Lesmerises Corporation\'s most recent balance sheet and income statement appear
ID: 2486230 • Letter: L
Question
Lesmerises Corporation's most recent balance sheet and income statement appear below:
Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars)
200
Income Statement for the year ended December 31, Year 2 (in thousands of dollars)
Dividends in common stock during Year 2 totaled $40 thousand. Dividends preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $2.85 per share.
27. The gross margin percentage for Year 2 is closest to:
A. 53.4%
B. 671.4%
C. 34.8%
D. 14.9%
28. The earnings per share of common stock for Year 2 isclosest to:
A. $.069
B. $0.35
C. $0.30
D. $0.50
29. The price-earnings ratio for Year 2 is closes to:
A. 5.70
B. 8.14
C. 4.13
D. 9.50
30. The dividend payout ratio for Year 2 is closest to:
A. 66.7%
B. 33.3%
C. 83.3%
D. 57.1%
31. The dividend yield ratio for Year 2 is closest to:
A. 1.75%
B. 7.02%
C. 80.00%
D. 8.77%
32. The return on total assets for Year 2 is closest to:
A. 4.27%
B. 5.85%
C. 5.83%
D. 4.26%
33. The return on common stockholders' equity for Year 2 is closest to:
A. 5.94%
B.7.69%
C. 6.59%
D. 6.93%
34. The book value per share at the end of Year 2 is closest to:
A. $0.30
B. $4.60
C.$5.10
D. $8.20
Year 2 Year 1 Current assets: cash 240 190 accounts recievable 220 250 inventory 130 150 prepaid expenses 60 70 total current assets 650 660 plant and equipment, net 990 990 total assets 1,640 1,650 Current Liabilities: accounts payable 180 180 accrued liabilities 90 80 notes payable, short term 100 90 total current liabilities 370 350 bonds payable 250 300 total liabilities 620 650 stockholder's equity: preferred stock, $100 par value, 10% 100 100 common stock, $1 par value 200200
additioinal paid-in-capital--common stock 190 190 retained earnings 530 510 total stockholder's equity 1,020 1,000 total liabilities and stockholder's equity 1,640 1,650Explanation / Answer
27) Gross margin percentage = Gross profit / sales
=470/1350
=34.8%
Option c
28) EPS = (Net income – preferred dividend)/ commons outstanding shares
=(70-10)/200
=$.30 per share
Option c
29) PE ratio = Market price /EPS
=2.85/.30
=9.50option D
30)dividend payout ratio = dividend to common / net income
=40/70
=57.1%
Option d
31) Dividend yield ratio = cash dividend per share to common/market value
= .20/2.85
=7.02%
Option b
32)Return on total asset = net income / Average total asset
=70/1,645
=4.26%
Option D
33) Return on common stockholder’s Equity = net income / total average stockholder equity
= 70/1010
=6.93%
Option d
34) Book value = stockholders equity – preferred equity/ number of common o/s shares
= 920/200
=4.6
Option B
27) Gross margin percentage = Gross profit / sales
=470/1350
=34.8%
Option c
28) EPS = (Net income – preferred dividend)/ commons outstanding shares
=(70-10)/200
=$.30 per share
Option c
29) PE ratio = Market price /EPS
=2.85/.30
=9.50option D
30)dividend payout ratio = dividend to common / net income
=40/70
=57.1%
Option d
31) Dividend yield ratio = cash dividend per share to common/market value
= .20/2.85
=7.02%
Option b
32)Return on total asset = net income / Average total asset
=70/1,645
=4.26%
Option D
33) Return on common stockholder’s Equity = net income / total average stockholder equity
= 70/1010
=6.93%
Option d
34) Book value = stockholders equity – preferred equity/ number of common o/s shares
= 920/200
=4.6
Option B
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