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 $ 340 390 310 Current assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Plant and equipment, net Total assets $ 225 370 340 20 955 1,210 $2,165 1.060 1,340 $2,400 $ 310 50 $ 340 50 40 400 300 Liabilities and stockholders' Equity Current liabilities Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total liabilities Stockholders' equity: Common stock, $2 par value Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities & stockholders' equity 430 510 940 700 200 200 330 330 2.465 $ 2.165 $2.400

Answer 1

Gross Margin %= Sales-Cost of Goods sold Sales 1570-1000 1570 36.3 % Earning per share= Net Income No: of Common Stock(200/2) 45 100 = 0.45 Price Earning Ratio= Market Price Per Share Earning Price per share 15 0.45 = 33.3

Dividend Payout Ratio= Dividend per share(Notel) Earning Price per share 0.4 0.45 88.9 % Note1 Dividend per shares Dividend No: of Common Stock(200/2) 40 100 = 0.40 Dividend Yield Ratio= Dividend per share(Notel) Market Price per share 0.4 15 2.67 %

Return on total Assets= _ Earning before interest and tax Average Assets(Note2) Earning berkeressetest 3365.00 = 2.53 % (Note2) Average Assets Opening Total Asset +Closing Total Assets 2165+2400 = 3365.00 Return Equity Net Income Shareholders Equity 45 1465.00 0.03

Book Value per Share= Total Assets-Total Liabilities No:of Common stock(200/2) 2165-700 100.00 = 14.65 Working Capital= Current Assets- Current Liabilities = 955-400 = 555 Current Ratios Current Assets Current Liabilities 955 400 = 2.39

Acid Test Ratio= Cash+ Accounts receivables Current Liabilities 225+370 400 = 1.49 Accounts Receivable Turnover= Net Sales Average of Accounts Receivable(Note) 1570 380 = 4.13 4.13 (Note3) Average Assets= Opening A/c Receivable +Closing A/c Receivable 370+390 380.00

m Accounts Collection Period= 365 Accounts Receivable Turnover= 365 4.13 88.3 days Inventory Turnover= Cost of goods sold Average of Inventories(note4) 1000 325.00 = 3.08 (Note 4) Average Assets Opening Inventory +Closing Inventory 340+310 325.00

Average sales Period= 365 Inventory Turnover Ratio 365 3.08 = 118.6 days Time of Interest ratio Earning before interest and tax Interest Expense = 4.25 9 Debt Equity Ratio Debt Equity 700 1465 = 0.48