Lundberg Corporation\'s most recent balance sheet and income statement appear be

Question

Lundberg Corporation's most recent balance sheet and income statement appear below: Lundberg Corporation Statement of Financial Position December 31, 2012 and 2011 (in thousands of dollars) 2012 2011 Assets: Current assets: Cash $ 100 $ 110 Accounts receivable 210 220 Inventory 110 120 Prepaid expenses 10 10 Total current assets 430 460 Plant and equipment, net 900 880 Total Assets: $ 1,330 $ 1,340 Liabilities and Stockholders' Equity: Current liabilities: Accounts payable $ 160 $ 170 Accrued liabilities 50 50 Notes payable, short term 100 90 Total current liabilities 310 310 Bonds payable 190 240 Total Liabilities: 500 550 Stockholders' Equity: Preferred stock, $100 par value, 10% 200 200 Common stock, $1 par value 100 100 Additional paid-in capital--common stock 110 110 Retained earnings 420 380 Total Stockholders' Equity: 830 790 Total Liabilities and Stockholders' Equity: $ 1,330 $ 1,340 ? Lundberg Corporation Income Statement for the year ended December 31, 2012 (in thousands of dollars) Sales (all on account) $ 1,330 Cost of goods sold 850 Gross margin 480 Selling and administrative expense 292 Net operating income 188 Interest expense 31 Net income before taxes 157 Income taxes (30%) 47 Net income $ 110 Other Facts:

Explanation / Answer

gross margin=1330-850/1330 *100=36.09%

eps= 110-20/210=0.42

p.e=mps/eps=9.36/0.42=22.28

d.p =dividend/N.I =50/110 =04545

div yield ratio= dps/mps=0.2381/9.36 =0.0254

rota=ebit/net sales =188/1330*100 =14.14%

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