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Markus Companys common stock sold for $2.50 per share at the end of this year. The company paid a common stock dividend of $0.40 per
Markus Companys common stock sold for $2.50 per share at the end of this year. The company paid a common stock dividend of $0.40 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance | Beginning Balance | |
---|---|---|
Cash | $ 31,500 | $ 47,800 |
Accounts receivable | $ 56,000 | $ 46,300 |
Inventory | $ 50,800 | $ 56,000 |
Current assets | $ 138,300 | $ 150,100 |
Total assets | $ 417,000 | $ 405,300 |
Current liabilities | $ 57,000 | $ 39,000 |
Total liabilities | $ 117,000 | $ 105,300 |
Common stock, $1 par value | $ 114,000 | $ 114,000 |
Total stockholders equity | $ 300,000 | $ 300,000 |
Total liabilities and stockholders equity | $ 417,000 | $ 405,300 |
This Year | |
---|---|
Sales (all on account) | $ 650,000 |
Cost of goods sold | $ 377,000 |
Gross margin | $ 273,000 |
Net operating income | $ 120,750 |
Interest expense | $ 7,000 |
Net income | $ 79,625 |
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%.)
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