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Markus Companys common stock sold for $2.00 per share at the end of this year. The company paid a common stock dividend of $0.42 per
Markus Companys common stock sold for $2.00 per share at the end of this year. The company paid a common stock dividend of $0.42 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance | Beginning Balance | |||
Cash | $ | 30,500 | $ | 46,000 |
Accounts receivable | $ | 52,000 | $ | 45,000 |
Inventory | $ | 49,300 | $ | 52,000 |
Current assets | $ | 131,800 | $ | 143,000 |
Total assets | $ | 353,000 | $ | 318,200 |
Current liabilities | $ | 52,500 | $ | 37,500 |
Total liabilities | $ | 98,000 | $ | 88,200 |
Common stock, $1 par value | $ | 111,000 | $ | 111,000 |
Total stockholders equity | $ | 255,000 | $ | 230,000 |
Total liabilities and stockholders equity | $ | 353,000 | $ | 318,200 |
This Year | ||
Sales (all on account) | $ | 585,000 |
Cost of goods sold | $ | 339,300 |
Gross margin | $ | 245,700 |
Net operating income | $ | 75,500 |
Interest expense | $ | 4,500 |
Net income | $ | 49,700 |
a.What is the companys operating cycle?
b.What is the total asset turnover?
c. What is the times interest earned ratio?
d. What is the debt-to-equity ratio at the end of this year?
e. What is the equity multiplier?
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