QUESTION7 Partially correctMark 2.50 out of 3 lag question Ratios Compared with

ID: 2541152 • Letter: Q

Question

QUESTION7 Partially correctMark 2.50 out of 3 lag question Ratios Compared with Industry Averages Packard Plastics, Inc., manufactures various plastic and synthetic produ 2016 (Thousands of Dollars, Except Earnings per Share ucts. Financial statement data for the firm follow Cost of goods sold Net income Dividends Earnings per share $825,000 540,000 50,500 15,000 4.25 Packard Plastics, inc. Balance Sheets (Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015 Assets Cash Accounts receivable (net) Inventory $2,700 60,900 140.000 219.000203,600 194,000 $4,100 66,900 148,000 Total Current Assets Plant assets (net) 215,000

Explanation / Answer

Median ratio for manufacture of plastic and synthetic product

ratio for packard plastic

gross profit margin

gross profit/sales

285000/825000

32.70%

34.55%

gross profit

825000-540000

285000

sales

825000

Dividend payout ratio

dividend paid/net income

15000/50500

29.70%