Additional information:1. The market price of Pina’s common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively.2. You must compute dividends paid. All dividends were paid in cash.Compute the following ratios for 2021 and 2022. 2022 2021 Profit margin enter percentages % enter percentages % (Round answers to 1 decimal place, e.g. 1.5%.)Gross profit rate enter percentages % enter percentages % (Round answers to 1 decimal place, e.g. 1.5%.)Asset turnover enter asset turnover in times times enter asset turnover in times times (Round answers to 2 decimal places, e.g. 1.83.)Earnings per share $enter earnings per share in dollars $enter earnings per share in dollars (Round answers to 2 decimal places, e.g. 1.83.)Price-earnings ratio enter price-earnings ratio in times times enter price-earnings ratio in times times (Round answers to 1 decimal place, e.g. 1.5.)Payout ratio enter percentages % enter percentages % (Round answers to 0 decimal places, e.g. 15%.)Debt to assets ratio enter percentages % enter percentages % (Round answers to 0 decimal places, e.g. 15%.) PINA CORPORATIONIncome StatementsFor the Years Ended December 3120222021Sales revenue$747,000$607,000Less: Sales returns and allowances42,00032,000Net sales705,000575,000Cost of goods sold432,000357,000Gross profit273,000218,000Operating expenses (including income taxes)182,000152,000Net income$ 91,000$ 66,000Additional information:1.The market price of Pina's common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively.2.You must compute dividends paid. All dividends were paid in cash. Condensed balance sheet and income statement data for Pina Corporation are presented here.PINA CORPORATIONBalance SheetsDecember 31202220212020Cash$ 32,000$ 22,000$ 20,000Accounts receivable (net)52,00047,00050,000Other current assets97,000102,00071,000Investments62,00077,00052,000Plant and equipment (net)500,000370,000358,000$743,000$618,000$551,000Current liabilities$87,000$ 82,000$ 72,000Long-term debt152,00092,00057,000Common stock, $10 par327.000317,000307,000Retained earnings177,000127,000115,000$743,000$618,000$551,000

Profit margin = Net Income / net sales, Gross profit rate = Gross profit / Net sales, Asset Turnover…

Answered: Compute the following ratios for 2021…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Additional information:

1.		The market price of Pina’s common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively.
2.		You must compute dividends paid. All dividends were paid in cash.

Compute the following ratios for 2021 and 2022.

	2022		2021
Profit margin	enter percentages	%		enter percentages	%	(Round answers to 1 decimal place, e.g. 1.5%.)
Gross profit rate	enter percentages	%		enter percentages	%	(Round answers to 1 decimal place, e.g. 1.5%.)
Asset turnover	enter asset turnover in times	times		enter asset turnover in times	times	(Round answers to 2 decimal places, e.g. 1.83.)
Earnings per share	$enter earnings per share in dollars			$enter earnings per share in dollars		(Round answers to 2 decimal places, e.g. 1.83.)
Price-earnings ratio	enter price-earnings ratio in times	times		enter price-earnings ratio in times	times	(Round answers to 1 decimal place, e.g. 1.5.)
Payout ratio	enter percentages	%		enter percentages	%	(Round answers to 0 decimal places, e.g. 15%.)
Debt to assets ratio	enter percentages	%		enter percentages	%	(Round answers to 0 decimal places, e.g. 15%.)

PINA CORPORATION
Income Statements
For the Years Ended December 31
2022
2021
Sales revenue
$747,000
$607,000
Less: Sales returns and allowances
42,000
32,000
Net sales
705,000
575,000
Cost of goods sold
432,000
357,000
Gross profit
273,000
218,000
Operating expenses (including income taxes)
182,000
152,000
Net income
$ 91,000
$ 66,000
Additional information:
1.
The market price of Pina's common stock was $7.00, $7.50, and $8.50 for 2020, 2021, and 2022, respectively.
2.
You must compute dividends paid. All dividends were paid in cash.

Condensed balance sheet and income statement data for Pina Corporation are presented here.
PINA CORPORATION
Balance Sheets
December 31
2022
2021
2020
Cash
$ 32,000
$ 22,000
$ 20,000
Accounts receivable (net)
52,000
47,000
50,000
Other current assets
97,000
102,000
71,000
Investments
62,000
77,000
52,000
Plant and equipment (net)
500,000
370,000
358,000
$743,000
$618,000
$551,000
Current liabilities
$87,000
$ 82,000
$ 72,000
Long-term debt
152,000
92,000
57,000
Common stock, $10 par
327.000
317,000
307,000
Retained earnings
177,000
127,000
115,000
$743,000
$618,000
$551,000

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