Lundberg Corporation\'s most recent balance sheet and income statement appear be
ID: 2481357 • Letter: L
Question
Lundberg Corporation's most recent balance sheet and income statement appear below:
Dividends on common stock during Year 2 totaled $50 thousand. The market price of common stock at the end of Year 2 was $9.33 per share.
Compute the gross margin percentage for Year 2. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)
Compute the earnings per share (of common stock) for Year 2.(Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Compute the price-earnings ratio for Year 2. (Do not round intermediate calculations. Round your answer to 1 decimal place.)
Compute the dividend payout ratio for Year 2. (Do not round intermediate calculations. Round your answer to 1 decimal place. Omit the "%" sign in your response.)
Compute the dividend yield ratio for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Compute the return on total assets for Year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Compute the return on common stockholders' equity for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Compute the book value per share for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Compute the working capital for Year 2. (Input your answer in thousands of dollars. Omit the "$" sign in your response.)
Compute the current ratio for Year 2. (Round your answer to 2 decimal places.)
Compute the average collection period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to one decimal place.)
Compute the inventory turnover for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Compute the average sale period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)
Compute the times interest earned for Year 2. (Round your answer to 2 decimal places.)
Compute the debt-to-equity ratio for Year 2. (Round your answer to 2 decimal places.)
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Statement of Financial PositionDecember 31, Year 2 and Year 1
(in thousands of dollars) Year 2 Year 1 Asset: Current assets: Cash $ 170 $ 180 Accounts receivable 280 290 Inventory 180 170 Prepaid expenses 20 20 Total current assets 650 660 Plant and equipment, net 953 933 Total assets $ 1,603 $ 1,593 Liabilities and stockholders' equity: Current liabilities: Accounts payable $ 230 $ 220 Accrued liabilities 120 120 Notes payable, short term 170 180 Total current liabilities 520 520 Bonds payable 260 310 Total liabilities 780 830 Stockholders' equity: Preferred stock, $100 par value, 10% 270 270 Common stock, $1 par value 100 100 Additional paid-in capital--common stock 110 110 Retained earnings 343 280 Total stockholders' equity 823 760 Total liabilities and stockholders' equity $ 1,603 $ 1,590
Explanation / Answer
a Gross marging percentage Gross Margin /Sale Gross marging percentage (633/1500) 42.20% b Earning Per share Net Income/average Outstanding common share Net Income 140 No of Shares in Thousand 100 Earning Per share 1.4 C Price Earning ratio Earning Per share/market value per share (1.4/9.33) 15.0% D Dividend Payout ratio Dividend Per share/Earning per Share (0.5/1.4) 35.7% E Dividend Yeild Ratio Most recent full year dividend/Current share price 0.5/9.33 5.4% F Return On total Assets Net Income/ Total Assest 8.7% 8.7% J Current ratio Current Assets/Current Liabilties 650/520 1.25:1
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