Year 2?
13-674
289.
Sehrt Corporation has provided the following financial data:
Year 2
Year 1
Common stock, $3 par value
$300,000
$300,000
Total stockholders' equity
$803,000
$770,000
The company's net income for Year 2 was $44,000. Dividends on common stock during
Year 2 totaled $11,000. The market price of common stock at the end of Year 2 was $6.29
per share.
Required:
a. What is the company's earnings per share for Year 2?
b. What is the company's price-earnings ratio for Year 2?
c. What is the company's dividend payout ratio for Year 2?
d. What is the company's dividend yield ratio for Year 2?
e. What is the company's book value per share at the end of Year 2?
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