Condensed Financial Statements for Pardin Company Are Given Below: Pardin

Essay

Condensed financial statements for Pardin Company are given below: Pardin Company
Statement of Financial Position
As of December 31



The company paid total dividends of $100,000 during the year.At the end of Year 2,the company's common stock was selling for $38 per share.

Required:
On the basis of the information given above,fill in the blanks with the appropriate figures:

Example: The current ratio at the end of Year 2 would be computed by dividing $1,080,000 by $400,000.

a.The acid-test ratio at the end of Year 2 would be computed by dividing _______________ by _________________.
b.The accounts receivable turnover during Year 2 would be computed by dividing _______________ by _________________.
c.The inventory turnover during Year 2 would be computed by dividing _______________ by _________________.
d.The times interest earned for Year 2 would be computed by dividing _______________ by _________________.
e.The earnings per share of common stock for Year 2 would be computed by dividing _______________ by _________________.
f.The return on total assets for Year 2 would be computed by dividing _______________ by _________________.
g.The debt-to-equity ratio at the end of Year 2 would be computed by dividing _______________ by _________________.
h.The dividend yield ratio would be computed by dividing _______________ by _________________.
i.The return on common stockholders' equity for Year 2 would be computed by dividing _______________ by _________________.
j.Whether the common stockholders gained or lost from the use of financial leverage during Year 2 would be determined by comparing the ratio computed in question ___ above to the ratio computed in question above ____.In this case,financial leverage is (positive/negative)___________________.