Lundberg Corporation's most recent balance sheet and incomestatement appear below: Statement of Financial Position December 31, Year 2 andYear 1 (in thousands of dollars) Year 2 Year 1 Asset: Current assets: Cash $ 160 $ 170 Accounts receivable 270 280 Inventory 170160 Prepaid expenses 25 25 Total currentassets 625 635 Plant and equipment, net 954 934 Total assets $ 1,579 $ 1,569 Liabilitiesand stockholders' equity: Current liabilities: Accounts payable $ 220 $ 210 Accruedliabilities 110 110 Notes payable, short term 160 170 Total current liabilities 490 490 Bondspayable 250 300 Total liabilities 740 790 Stockholders' equity: Preferred stock, $100par value, 10% 260 260 Common stock, $1 par value 100100 Additional paid-in capital--common stock 110 110 Retained earnings 369 295 Totalstockholders' equity 839 765 Total liabilities andstockholders' equity $ 1,579 $ 1,555 Income Statement For the YearEnded December 31, Year 2 (in thousands of dollars) Sales (all on account) $ 1,480 Cost ofgoods sold 868 Gross margin 612 Selling andadministrative expenses 334 Net operating income 278 Interest expense 49 Net income before taxes229 Income taxes (30%) 69 Net income $ 160 Dividends on commonstock during Year 2 totaled $60 thousand. The market price ofcommon stock at the end of Year 2 was $9.32 per share. Required: a. Compute the gross marginpercentage for Year 2. (Round your answer to 1 decimal place. Omitthe "%" sign in your response.) Grossmargin percentage % b. Compute the earnings per share(of common stock) for Year 2.(Round your answer to 2 decimalplaces. Omit the "$" sign in your response.) Earnings per share $ c. Compute theprice-earnings ratio for Year 2. (Do not round intermediatecalculations. Round your answer to 1 decimal place.) Price-earnings ratio d. Compute thedividend payout ratio for Year 2. (Do not round intermediatecalculations. Round your answer to 1 decimal place. Omit the "%"sign in your response.) Dividend payoutratio % e. Compute the dividend yield ratio for Year2. (Round your answer to 2 decimal places. Omit the "%" sign inyour response.) Dividend yield ratio % f. Compute the return on total assets for Year 2. (Donot round intermediate calculations. Round your answer to 2 decimalplaces. Omit the "%" sign in your response.) Return on total assets % g. Compute thereturn on common stockholders' equity for Year 2. (Round youranswer 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. (Roundyour answer to 2 decimal places. Omit the "$" sign in yourresponse.) Book value per share $ i. Compute the working capital for Year 2. (Input youranswer in thousands of dollars. Omit the "$" sign in yourresponse.) Working capital $ j. Compute the current ratio for Year 2. (Round your answer to 2decimal places.) Current ratio k. Compute the acid-test ratio for Year 2.(Round youranswer to 1 decimal place.) Acid-testratio l. Compute the accounts receivable turnover forYear 2. (Round your answer to 2 decimal places.) Accounts receivable turnover m. Computethe average collection period for Year 2. (Use 365 days in a year.Do not round intermediate calculations. Round your answer to onedecimal place.) Average collection perioddays n. Compute the inventory turnover for Year 2.(Round your answer to 2 decimal places. Omit the "$" sign in yourresponse.) Inventory turnover $ o. Compute the average saleperiod for Year 2. (Use 365 days in a year. Do not roundintermediate 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 to2 decimal places.) Debt-to-equityratio
Lundberg Corporation's most recent balance sheet and incomestatement appear below: Statement of Financial Position December 31, Year 2 andYear 1 (in thousands of dollars) Year 2 Year 1 Asset: Current assets: Cash $ 160 $ 170 Accounts receivable 270 280 Inventory 170160 Prepaid expenses 25 25 Total currentassets 625 635 Plant and equipment, net 954 934 Total assets $ 1,579 $ 1,569 Liabilitiesand stockholders' equity: Current liabilities: Accounts payable $ 220 $ 210 Accruedliabilities 110 110 Notes payable, short term 160 170 Total current liabilities 490 490 Bondspayable 250 300 Total liabilities 740 790 Stockholders' equity: Preferred stock, $100par value, 10% 260 260 Common stock, $1 par value 100100 Additional paid-in capital--common stock 110 110 Retained earnings 369 295 Totalstockholders' equity 839 765 Total liabilities