Question
Markus Company's common stock sold for $1.75 per share at the end of this year. The average number of common shares outstanding during the year
Markus Company's common stock sold for $1.75 per share at the end of this year. The average number of common shares outstanding during the year is 105,000. The company also paid a common stock dividend of $0.42 per share this year. It also provided the following data excerpts from this year's financial statements:
Ending Balance | Beginning Balance | |||
Cash | $ | 27,000 | $ | 43,800 |
Accounts receivable | $ | 48,000 | $ | 41,300 |
Inventory | $ | 45,100 | $ | 48,000 |
Total current assets | $ | 120,100 | $ | 133,100 |
Current liabilities | $ | 49,500 | $ | 34,500 |
Total liabilities | $ | 82,000 | $ | 73,800 |
Common shareholders' equity | $ | 105,000 | $ | 105,000 |
Total shareholders' equity | $ | 230,000 | $ | 190,000 |
Total liabilities and common shareholders' equity | $ | 312,000 | $ | 263,800 |
This Year | ||
Sales (all on account) | $ | 580,000 |
Cost of goods sold | $ | 336,400 |
Gross margin | $ | 243,600 |
Operating income | $ | 49,500 |
Interest expense | $ | 3,000 |
Net income | $ | 32,550 |
Required:
1. What is the earnings per share?(Round your answer to 2 decimal places.)
2. What is the price-earnings ratio?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
3. What is the dividend payout ratio and the dividend yield ratio?(Do not round intermediate calculations. Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%
4. What is the return on total assets (assuming a 30% tax rate)?(Round percentage answer to 1 decimal place. i.e., 0.123 should be considered as 12.3%)
5. What is the return on equity?(Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%)
6. What is the book value per share at the end of this year?(Round your answer to 2 decimal places.)
7. What is the amount of working capital and the current ratio at the end of this year?(Round "Current ratio" to 2 decimal places.)
8. What is the acid-test ratio at the end of this year?(Round your answer to 2 decimal places.)
9. 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.)
10. What is the inventory turnover?(Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.)
Step by Step Solution
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Earnings per share EPS Net income Average number of common shares 32550 175 105000 094 rounded to two decimal places Priceearnings ratio PE ratio Stoc...Get Instant Access to Expert-Tailored Solutions
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