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29.

Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear below. The company did not issue any new common or preferred stock during the year. A total of 500 thousand shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. The market value of the companys common stock at the end of the year was $27. All of the companys sales are on account.

Heritage Antiquing Services Comparative Balance Sheet (dollars in thousands)
	This Year			Last Year
Assets
Current assets:
Cash	$	1,170		$	1,320
Accounts receivable, net		10,900			6,700
Inventory		12,800			10,900
Prepaid expenses		660			670
Total current assets		25,530			19,590
Property and equipment:
Land		9,600			9,600
Buildings and equipment, net		39,548			39,469
Total property and equipment		49,148			49,069
Total assets	$	74,678		$	68,659
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	19,300		$	18,600
Accrued payables		940			700
Notes payable, short term		160			160
Total current liabilities		20,400			19,460
Long-term liabilities:
Bonds payable		9,100			9,100
Total liabilities		29,500			28,560
Stockholders' equity:
Preferred stock		1,000			1,000
Common stock		500			500
Additional paid-in capital		4,000			4,000
Total paid-in capital		5,500			5,500
Retained earnings		39,678			34,599
Total stockholders' equity		45,178			40,099
Total liabilities and stockholders' equity	$	74,678		$	68,659

Heritage Antiquing Services Comparative Income Statement and Reconciliation (dollars in thousands)
	This Year			Last Year
Sales	$	70,000		$	65,000
Cost of goods sold		42,000			40,000
Gross margin		28,000			25,000
Selling and administrative expenses:
Selling expenses		11,100			10,300
Administrative expenses		6,800			6,400
Total selling and administrative expenses		17,900			16,700
Net operating income		10,100			8,300
Interest expense		910			910
Net income before taxes		9,190			7,390
Income taxes		3,676			2,956
Net income		5,514			4,434
Dividends to preferred stockholders		60			400
Net income remaining for common stockholders		5,454			4,034
Dividends to common stockholders		375			375
Net income added to retained earnings		5,079			3,659
Retained earnings, beginning of year		34,599			30,940
Retained earnings, end of year	$	39,678		$	34,599

Required:

Compute the following financial ratios for common stockholders for this year:

1.	Gross margin percentage. (Round your answer to 1 decimal place.)

Gross margin percentage

%

2.	Earnings per share of common stock. (Round your answer to 2 decimal places.)

Earnings per share

$

3.	Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)

Price-earnings ratio

times

4.	Dividend payout ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.)

Dividend payout ratio

%

5.	Dividend yield ratio. (Round your answer to 1 decimal place.)

Dividend yield ratio

%

6.	Return on total assets. (Round your intermediate calculations to whole numbers and final answer to 1 decimal place.)

Return on total assets

%

7.	Return on common stockholders' equity. (Round your intermediate calculations to whole numbers and final answer to 1 decimal place.)

Return on common stockholders' equity

%

8.	Book value per share. (Round your answer to 2 decimal places.)

Book value per share

$

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