Question
a. What is the price-earnings ratio? b. What is the return on total assets (assuming a 30% tax rate)? c. What is the return on
a. What is the price-earnings ratio?
b. What is the return on total assets (assuming a 30% tax rate)?
c. What is the return on equity?
d. What is the book value per share at the end of this year?
e. What is the amount of working capital and the current ratio at the end of this year?
f. What is the acid-test ratio at the end of this year?
g. What is the accounts receivable turnover and the average collection period?
h. What is the inventory turnover and the average sale period?
i. What is the companys operating cycle?
j. What is the total asset turnover?
k. What is the times interest earned ratio?
l. What is the debt-to-equity ratio at the end of this year?
m. What is the equity multiplier?
Markus Company's common stock sold for $4.75 per share at the end of this year. The company paid a common stock dividend of $0.57 per share this year. It also provided the following data excerpts from this year's financial statements: Ending Beginning Balance Balance Cash $ 44,000 $ 43,200 Accounts receivable $ 92,000 $ 66,200 Inventory $ 73,300 $ 92,000 Current assets $ 209,300 $ 201,400 Total assets $ 750,000 $ 809,000 Current liabilities $ 84,000 $ 87,000 Total liabilities $ 210,000 $ 189,000 Common stock, $1 par value $ 158,000 $ 158,000 Total stockholders' equity $ 540,000 $ 620,000 Total liabilities and stockholders' equity $ 750,000 $ 809,000 This Year Sales (all on account) $1,080,000 Cost of goods sold $ 626,400 Gross margin $ 453,600 Net operating income $ 276,500 Interest expense $ 14,000 Net income $ 183,750
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