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P13-7 (Algo) Analyzing Financial Statements Using Ratios LO 13-4, 13-6, 13-8 The comparative financial statements...

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P13-7 (Algo) Analyzing Financial Statements Using Ratios LO 13-4, 13-6, 13-8 The comparative financial statements for Prince Company are below: Year 2 Year 1 $218,000 119,000 99,000 58,800 40,200 10,800 $ 29,400 $174,000 102,800 71,200 54,400 16,800 5,400 $ 11,400 Income statement: Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance sheet: Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (10% interest) Common stock ($5 par value, 6,560 shares outstanding) Retained earnings Total liabilities and stockholders' equity $ 6,800 15,400 42,800 49,200 $114,200 $ 17,400 46,400 32,800 17,600 $114,200 $ 8,400 19,400 35,400 40, 800 $104,000 $ 18,400 46,400 32,800 6,400 $104,000 Assume that the stock price per share is $42 and that dividends the amount of $10.50 per share were paid during Year 2. Compute the following ratios: (Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Earnings per share Current ratio Quick ratio Cash ratio Price/earnings ratio Dividend yield ratio %

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