andstockholders' equity $ 1,579 $ 1,555 Income Statement For the YearEnded December 31, Year 2 (in thousands of dollars) Sales (all on account) $ 1,480 Cost ofgoods sold 868 Gross margin 612 Selling andadministrative expenses 334 Net operating income 278 Interest expense 49 Net income before taxes229 Income taxes (30%) 69 Net income $ 160 Dividends on commonstock during Year 2 totaled $60 thousand. The market price ofcommon stock at the end of Year 2 was $9.32 per share. Required: a. Compute the gross marginpercentage for Year 2. (Round your answer to 1 decimal place. Omitthe "%" sign in your response.) Grossmargin percentage % b. Compute the earnings per share(of common stock) for Year 2.(Round your answer to 2 decimalplaces. Omit the "$" sign in your response.) Earnings per share $ c. Compute theprice-earnings ratio for Year 2. (Do not round intermediatecalculations. Round your answer to 1 decimal place.) Price-earnings ratio d. Compute thedividend payout ratio for Year 2. (Do not round intermediatecalculations. Round your answer to 1 decimal place. Omit the "%"sign in your response.) Dividend payoutratio % e. Compute the dividend yield ratio for Year2. (Round your answer to 2 decimal places. Omit the "%" sign inyour response.) Dividend yield ratio % f. Compute the return on total assets for Year 2. (Donot round intermediate calculations. Round your answer to 2 decimalplaces. Omit the "%" sign in your response.) Return on total assets % g. Compute thereturn on common stockholders' equity for Year 2. (Round youranswer 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. (Roundyour answer to 2 decimal places. Omit the "$" sign in yourresponse.) Book value per share $ i. Compute the working capital for Year 2. (Input youranswer in thousands of dollars. Omit the "$" sign in yourresponse.) Working capital $ j. Compute the current ratio for Year 2. (Round your answer to 2decimal places.) Current ratio k. Compute the acid-test ratio for Year 2.(Round youranswer to 1 decimal place.) Acid-testratio l. Compute the accounts receivable turnover forYear 2. (Round your answer to 2 decimal places.) Accounts receivable turnover m. Computethe average collection period for Year 2. (Use 365 days in a year.Do not round intermediate calculations. Round your answer to onedecimal place.) Average collection perioddays n. Compute the inventory turnover for Year 2.(Round your answer to 2 decimal places. Omit the "$" sign in yourresponse.) Inventory turnover $ o. Compute the average saleperiod for Year 2. (Use 365 days in a year. Do not roundintermediate 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 to2 decimal places.) Debt-to-equityratio
Related questions
Lundberg Corporation's most recent balance sheet and incomestatement 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 | $ | 160 | $ | 170 |
| Accounts receivable | 270 | 280 | ||
| Inventory | 170 | 160 | ||
| Prepaid expenses | 25 | 25 | ||
| Total current assets | 625 | 635 | ||
| Plant and equipment, net | 954 | 934 | ||
| Total assets | $ | 1,579 | $ | 1,569 |
| Liabilities and stockholders' equity: | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 220 | $ | 210 |
| Accrued liabilities | 110 | 110 | ||
| Notes payable, short term | 160 | 170 | ||
| Total current liabilities | 490 | 490 | ||
| Bonds payable | 250 | 300 | ||
| Total liabilities | 740 | 790 | ||
| Stockholders' equity: | ||||
| Preferred stock, $100 par value, 10% | 260 | 260 | ||
| Common stock, $1 par value | 100 | 100 | ||
| Additional paid-in capital--common stock | 110 | 110 | ||
| Retained earnings | 369 | 295 | ||
| Total stockholders' equity | 839 | 765 | ||
| Total liabilities and stockholders' equity | $ | 1,579 | $ | 1,555 |
| Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) | |||
| Sales (all on account) | $ | 1,480 | |
| Costof goods sold | 868 | ||
| Gross margin | 612 | ||
| Selling and administrative expenses | 334 | ||
| Netoperating income | 278 | ||
| Interest expense | 49 | ||
| Netincome before taxes | 229 | ||
| Income taxes (30%) | 69 | ||
| Netincome | $ | 160 | |
Dividends on common stock during Year 2 totaled $60 thousand.The market price of common stock at the end of Year 2 was $9.32 pershare. |
| o. | Compute the average sale period for Year 2. (Use 365days in a year. Do not round intermediate calculations. Round youranswer to 1 decimal place.) |
