Module 8 Chapter 16 Financial Statement Analysis Assignment

ABC Co paid a common stock dividend of $ .55 per share and its common stock sold for $2.75 at the end of this year. Below are data excerpted from its financial statements.

Answer the questions on the following page for ABC Co.:

\begin{tabular}{|c|c|c|} \hline & Ending Balance & Beginning Balance \\ \hline Cash & $35,000 & $30,000 \\ \hline Accounts receivable & $60,000 & $50,000 \\ \hline Inventory & $55,000 & $60,000 \\ \hline Current assets & $150,000 & $140,000 \\ \hline Total assets & $450,000 & $460,000 \\ \hline Current liabilities & $60,000 & $40,000 \\ \hline Total liabilities & $130,000 & $120,000 \\ \hline Common stock, \$1 par value & $120,000 & $120,000 \\ \hline Total stockholders' equity & $320,000 & $340,000 \\ \hline \multirow[t]{2}{*}{ Total liabilities and stockholders' equity } & $450,000 & $460,000 \\ \hline & This Year & \\ \hline Sales (all on account) & $700,000 & \\ \hline Cost of goods sold & $400,000 & \\ \hline Gross margin & $300,000 & \\ \hline Net operating income & $140,000 & \\ \hline Interest expense & $8,000 & \\ \hline Net income & $92,400 & \\ \hline \end{tabular} Required: 1. What is the earnings per share? 2. What is the price-earnings ratio? 3. What is the dividend payout ratio and the dividend yield ratio? 4. What is the return on total assets (assuming a 30% tax rate)? 5 . What is the return on equity? 6. What is the book value per share at the end of this year? 7. What is the amount of working capital and the current ratio at the end of this year? 8. What is the acid-test ratio at the end of this year? 9. What is the accounts receivable turnover and the average collection period? 10. What is the inventory turnover and the average sale period? 11. What is the company's operating cycle? 12. What is the total asset turnover? 13. What is the times interest earned ratio? 14. What is the debt-to-equity ratio at the end of this year? 15. What is the equity multiplier