Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear below. The compan
y did not issue any new common or preferred stock during the year. A total of 500 thousand shares of common stock were outstanding. The interest rate on the bond payable was 10%, the income tax rate was 40%, and the dividend per share of common stock was $0.75. The market value of the company’s common stock at the end of the year was $27. All of the company’s sales are on account.Heritage Antiquing ServicesComparative Balance Sheet(dollars in thousands) This Year Last Year Assets Current assets: Cash $ 1,170 $ 1,320 Accounts receivable, net 10,900 6,700 Inventory 12,800 10,900 Prepaid expenses 660 670 Total current assets 25,530 19,590 Property and equipment: Land 9,600 9,600 Buildings and equipment, net 39,548 39,469 Total property and equipment 49,148 49,069 Total assets $ 74,678 $ 68,659 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 19,300 $ 18,600 Accrued payables 940 700 Notes payable, short term 160 160 Total current liabilities 20,400 19,460 Long-term liabilities: Bonds payable 9,100 9,100 Total liabilities 29,500 28,560 Stockholders' equity: Preferred stock 1,000 1,000 Common stock 500 500 Additional paid-in capital 4,000 4,000 Total paid-in capital 5,500 5,500 Retained earnings 39,678 34,599 Total stockholders' equity 45,178 40,099 Total liabilities and stockholders' equity $ 74,678 $ 68,659 Heritage Antiquing ServicesComparative Income Statement and Reconciliation(dollars in thousands) This Year Last Year Sales $ 70,000 $ 65,000 Cost of goods sold 42,000 40,000 Gross margin 28,000 25,000 Selling and administrative expenses: Selling expenses 11,100 10,300 Administrative expenses 6,800 6,400 Total selling and administrative expenses 17,900 16,700 Net operating income 10,100 8,300 Interest expense 910 910 Net income before taxes 9,190 7,390 Income taxes 3,676 2,956 Net income 5,514 4,434 Dividends to preferred stockholders 60 400 Net income remaining for common stockholders 5,454 4,034 Dividends to common stockholders 375 375 Net income added to retained earnings 5,079 3,659 Retained earnings, beginning of year 34,599 30,940 Retained earnings, end of year $ 39,678 $ 34,599 Required:Compute the following financial ratios for common stockholders for this year:1. Gross margin percentage. (Round your answer to 1 decimal place.) Gross margin percentage %2. Earnings per share of common stock. (Round your answer to 2 decimal places.) Earnings per share $ 3. Price-earnings ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.) Price-earnings ratio times4. Dividend payout ratio. (Round your intermediate calculations to 2 decimal places and final answer to 1 decimal place.) Dividend payout ratio %5. Dividend yield ratio. (Round your answer to 1 decimal place.) Dividend yield ratio %6. Return on total assets. (Round your intermediate calculations to whole numbers and final answer to 1 decimal place.) Return on total assets %7. Return on common stockholders' equity. (Round your intermediate calculations to whole numbers and final answer to 1 decimal place.) Return on common stockholders' equity %8. Book value per share. (Round your answer to 2 decimal places.) Book value per share $
