Question
Markus Companys common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $0.55 per
Markus Companys common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $0.55 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Beginning
Balance Balance
Cash | $ | 35,000 | $ | 30,000 |
Accounts receivable | $ | 60,000 | $ | 50,000 |
Inventory | $ | 55,000 | $ | 60,000 |
Current assets | $ | 150,000 | $ | 140,000 |
Total assets | $ | 450,000 | $ | 460,000 |
Current liabilities | $ | 60,000 | $ | 40,000 |
Total liabilities | $ | 130,000 | $ | 120,000 |
Common stock, $1 par value | $ | 120,000 | $ | 120,000 |
Total stockholders equity | $ | 320,000 | $ | 340,000 |
Total liabilities and stockholders equity | $ | 450,000 | $ | 460,000 |
This Year | ||
Sales (all on account) | $ | 700,000 |
Cost of goods sold | $ | 400,000 |
Gross margin | $ | 300,000 |
Net operating income | $ | 140,000 |
Interest expense | $ | 8,000 |
Net income | $ | 92,400 |
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 return on equity? (Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12).)
4. What is the book value per share at the end of this year? (Round your answer to 2 decimal places.)
5. What is the amount of working capital at the end of this year?
6. What is the current ratio at the end of this year? (Round to 2 decimal places.)
7. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.)
8. 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.)
9. 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.)
10. What is the debt-to-equity ratio at the end of this year? (Round your answer to 2 decimal places.)
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