Hyrkas Corporations most recent balance sheet and income sta

Hyrkas Corporation\'s most recent balance sheet and income statement appear below: 6 Balance Sheet December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Assets 02:51:23 Current assets: Cash Accounts receivable, net Inventory Prepaid expenses $ 210 340 310 20 880 1,120 $2,000 310 360 280 20 970 1,220 $2,190 Total current assets Plant and equipment, net Total assets Liabilities and Stockholders\' Equity Current liabilities: $ 280 310 50 40 400 440 840 Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Bonds payable Total liabilities Stockholders\' equity: 50 40 370 270 640 Common stock, $2 par value Additional paid-in capital Retained earnings 200 330 830 1,360 $2,000 200 330 820 1,350 $2,190 Total stockholders\' equity Total liabilities & stockholders\' equity

Solution

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

= 550*100/1490

Gross profit percentage = 36.9%

b) EPS = Net income/share outstanding

= 52/100

EPS = 0.52 per share

c) Price earning per share = MPS/EPS

= 11.20/0.52

Price earning per share = 21.5 Times

d) Dividend payout ratio = DPS*100/EPS

= 0.42*100/0.52

Dividend payout ratio = 80.8%