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	$	75,375
Interest expense	$	4,500
Net income	$	105,450

References

Section BreakFoundational [LO15-2, LO15-3, LO15-4, LO15-5, LO15-6]

1.

value: 0.33 points

Required information

Foundational 15-1

Required:

1.	What is the earnings per share? (Round your answer to 2 decimal places.)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-1Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

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2.

value: 0.33 points

Required information

Foundational 15-2

2.	What is the price-earnings ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-2Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

3.

value: 0.33 points

Required information

Foundational 15-3

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%)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-3Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

4.

value: 0.33 points

Required information

Foundational 15-4

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%)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-4Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

5.

value: 0.33 points

Required information

Foundational 15-5

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%)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-5Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

6.

value: 0.33 points

Required information

Foundational 15-6

6.	What is the book value per share at the end of this year? (Round your answer to 2 decimal places.)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-6Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

7.

value: 0.33 points

Required information

Foundational 15-7

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.)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-7Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

8.

value: 0.33 points

Required information

Foundational 15-8

8.	What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-8Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

9.

value: 0.33 points

Required information

Foundational 15-9

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.)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-9Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

10.

value: 0.33 points

Required information

Foundational 15-10

10.	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.)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-10Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

11.

value: 0.34 points

Required information

Foundational 15-11

11.	What is the companys operating cycle? (Round your intermediate and final answers to 2 decimal places.)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-11Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

12.

value: 0.34 points

Required information

Foundational 15-12

12.	What is the total asset turnover? (Round your answer to 2 decimal places.)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-12Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

13.

value: 0.34 points

Required information

Foundational 15-13

13.	What is the times interest earned ratio? (Round your answer to 1 decimal place.)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-13Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

14.

value: 0.34 points

Required information

Foundational 15-14

14.	What is the debt-to-equity ratio at the end of this year? (Round your answer to 2 decimal places.)

References

eBook & Resources

WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.

Foundational 15-14Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.

Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.

Check my work

15.

value: 0.34 points

Required information

Foundational 15-15

15.	What is the equity multiplier? (Round your answer to 2 decimal places.)