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Hyrkas Corporation\'s most recent balance sheet and income statement appear belo

ID: 2579654 • Letter: H

Question

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 Accounts receivable, net Inventory Prepaid expenses $ 185 $ 260 310 230 20 820 1,020 $1,725$1,840 290 260 20 755 970 Total current assets Plant and equipment, net Total assets Liabilities and Stockholders' Equity Current liabilities: $ 230260 50 40 350 330 680 Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total liabilities Stockholders' equity: 50 40 320 220 540 Common stock, $2 par value Additional paid-in capital Retained earnings 200 330 655 1,185 $1,725 200 330 630 1,160 $1,840 Total stockholders' equity Total liabilities & stockholders' equity

Explanation / Answer

a) Gross margin percentage = Gross margin *100/sales

= 500*100/1330

Gross margin percentage = 37.6%

b) EPS = Net income/share outstanding

= 52/100

EPS = 0.52 per share

c) Price earning ratio = MPS/EPS

= 16.30/.52

Price earning ratio = 31.4

d) Dividend payout ratio = DPS*100/EPS

= 0.27*100/.52

Dividend payout ratio = 51.9%

e) Dividend yield ratio = DPS *100/MPS

= 0.27*100/16.30

Dividend yield ratio = 1.7%