Please answer all Thank you so much Assignments SP18 INTEX a

Please answer all! Thank you so much!!

Assignments: SP18: INTEX) a Connect secure l https://newconnect.mheducation.com/flow.connect.htrm1 Chapter 15 Quiz Help Save & Exit Submit Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) 4 Year 2 Year 1 Assets Current assets: Cash Accounts receivable, net Inventory Prepaid cxpenses $ 225 370 340 20 955 $ 340 390 310 20 1,060 1,340 $2,400 Total current assets Plant and equipment, net Total assets $2,165 Liabilities and Stockholders\' Equity Current liabilities: 310 50 48 480 380 780 340 50 48 430 510 948 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 200 330 935 1,465 $2,165 200 330 930 1,460 $2,400 Total stockholders equity Total 1iabilities & stockholders\' equity Income Statement PreY 4 of 10 Next > Hill 2-38 PM O Type here to search ^ 4x 1/22/2018 E

Solution

Solution:

(a) Gross margin percentage;

= Gross margin*100/Total sales revenue

= 570*100/1570 = 36.3%

(b) Earnings per share = Net Income/outstanding shares of common stock

   = 45/100 = $0.45 per share

(c) Price-earnings ratio = market value per share/earnings per share

   = 15/0.45 = 33.3

(d) Dividend payout ratio= Dividend/Net Income

   = 40/45 = 0.888 or 88.8%

(e) Dividend Yield Ratio = Dividend per share/market value per share

=(40/100)/15 = 0.4/15 = 0.0266 or 2.66%

(f) Return on total assets = Net Income/Average Total assets

   = 45/[(2400+2165)/2]

   = 45/2283 = 0.0197 or 1.97%

(g) Return on Equity = Net Income/ Stockholder\'s equity

   = 45/1465 = 0.0307 or 3.07%

(h) Book value per share = Total stockholder\'s equity/ Number of common stock

   = 1465/100 = $14.65 per share

(i) Working Capital = Current assets - Current liabilities

   = 955-400 = $555

(j) Current ratio = Current assets/Current liabilities

   = 955/400 = 2.39

(k) Acid-test(Quick) ratio = (current assets-Inventory-prepaid expense)/current liabilities

   =(955-340-20)/400 = 595/400 = 1.49

(l) Accounts Receivable Turnover = Net credit sales/Average Accounts Receivable

= 1570/[(390+370)/2] = 1570/380 = 4.13

(m) Average Collection period = 365/Receivables turnover = 365/4.13 = 88.3

(n) Inventory Turnover = Cost of goods sold/Average inventory = 1000/[(310+340)/2] = 1000/325 = 3.07

(o) Average sales period = 365/Accounts Payable

= 365/1570 = 0.2

(P) Times interest earned ratio = Net operating income/ Interest Expense = 85/20 = 4.25

(q) Debt to Equity ratio = Total liabilities/stockholders equity = 700/1465 = 0.48