1. Business
  2. Accounting
  3. hyrkas corporations most recent balance sheet and income statement appear...

Question: hyrkas corporations most recent balance sheet and income statement appear...

Question details

Hyrkas Corporation's most recent balance sheet and income statement appear below:

Balance Sheet
December 31, Year 2 and Year 1
(in thousands of dollars)
Year 2 Year 1
Assets
Current assets:
Cash $ 190 $ 270
Accounts receivable, net 300 320
Inventory 270 240
Prepaid expenses 20 20
Total current assets 780 850
Plant and equipment, net 1,000 1,060
Total assets $ 1,780 $ 1,910
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 240 $ 270
Accrued liabilities 50 50
Notes payable, short term 40 40
Total current liabilities 330 360
Bonds payable 230 360
Total liabilities 560 720
Stockholders’ equity:
Common stock, $2 par value 200 200
Additional paid-in capital 330 330
Retained earnings 690 660
Total stockholders’ equity 1,220 1,190
Total liabilities & stockholders’ equity $ 1,780 $ 1,910
Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account) $ 1,340
Cost of goods sold 840
Gross margin 500
Selling and administrative expense 415
Net operating income 85
Interest expense 20
Net income before taxes 65
Income taxes (30%) 20
Net income $ 45

Dividends on common stock during Year 2 totaled $15 thousand. The market price of common stock at the end of Year 2 was $16.30 per share.

Required:

Compute the following for Year 2:

e. Dividend yield ratio. (Round your "Percentage" answer to 2 decimal places.)

f. Return on total assets. (Do not round intermediate calculations. Round your "Percentage" answer to 2 decimal places.)

g. Return on equity. (Round your "Percentage" answer to 2 decimal places.)

h. Book value per share. (Round your answer to 2 decimal places.)

i. Working capital. (Input your answer in thousands of dollars.)

j. Current ratio. (Round your answer to 2 decimal places.)

k. Acid-test (quick) ratio. (Round your answer to 2 decimal places.)

l. Accounts receivable turnover. (Round your answer to 2 decimal places.)

m. Average collection period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)

n. Inventory turnover. (Round your answer to 2 decimal places.)

o. Average sale period. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)

p. Times interest earned ratio. (Round your answer to 2 decimal places.)

q. Debt-to-equity ratio. (Round your answer to 2 decimal places.)

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution