Question
Markus Companys common stock sold for $1.50 per share at the end of this year. The company paid a common stock dividend of $0.39 per
Markus Companys common stock sold for $1.50 per share at the end of this year. The company paid a common stock dividend of $0.39 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance | Beginning Balance | |||
Cash | $ | 24,500 | $ | 40,800 |
Accounts receivable | $ | 42,000 | $ | 38,800 |
Inventory | $ | 42,400 | $ | 42,000 |
Current assets | $ | 108,900 | $ | 121,600 |
Total assets | $ | 302,000 | $ | 242,800 |
Current liabilities | $ | 46,500 | $ | 31,500 |
Total liabilities | $ | 92,000 | $ | 82,800 |
Common stock, $1 par value | $ | 107,000 | $ | 107,000 |
Total stockholders equity | $ | 210,000 | $ | 160,000 |
Total liabilities and stockholders equity | $ | 302,000 | $ | 242,800 |
This Year | ||
Sales (all on account) | $ | 480,000 |
Cost of goods sold | $ | 278,400 |
Gross margin | $ | 201,600 |
Net operating income | $ | 32,500 |
Interest expense | $ | 2,000 |
Net income | $ | 21,350 |
1-1. What is the acid-test ratio at the end of this year?
1-2. What is the accounts receivable turnover and the average collection period?
1-3. What is the inventory turnover and the average sale period?
1-4. What is the companys operating cycle?
1-5. What is the total asset turnover?
1-6. What is the times interest earned ratio?
2. What is the debt-to-equity ratio at the end of this year?
3. What is the equity multiplier?
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