The market price of Pharoah's common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively.
You must compute dividends declared. All declared dividends were paid in cash in the year of declaration.
(a)
Compute the following ratios for 2021 and 2022. (Round Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65. Round payout
ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)
Condensed balance sheet and income statement data for Pharoah Corporation are presented here
Pharoah Corporation Balance Sheets December 31 2022
2021 $16,800
2020 $18,400
Cash
$30,200
Accounts receivable (net) 49,700
Other current assets 0006
Investments 56,000
Property, plant, and equipment (net) 501,000
$727,600
Current liabilities $85,400
45,000
48,300
94,000
70,200
370,400
$596,400
$79,900
85,600
316,000
64,000
44,500
357,600
$532,800
$69,600
49,400
Long-term debt
145,600
Common stock, $10 par
318,000
303,000
Retained earnings
178,600
114,900
110,800
$532,800
$727,600
$596,400
Pharoah Corporation Income Statement
2022
2021
Sales
$741,500
$605,400
Less: Sales returns and allowances
39,400
29,600
Net sales
702,100
575,800
Cost of goods sold
425,800
365,000
Gross profit
276,300
210,800
Operating expenses (including income taxes)
185,027
153,220
Net income
$91,273
$57,580
Additional information:
1.
The market price of Pharoah's common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively
2.
You must compute dividends declared. All declared dividends were paid in cash in the year of declaration.
(a)
Compute the following ratios for 2021 and 2022. (Round Asset turnover and Earnings per share to 2 decimal places, e.g. 1.65. Round payout ratio and debt to assets ratio to 0 decimal places, e.g. 18%. Round all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)
2021
2022
(1) Profit margin
%
%
(2) Gross profit rate
%
%
(3) Asset turnover
times
times
(4) Earnings per share
$
(5) Price-earnings ratio
times
times
(6) Payout ratio
%
%
(7) Debt to assets ratio
%
%