Panther Printing declared and paid a cash dividend of $6,900 in the current year. Its comparative financial statements,

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Panther Printing Declared And Paid A Cash Dividend Of 6 900 In The Current Year Its Comparative Financial Statements 1 (81.74 KiB) Viewed 86 times

Panther Printing declared and paid a cash dividend of $6,900 in the current year. Its comparative financial statements, prepared at December 31, reported the following summarized Information: Current Year Previous Year $ 125,00 58,000 67,00 39,800 4,300 23,700 7,110 $ 111, eee 54, eee 57, eee 35,400 4,300 17,380 5,190 $ 16,590 $ 12,112 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Interest Expense Income before Income Tax Expense Income Tax Expense (30%) Net Income Balance Sheet Cash Accounts Receivable, Net Inventory Property and Equipment, Net Total Assets Accounts Payable Income Tax Payable Notes Payable (long-term) Total Liabilities Common Stock (par $10) Retained Earnings Total Liabilities and Stockholders' Equity $ 73,415 20,000 28,00 98,000 $ 219,415 $ 45,000 1,975 43,00 89,975 91,800 38,540 $ 219,415 $ 35,000 15, eee 41,000 108,000 $ 199, eee $ 34,700 650 43, eee 78,350 91,800 28,850 $ 199, eee Required: 1. Compute the gross profit percentage in the current and previous years. Are the current-year results better, or worse, than those for the previous year? 2. Compute the net profit margin for the current and previous years. Are the current-year results better, or worse than those for the previous year? 3. Compute the earnings per share for the current and previous years. Are the current-year results better, or worse than those for the previous year? 4. Stockholders' equity totaled $103,000 at the beginning of the previous year. Compute the return on equity (ROE) ratlos for the current and previous years. Are the current-year results better, or worse, than those for the previous year? 5. Net property and equipment totaled $113,000 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. Are the current-year results better, or worse, than those for the previous year? 6. Compute the debt-to-assets ratios for the current and previous years. Is debt providing financing for a larger or smaller proportion of the company's asset growth? 7. Compute the times Interest earned ratios for the current and previous years. Are the current-year results better, or worse than those for the previous year? 8. After Panther Printing released its current year's financial statements, the company's stock was trading at $21. After the release of its previous year's financial statements, the company's stock price was $18 per share. Compute the P/E ratios for both years. Does It appear that Investors have become more or less) optimistic about Panther's future success?