Symons Corporation has provided the following financial data: Balance Sheet December 31, Year 2 and Year 1
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Symons Corporation has provided the following financial data:
Balance Sheet | ||||||
December 31, Year 2 and Year 1 | ||||||
Assets | Year 2 | Year 1 | ||||
Current assets: | ||||||
Cash | $ | 225,000 | $ | 160,000 | ||
Accounts receivable, net | 191,000 | 180,000 | ||||
Inventory | 96,000 | 110,000 | ||||
Prepaid expenses | 91,000 | 80,000 | ||||
Total current assets | 603,000 | 530,000 | ||||
Plant and equipment, net | 810,000 | 840,000 | ||||
Total assets | $ | 1,413,000 | $ | 1,370,000 | ||
Liabilities and Stockholders' Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 226,000 | $ | 190,000 | ||
Accrued liabilities | 66,000 | 70,000 | ||||
Notes payable, short term | 54,000 | 50,000 | ||||
Total current liabilities | 346,000 | 310,000 | ||||
Bonds payable | 170,000 | 170,000 | ||||
Total liabilities | 516,000 | 480,000 | ||||
Stockholders’ equity: | ||||||
Common stock, $5 par value | 250,000 | 250,000 | ||||
Additional paid-in capital | 70,000 | 70,000 | ||||
Retained earnings | 577,000 | 570,000 | ||||
Total stockholders’ equity | 897,000 | 890,000 | ||||
Total liabilities & stockholders’ equity | $ | 1,413,000 | $ | 1,370,000 | ||
Income Statement | |||
For the Year Ended December 31, Year 2 | |||
Sales (all on account) | $ | 1,260,000 | |
Cost of goods sold | 760,000 | ||
Gross margin | 500,000 | ||
Operating expenses | 473,429 | ||
Net operating income | 26,571 | ||
Interest expense | 13,000 | ||
Net income before taxes | 13,571 | ||
Income taxes (30%) | 4,071 | ||
Net income | $ | 9,500 | |
Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share.
The company’s price-earnings ratio for Year 2 is closest to:
The company’s dividend yield ratio for Year 2 is closest to:
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1111822361
1st edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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