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Financial Statements for Praeger Company Appear Below Dividends During Year 2 Totalled $45,000,of Which $10,000 Were Preferred

Question 198

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Financial statements for Praeger Company appear below:
 Financial statements for Praeger Company appear below:       \begin{array}{|l|r|} \hline&\text {Praeger Company}\\ &\text {Income Statemen}\\ &\text {For the Year Ended December 31, Year}\\ &2\\ &\text {(dollars in thousands)}\\ \hline \text { Sales (All on Account) } & \$ 100 \\ \hline \text { Costs of Goods Sold } & \$ 770 \\ \hline \text { Gross Margin } & \$ 330 \\ \hline \text { Operating Expenses } & \$ 130 \\ \hline \text { Net Operating Income } & \$ 200 \\ \hline \text { Interest Expense } & \$ 50 \\ \hline \text { Net Income before Taxes } & \$ 150 \\ \hline \text { Income Taxes }(30 \%) & \$ 45 \\ \hline \text { Net Income } & \$ 105 \\ \hline \end{array}    Dividends during Year 2 totalled $45,000,of which $10,000 were preferred dividends.The market price of a common share on December 31,Year 2 was $30. The preferred shares are convertible to common shares on the basis of 2 common shares for each preferred share. Required: Calculate the following for Year 2: a)Basic earnings per common share. b)Fully diluted earnings per common share. c)Price-earnings ratio (use basic earnings per share). d)Dividend payout ratio (use basic earnings per share). e)Dividend yield ratio. f)Return on total assets. g)Return on common shareholders' equity. h)Book value per share. i)Working capital. j)Current ratio. k)Acid-test (quick)ratio. l.)Accounts receivable turnover. m)Average collection period (age of receivables). n)Inventory turnover. o)Average sale period (turnover in days). p)Times interest earned. q)Debt-to-equity ratio.
Praeger CompanyIncome StatemenFor the Year Ended December 31, Year2(dollars in thousands) Sales (All on Account) $100 Costs of Goods Sold $770 Gross Margin $330 Operating Expenses $130 Net Operating Income $200 Interest Expense $50 Net Income before Taxes $150 Income Taxes (30%)$45 Net Income $105\begin{array}{|l|r|}\hline&\text {Praeger Company}\\&\text {Income Statemen}\\&\text {For the Year Ended December 31, Year}\\&2\\&\text {(dollars in thousands)}\\\hline \text { Sales (All on Account) } & \$ 100 \\\hline \text { Costs of Goods Sold } & \$ 770 \\\hline \text { Gross Margin } & \$ 330 \\\hline \text { Operating Expenses } & \$ 130 \\\hline \text { Net Operating Income } & \$ 200 \\\hline \text { Interest Expense } & \$ 50 \\\hline \text { Net Income before Taxes } & \$ 150 \\\hline \text { Income Taxes }(30 \%) & \$ 45 \\\hline \text { Net Income } & \$ 105 \\\hline\end{array}

Dividends during Year 2 totalled $45,000,of which $10,000 were preferred dividends.The market price of a common share on December 31,Year 2 was $30.
The preferred shares are convertible to common shares on the basis of 2 common shares for each preferred share.
Required:
Calculate the following for Year 2:
a)Basic earnings per common share.
b)Fully diluted earnings per common share.
c)Price-earnings ratio (use basic earnings per share).
d)Dividend payout ratio (use basic earnings per share).
e)Dividend yield ratio.
f)Return on total assets.
g)Return on common shareholders' equity.
h)Book value per share.
i)Working capital.
j)Current ratio.
k)Acid-test (quick)ratio.
l.)Accounts receivable turnover.
m)Average collection period (age of receivables).
n)Inventory turnover.
o)Average sale period (turnover in days).
p)Times interest earned.
q)Debt-to-equity ratio.

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a)Basic earnings per share = (Net income...

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