Financial statements for Pracht Company appear below: Dividends during Year 2 to

Question

Financial statements for Pracht Company appear below:

Dividends during Year 2 totaled $29 thousand, of which $15 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $150.

Required:

Compute the earnings per share (of common stock) for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Compute the price-earnings ratio for Year 2.(Round your answer to 1 decimal place.)

Compute the dividend payout ratio for Year 2.(Do not round intermediate calculations. Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Compute the dividend yield ratio for Year 2.(Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Compute the return on total assets for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Return on common stockholders' equity for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Compute the book value per share for Year 2.(Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Compute the working capital for Year 2.(Input your answer in thousands of dollars. Omit the "$" sign in your response.)

Compute the current ratio for Year 2. (Round your answer to 1 decimal place.)

Compute the acid-test ratio for Year 2. (Round your answer to 2 decimal places.)

Compute the accounts receivable turnover for Year 2. (Omit the "$" sign in your response.)

Compute the average collection period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)

Compute the inventory turnover for Year 2. (Omit the "$" sign in your response.)

Compute the average sale period for Year 2. (Use 365 days in a year. Round your answer to 1 decimal place.)

Compute the times interest earned for Year 2.(Round your answer to 2 decimal places.)

Compute the debt-to-equity ratio for Year 2. (Round your answer to 2 decimal places.)

Pracht Company
Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars) Year 2 Year 1 Current assets: Cash and marketable securities $ 120 $ 110 Accounts receivable, net 130 100 Inventory 150 140 Prepaid expenses 50 40 Total current assets 450 390 Noncurrent assets: Plant and equipment, net 1,820 1,740 Total assets $ 2,270 $ 2,130 Current liabilities: Accounts payable $ 90 $ 140 Accrued liabilities 110 80 Notes payable, short term 140 130 Total current liabilities 340 350 Noncurrent liabilities: Bonds payable 430 440 Total liabilities 770 790 Stockholders' equity: Preferred stock, $10 par value, 15% 100 100 Common stock, $10 par value 280 280 Additional paid-in capital--common stock 200 200 Retained earnings 920 760 Total stockholders' equity 1,500 1,340 Total liabilities and stockholders' equity $ 2,270 $ 2,130

Explanation / Answer

a)earnings per share= 189/28= 6.75 b) price-earnings ratio= 150/189= .79

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