Lundberg Corporation\'s most recent balance sheet and income statement appear be
ID: 2481287 • Letter: L
Question
Lundberg Corporation's most recent balance sheet and income statement appear below: Statement of Financial Position December 31, Year 2 and Year 1 (in thousands of dollars) Year 2 Year 1 Current assets: Accounts receivable Prepaid expenses s 190 200 300 310 200 190 Total current assets Plant and equipment, net 710 720 961 981 Total assets $1,691 $1,681 Liabilities and stockholders' equity Current liabilities: Accounts payable Accrued liabilities $ 250 240 140 190 200 140 Notes payable, short term Total current liabilities Bonds payable 580 580 280 330 Total liabilities 860 910 Stockholders' equity Preferred stock, $100 par value, 10% Common stock, $1 par value Additional paid-in capital--common stock Retained earnings 290 290 100 110 110 331 280 100 Total stockholders' equity 831 780 Total liabilities and stockholders' equity $1,691 $1,690Explanation / Answer
c) Price earning ratio = Market price per share/Earning per share = $9.45/$0.91 = 10.38
e) dividend yield ratio = dividend per share / current market price per share
= (EPS x dividend payout ratio) / current market price per share
= ($0.91 x 43.96%) / $9.45 = 4.23%
f) Return on total assets
= Net operating income / Average total assets
= $211000 / [($1691000+$1681000)/2] = 12.51%
g) Return on common stockholders’ equity
= (net income – preference dividend) / Average stockholders’ equity
= ($120000 – 10% x $290000) / [{($831000 - $290000) + ($780000 - $290000)} / 2]
= 17.65%
o) Average sale period
= (365 days x average inventory)/net sales
= [365 days x (200000+190000)/2] / 1420
= 50.12 days
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.