please help!! due tomorrow

148 Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patients Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is requesting a $520.000 long-term loan from Gulfport State Bank, $110,000 of which will be used to bolster the Cash account and $410,000 of which will be used to modemize equipment. The company's financial statements for the two most recent years follow Sabin Electronics Comparative Balance Sheet This Year Last Te Assets Current assets Cash marketable securities Accounts receivable net Inventory Prepaid expenses Total current assets Plant and equipment, not Total assets Liabilities and Stockholders Equity Liabilities: Current liabilities Sonds payable, 125 Total liabilities Stockholders equity Common stock, 5 20 par Ratained earnings Total stockholders' equity Total liabilities and stockholders equity 1.76,000 105,000 945,000 22,000 1,168,000 1,501.000 $3,071,000 $ 810,000 700,000 1.510,000 710,000 851,000 1,561,800 $3,071,800 Sabin Electronics Comparative Income Statement and Reconciliation This Year 5.100.000 $ 170,000 20,000 320,000 $15,000 24,000 1,149,000 1,350,000 $2,490,000 $450,000 700,000 1,150,000 710,000 639,000 1,349,000 $2,400,000 Last Year $4,410,000 es Total liabilities and stockholders equity Sabin Electronics Comparative Income Statement and Reconciliation Sales This Year $5,100,000 Last Year $4,410,000 Cost of goods sold 3.895,000 3,470,000 Gross margin 1,205,000 940,000 Selling and administrative expenses 657,000 $52,000 Net operating income Interest expense 548,000 385,000 84,000 $4,000 464,000 304,000 Net income before taxes Income taxes (30%) Net Income 139,200 91,200 324,800 212,800 Common dividends Net income retained 112,000 91,000 212,000 121,800 Beginning retained earnings 639,000 517,200 Ending retained earnings 5851,000 $639,000 During the past year, the company introduced several new product lines and raised the selling prices on a number of old product lines new in order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several territories. Sales terms are 2/10, n/30. All sales are on account Assume Paul Sabin has asked you to assess his company's profitability and stock market performance Required: 1. You decide first to assess the company's stock market performance. For both this year and last year, compute The earnings per share. There has been no change in common stock over the last two years. a. b. The dividend yield ratio. The company's stock is currently selling for $50 per share, last year it sold for $46 per share $3,071,800 $2,499,000 -49 nts effook inferenc Required 1 Required 2 You decide first to assess the company's stock market performance. For both this year and last year, compute a. The earnings per share. There has been no change in common stock over the last two years. (Round your answers to 2 decimal places.) b. The dividend yield ratio. The company's stock is currently selling for $50 per share; last year it sold for $46 per share. (Do not round intermediate calculations. Round your percentage answers to 1 decimal place.) c. The dividend payout ratio. (Do not round intermediate calculations. Round your percentage answers to 1 decimal place] d. The price-earings ratio. (Assume that the industry norm for the price-earings ratio is 10.) (Do not round intermediate calculations. Round your answers to 2 decimal places) e. The book value per share of common stock. (Round your answers to 2 decimal places) Show less This Year Last Year a Earnings per shane b. Dividend yield ratio c. Dividend payout ratio d. Price-eamings ratio e. Book value per share Required 2 > % % % Required 1 7 148 points QUICK Chunkby ware Required 1 Required 2 You decide next to assess the company's profitability. Compute the following for both this year and last year: a. The gross margin percentage. (Round your percentage answers to 1 decimal place.) b. The net profit margin percentage. (Round your percentage answers to 1 decimal place) c. The return on total assets. (Total assets at the beginning of last year were $2,350,000.) (Round your percentage answers to 1 decimal place.) d. The return on equity. (Stockholders equity at the beginning of last year was $1.339,000.) (Round your percentage answers to 1 decimal place) e. Is the company's financial leverage positive or negative? Show less & This Year Last Year a Gross margin percentage b. Not profit margin percentage c. Retum on total assets d. Return on equity e Financial Leverage % %