Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Markus Company s common stock sold for $ 4 . 5 0 per share at the end of this year. The company paid a common

Markus Companys common stock sold for $4.50 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance Beginning Balance
Cash $ 40,000 $ 40,200
Accounts receivable $ 84,000 $ 63,700
Inventory $ 70,600 $ 84,000
Current assets $ 194,600 $ 187,900
Total assets $ 699,000 $ 755,600
Current liabilities $ 78,000 $ 76,500
Total liabilities $ 184,000 $ 165,600
Common stock, $1 par value $ 152,000 $ 152,000
Total stockholders equity $ 515,000 $ 590,000
Total liabilities and stockholders equity $ 699,000 $ 755,600
This Year
Sales (all on account) $ 980,000
Cost of goods sold $ 568,400
Gross margin $ 411,600
Net operating income $ 263,250
Interest expense $ 13,500
Net income $ 174,8251. What is the amount of working capital and the current ratio at the end of this year? 2.What is the acid-test ratio at the end of this year? 3.What is the accounts receivable turnover and the average collection period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.)4.What is the inventory turnover and the average sale period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.)5.What is the companys operating cycle? (Use 365 days in a year. Round your intermediate and final answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting

Authors: Charles T. Horngren, Walter T. Harrison Jr., M. Suzanne Oliv

9th Edition

130898414, 9780132997379, 978-0130898418, 132997371, 978-0132569309

More Books

Students also viewed these Accounting questions

Question

What are the pros and cons of using social media at work? Discuss.

Answered: 1 week ago