Question
e condensed financial statements of Marks Company for the years 2017-2018 are presented below: Marks Company Comparative Balance Sheets As of December 31, 2017 and
e condensed financial statements of Marks Company for the years 2017-2018 are presented below:
Marks Company
Comparative Balance Sheets
As of December 31, 2017 and 201820182017Cash$398,000$155,000Accounts receivable (net)372,000305,000Inventories375,000342,000Plant and equipment1,821,0001,119,000Accumulated depreciation(263,000)(195,000)$2,703,000$1,726,000Accounts payable$342,000$162,000Dividends payable-0-42,000Bonds payable401,000-0-Common stock ($10 par)1,520,0001,240,000Retained earnings440,000282,000$2,703,000$1,726,000
Additional data:Market value of stock at 12/31/18 is $80per share.Marks sold35,000shares of common stock at par on July 1, 2018.
Marks Company
Condensed Income Statement
For the Year Ended December 31, 2018Sales revenue$2,401,000Cost of goods sold1,648,000Gross profit753,000Administrative and selling expenses503,000Net income$250,000
Compute the following financial ratios by placing the proper amounts for numerators and denominators.(Round per unit answers to 2 decimal places, e.g. 52.75.)
(a)Current ratio at 12/31/18$$
(b)Acid test ratio at 12/31/18$$
(c)Accounts receivable turnover in 2018$$
(d)Inventory turnover in 2018$$
(e)Profit margin on sales in 2018$$
(f)Earnings per share in 2018$
(g)Return on common stock holders' equity in 2018$$
(h)Price earnings ratio at 12/31/18$$(i)Debt to assets at 12/31/18$$
(j)Book value per share at 12/31/18
how do you figure these?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started