Maynard Company's Balance Sheet and Income Statement Are Provided Below

Question 170

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Maynard Company's balance sheet and income statement are provided below:
 Maynard Company's balance sheet and income statement are provided below:     \begin{array}{c} \text {Maynard Company}\\  \text { Income Statement}\\ \text {Years Ended December 31,}\\ \begin{array}{lrr} &\text {Year 2}&\text {Year 1}\\ \text { Sales } & \$ 549,000 & \$ 468,150 \\ \text { Less cost of goods sold } & 360,000 & 289,500 \\ \text { Gross margin } &189,000& 178,650 \\ \text { Less operating expenses } & 86,500 & 55,450 \\ \text { Income before taxes } & 102,500 & 123,200 \\ \text { Income taxes } &18,500 &16,600\\ \text { Net income } & \$84,000 & \$ 106,600 \end{array}\end{array}  The company paid cash dividends of $2.00 per share during Year 2. On December 31, Year 2, the stock was listed on the stock exchange at a price of $78.25 per share. Required: Compute the following ratios for Year 2:Accounts receivable turnoverAverage days to collect receivablesInventory turnoverAverage days to sell inventoryDebt to assets ratioDebt to equity ratioNet marginAsset turnoverReturn on investmentDividend yield Round your answers to one decimal place. Maynard Company Income StatementYears Ended December 31,Year 2Year 1 Sales $549,000$468,150 Less cost of goods sold 360,000289,500 Gross margin 189,000178,650 Less operating expenses 86,50055,450 Income before taxes 102,500123,200 Income taxes 18,50016,600 Net income $84,000$106,600\begin{array}{c}\text {Maynard Company}\\ \text { Income Statement}\\\text {Years Ended December 31,}\\\begin{array}{lrr}&\text {Year 2}&\text {Year 1}\\\text { Sales } & \$ 549,000 & \$ 468,150 \\\text { Less cost of goods sold } & 360,000 & 289,500 \\\text { Gross margin } &189,000& 178,650 \\\text { Less operating expenses } & 86,500 & 55,450 \\\text { Income before taxes } & 102,500 & 123,200 \\\text { Income taxes } &18,500 &16,600\\\text { Net income } & \$84,000 & \$ 106,600\end{array}\end{array} The company paid cash dividends of $2.00 per share during Year 2. On December 31, Year 2, the stock was listed on the stock exchange at a price of $78.25 per share.
Required:
Compute the following ratios for Year 2:Accounts receivable turnoverAverage days to collect receivablesInventory turnoverAverage days to sell inventoryDebt to assets ratioDebt to equity ratioNet marginAsset turnoverReturn on investmentDividend yield
Round your answers to one decimal place.

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