Lundberg Corporation\'s most recent balance sheet and income statement appear be
ID: 2480520 • Letter: L
Question
Lundberg Corporation's most recent balance sheet and income statement appear below:
Dividends on common stock during Year 2 totaled $40 thousand. The market price of common stock at the end of Year 2 was $9.27 per share.
Compute the gross margin percentage for Year 2.(Round your answer to 1 decimal place. Omit the "%" sign in your response.)
Gross Margin Percentage: %
Compute the earnings per share (of common stock) for Year 2.(Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Earnings per share: $
Compute the price-earnings ratio for Year 2. (Do not round intermediate calculations. Round your answer to 1 decimal place.)
Price-earning ratio:
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.)
Dividend payout ratio: %
Compute the dividend yield ratio for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Dividend yield ratio: %
Compute the return on total assets for Year 2. (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Return on assets %
Compute the return on common stockholders' equity for Year 2. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Return on common stockholders' equity %
Compute the book value per share for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Book value per share $
Compute the working capital for Year 2. (Input your answer in thousands of dollars. Omit the "$" sign in your response.)
working capital $
Compute the current ratio for Year 2. (Round your answer to 2 decimal places.)
current ratio
Acid-test ratio
Accounts receivable turnover
Compute the average collection period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to one decimal place.)
Average collection period
Compute the inventory turnover for Year 2. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Compute the average sale period for Year 2. (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 1 decimal place.)
Average sale period days
Compute the times interest earned for Year 2. (Round your answer to 2 decimal places.)
Times interest earned
Compute the debt-to-equity ratio for Year 2. (Round your answer to 2 decimal places.)
Lundberg Corporation's most recent balance sheet and income statement appear below:
Explanation / Answer
a. Gross Margin % = Gross Profits/Sales * 100
= 557/1430*100
= 38.95%
b. Earning per share for common stock = Profit after deducting prefference dividend/No. of shares of common stock
= (120-21)/100
=0.99
c. Price earning ratio = market price per share/ earning per share
= 9.27/0.99
= 9.4
d. Dividend payout ratio = Dividend paid/ Profits available to common stockholders*100
= 40/99*100
= 40.40
e. Dividend yield ratio = Dividend per share/Market price per share*100
= (99/100)/9.27 * 100
= 10.68
f. return on total assets = Net profit/ total assets *100
= 120/1349 * 100
= 8.89
g. Return on common shareholder's equity = Profits to common shareholders/Common shareholder's equity *100
= 99/100 * 100
=99%
h. book value per share = (Total assets - Outsider's liability - Prefrence shareholder's equity) / No. of commmon shares
= (1349-540-210)/100
= 5.99
i. Working capital = Current assets - Current Liabilites
= 460 - 340
= 120
Ask rest of the parts separately
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