Essay
Financial statements for Pracht Company appear below: Pracht Company
Statement of Financial Position
December 31, Year 2 and Year 1
(dollars in thousands)
Dividends during Year 2 totaled $62 thousand,of which $15 thousand were preferred dividends.
The market price of a share of common stock on December 31,Year 2 was $160.
Required:
Compute the following for Year 2:
a.Earnings per share of common stock.
b.Price-earnings ratio.
c.Dividend payout ratio.
d.Dividend yield ratio.
e.Return on total assets.
f.Return on common stockholders' equity.
g.Book value per share.
h.Working capital.
i.Current ratio.
j.Acid-test ratio.
k.Accounts receivable turnover.
l.Average collection period.
m.Inventory turnover.
n.Average sale period.
o.Times interest earned.
p.Debt-to-equity ratio.
Correct Answer:

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a.Earnings per share = (Net Income - Pre...View Answer
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