Financial Statements for Praven Company Appear Below

question 28

Essay

Financial statements for Praven Company appear below:

Dividends during Year 2 totaled $89 thousand, of which $18 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $130.
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.
h. Working capital.
i. Current ratio.
j. Acid-test ratio.
k. Accounts receivable turnover.
l. Average collection period.
m. Inventory turnover.
n. Average sale period.
o. Times interest earned.
p. Debt-to-equity ratio.

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Definitions:

Annual Distribution

The process or action of dividing and dispersing something, such as earnings or products, to designated recipients once per year.

Partnership Profits

The net earnings distributed among partners in a business partnership according to the agreed-upon terms.

Total Distribution

The total amount of income distributed to investors, including dividends and other payouts, from an investment over a specific period.

Certified General Accountant

A professional designation for accountants that signifies expertise in financial accounting and strategic management.