Guedea Corporation\'s most recent balance sheet and income statement appear belo

Question

Guedea 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 Assets Current assets: Cash Accounts receivable Inventory Prepaid expenses $78 $ 188 138 188 58 158 208 48 Total current assets Plant and equipment, net 492 1,060 572 970 Total assets $1,552 $1,542 Liabilities and stockholders' E Current liabilities: quity $ 118 $ 138 90 316 Accounts payable Accrued liabilities Notes payable, short term 90 296 260 Total current liabilities 280 Bonds payable Total liabilities Stockholders' equity 556 596 Preferred stock, $100 par value, 13% Common stock, $2 par value Additional paid-in capital--common stock Retained earnings 200 400 250 146 200 400 250 96 Total stockholders' equity 996 946 Total liabilities and stockholders' equity $1,552 $1,542

Explanation / Answer

=725/1,490

=48.7%

=(121-200@13%) /200

=95/200

=.48 per share

(looks like you forget to give information about the market price of share )

                                                =.225/.475

                                                 =47.4%

= 121+(49*.7)/1547

=10.04%

=95/771

=12.32%

=796/200

=3.98

1. Gross profit margin = gross profit/ sales

=725/1,490

=48.7%

1. Earnings per share = net income – preferred dividend/ common shares

=(121-200@13%) /200

=95/200

=.48 per share

1. P/E ratio = market price / Earnings per share

(looks like you forget to give information about the market price of share )

1. Dividend payout ratio = dividend per share to common/ EPS

                                                =.225/.475

                                                 =47.4%

1. Dividend yield ratio = Cash dividend per share /market value per share

1. Return on total assets = net income + interest expense net of tax/ average total assets

= 121+(49*.7)/1547

=10.04%

1. Return on common stockholders equity = net income- preferred div/ average stockholder’s equity

=95/771

=12.32%

1. Book value= stockholder equity less preffred stock/ common stock

=796/200

=3.98

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