Jack Corporation has provided the following financial data (in thousands of dollars):

Year 2 Year 1
Total assets............................................................. $1,520 $1,490
Stockholders’ equity:
Preferred stock, $100 par value, 5%................... $200 $200
Common stock, $2 par value.............................. $400 $400
Additional paid-in capital–common stock.......... $160 $160
Retained earnings................................................ $380 $320

Net income for Year 2 was $110 thousand. Interest expense was $21 thousand. The tax
rate was 30%. Dividends on common stock during Year 2 totaled $40 thousand.
Dividends on preferred stock totaled $10 thousand. The market price of common stock at
the end of Year 2 was $9.15 per share.

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.
Espinola Corporation's most recent balance sheet and income statement appear below:

Statement of Financial Position

December 31, Year 2 and Year 1
(in thousands of dollars)
Year 2 Year 1
Assets
Current assets:
Cash................................................................... $   320 $   180
Accounts receivable.......................................... 220 240
Inventory........................................................... 140 130
Prepaid expenses...............................................        20       20
Total current assets............................................... 700 570
Plant and equipment, net......................................      860      920
Total assets........................................................... $1,560 $1,490

Liabilities and Stockholders’ Equity

Current liabilities:
Accounts payable.............................................. $   200 $   170
Accrued liabilities.............................................. 80 80
Notes payable, short term..................................       40       40
Total current liabilities......................................... 320 290
Bonds payable......................................................     210     220
Total liabilities......................................................     530     510
Stockholders’ equity:
Preferred stock, $100 par value, 5%.................. 100 100
Common stock, $1 par value............................. 100 100
Additional paid-in capital–common stock........ 150 150
Retained earnings..............................................      680      630
Total stockholders’ equity....................................  1,030      980
Total liabilities & stockholders’ equity................ $1,560 $1,490
 Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
Sales (all on account)............................................ $1,220
Cost of goods sold................................................     790
Gross margin........................................................ 430
Selling and administrative expense......................     268
Net operating income........................................... 162
Interest expense....................................................       26
Net income before taxes....................................... 136
Income taxes (30%)..............................................       41
Net income............................................................ $    95

Dividends on common stock during Year 2 totaled $40 thousand. Dividends on preferred
stock totaled $5 thousand. The market price of common stock at the end of Year 2 was
$12.87 per share.

Required:

Compute the following for Year 2:

a. Gross margin percentage.
b. Earnings per share (of common stock).
c. Price-earnings ratio.
d. Dividend payout ratio.
e. Dividend yield ratio.
f. Return on total assets.
g. Return on common stockholders' equity.
h. Book value per share.
i. Working capital.
j. Current ratio.
k. Acid-test ratio.
l. Accounts receivable turnover.
m. Average collection period.
n. Inventory turnover.
o. Average sale period.
p. Times interest earned.
q. Debt-to-equity ratio.
The following ratios have been computed for Gilbert Company for 2014.

Return on sales 20%

Times-interest-earned ratio 15
Accounts receivables turnover ratio 5
Acid-test ratio 1.60 : 1
Current ratio 3:1
Debt ratio 26%

Gilbert Company's 2014 financial statements with missing information follow:

GILBERT COMPANY
Comparative Balance Sheet
December 31, 2014
Assets 2014 2013
Cash $ 25,000 $ 35,000
Short-term Investments 15,000 15,000
Accounts receivable (net) ? (6) 60,000
Inventory ? (8) 50,000
Property, plant, and equipment (net) 200,000 150,000
Total assets $ ? (9) $310,000

Liabilities and stockholders' equity

Accounts payable $ ? (7) $ 25,000
Short-term notes payable 35,000 30,000
Bonds payable ? (10) 20,000
Common stock 200,000 200,000
Retained earnings 59,000 35,000
Total liabilities and stockholders' equity $ ? (11) $310,000

GILBERT COMPANY
Income Statement
For the Year Ended December 31, 2014
Net sales $250,000
Cost of goods sold 125,000
Gross profit 125,000
Expenses:
Depreciation expense $ ? (5)
Interest expense 5,000
Selling expenses 10,000
Administrative expenses 15,000
Total expenses ? (4)
Income before income taxes ? (2)
Income tax expense ? (3)
Net income $ ? (1)
Required: Use the above ratios and information from the Gilbert Company financial statements
to fill in the missing information on the financial statements. Follow the sequence indicated.
Show computations that support your answers.