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	$	170		$	230
Accounts receivable, net		260			280
Inventory		230			200
Prepaid expenses		20			20
Total current assets		680			730
Plant and equipment, net		880			900
Total assets	$	1,560		$	1,630
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	200		$	230
Accrued liabilities		50			50
Notes payable, short term		40			40
Total current liabilities		290			320
Bonds payable		190			240
Total liabilities		480			560
Stockholders’ equity:
Common stock, $2 par value		200			200
Additional paid-in capital		330			330
Retained earnings		550			540
Total stockholders’ equity		1,080			1,070
Total liabilities & stockholders’ equity	$	1,560		$	1,630

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)	$	1,240
Cost of goods sold		770
Gross margin		470
Selling and administrative expense		375
Net operating income		95
Interest expense		20
Net income before taxes		75
Income taxes (30%)		23
Net income	$	52

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.)

Answer 1

g)
	Average Stockholders Equity = (beginning Stockholders Equity + ending Stockholders Equity)/2
	= ( $1080+1070)/2
	= $ 1075
	Return On Stockholders Equity = Net Income / Average Stockholders Equity
	= $52/1075
	=4.84 %
h)	Book Value Per Share = Sharaholders Equity / Total Shares Outstanding
		=$1080/100
		=$10.8 per share
i)
	Working Capital = Current Assets - Current Liabilities
		=$680-290
		=$390
j)	Current Ratio = Current Assets / Current Liabilities
	= $680/290
	=2.34 times
k)	Quick Assets= Cash + Account Receivables
		=$170+260
		=$430
	Quick Ratio = Quick Assets / Current Liabilities
	= $430/290
	=1.48 times
l)	Average Account Receivables = (beginning Account Receivables + ending Account Receivables)/2
	= ( $260+280)/2
	= $ 270
	Account Receivables Turnover Ratio = Sales / average Account Receivables
	= $1240/270
	=4.59 times
m)	Average Collection Period = 365/ Account Receivables turnover ratio
	=365 days/4.5925
	79.5	days
n)	Average Inventory = (beginning inventory + ending inventory)/2
	= ( $230+200)/2
	= $ 215
	Inventory Turnover Ratio = Cost of goods sold / average inventory
	= $770/215
	=3.58 times
o)	Days sales in inventory = 365/ inventory turnover ratio
	= 365 days /3.5813
	=101.9 days
p)	Times Interest Earned Ratio = EBIT/ Interest expenses
	= $95/20
	=4.75 times
q)	Debt To Equity Ratio = Total Debt / Total Equity
	= $480/1080
	=44.44%
	or 0.44 times
Let me know the wrong answer if any.