| Average sale period | days |
| p. | Compute the times interest earned for Year 2. (Roundyour answer to 2 decimal places.) |
| Times interest earned |
| q. | Compute the debt-to-equity ratio for Year 2. (Round youranswer to 2 decimal places.) |
| Debt-to-equity ratio |
Lundberg Corporation's most recent balance sheet and incomestatement 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 | $ | 160 | $ | 170 |
| Accounts receivable | 270 | 280 | ||
| Inventory | 170 | 160 | ||
| Prepaid expenses | 25 | 25 | ||
| Total current assets | 625 | 635 | ||
| Plant and equipment, net | 954 | 934 | ||
| Total assets | $ | 1,579 | $ | 1,569 |
| Liabilities and stockholders' equity: | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 220 | $ | 210 |
| Accrued liabilities | 110 | 110 | ||
| Notes payable, short term | 160 | 170 | ||
| Total current liabilities | 490 | 490 | ||
| Bonds payable | 250 | 300 | ||
| Total liabilities | 740 | 790 | ||
| Stockholders' equity: | ||||
| Preferred stock, $100 par value, 10% | 260 | 260 | ||
| Common stock, $1 par value | 100 | 100 | ||
| Additional paid-in capital--common stock | 110 | 110 | ||
| Retained earnings | 369 | 295 | ||
| Total stockholders' equity | 839 | 765 | ||
| Total liabilities and stockholders' equity | $ | 1,579 | $ | 1,555 |
| Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) | |||
| Sales (all on account) | $ | 1,480 | |
| Costof goods sold | 868 | ||
| Gross margin | 612 | ||
| Selling and administrative expenses | 334 | ||
| Netoperating income | 278 | ||
| Interest expense | 49 | ||
| Netincome before taxes | 229 | ||
| Income taxes (30%) | 69 | ||
| Netincome | $ | 160 | |
| Dividends on common stock during Year 2 totaled $60 thousand.The market price of common stock at the end of Year 2 was $9.32 pershare.
|
Lundberg Corporation's most recent balance sheet and incomestatement 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 | $ | 160 | $ | 170 |
| Accounts receivable | 270 | 280 | ||
| Inventory | 170 | 160 | ||
| Prepaid expenses | 25 | 25 | ||
| Total current assets | 625 | 635 | ||
| Plant and equipment, net | 954 | 934 | ||
| Total assets | $ | 1,579 | $ | 1,569 |
| Liabilities and stockholders' equity: | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 220 | $ | 210 |
| Accrued liabilities | 110 | 110 | ||
| Notes payable, short term | 160 | 170 | ||
| Total current liabilities | 490 | 490 | ||
| Bonds payable | 250 | 300 | ||
| Total liabilities | 740 | 790 | ||
| Stockholders' equity: | ||||
| Preferred stock, $100 par value, 10% | 260 | 260 | ||
| Common stock, $1 par value | 100 | 100 | ||
| Additional paid-in capital--common stock | 110 | 110 | ||
| Retained earnings | 369 | 295 | ||
| Total stockholders' equity | 839 | 765 | ||
| Total liabilities and stockholders' equity | $ | 1,579 | $ | 1,555 |
| Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) | |||
| Sales (all on account) | $ | 1,480 | |
| Costof goods sold | 868 | ||
| Gross margin | 612 | ||
| Selling and administrative expenses | 334 | ||
| Netoperating income | 278 | ||
| Interest expense | 49 | ||
| Netincome before taxes | 229 | ||
| Income taxes (30%) | 69 | ||
| Netincome | $ | 160 | |
Dividends on common stock during Year 2 totaled $60 thousand.The market price of common stock at the end of Year 2 was $9.32 pershare. |
| k. | Compute theacid-test ratio for Year 2.(Round your answer to 1 decimalplace.) |
| Acid-test ratio |
| l. | Compute theaccounts receivable turnover for Year 2. (Round your answerto 2 decimal places.) |
| Accounts receivable turnover |
| m. | Compute the average collection period for Year 2. (Use365 days in a year. Do not round intermediatecalculations. Round your answer to one decimalplace.) |
| Average collection period | days |
| n. | Compute the inventory turnover for Year 2. (Round youranswer to 2 decimal places. Omit the "$" sign in yourresponse.) |
| Inventory turnover | $ |
| o. | Compute the average sale period for Year 2. (Use 365days in a year. Do not round intermediate calculations. Round youranswer to 1 decimal place.) |
| Average sale period | days |
| p. | Compute the times interest earned for Year 2. (Roundyour answer to 2 decimal places.) |
| Times interest earned |
| q. | Compute the debt-to-equity ratio for Year 2. (Round youranswer to 2 decimal places.) |
| Debt-to-equity ratio |
