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 price-earnings ratio?
1-2. What is the dividend payout ratio and the dividend yield ratio?
1-3. What is the return on total assets (assuming a 30% tax rate)?
1-4. What is the return on equity?
1-5. What is the book value per share at the end of this year?
1-6. What is the amount of working capital and the current ratio at the end of this year?
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