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 Balance | Beginning 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 |
Required:
- What is the earnings per share?
- What is the price-earnings ratio?
- What is the dividend payout ratio and the dividend yield ratio?
- What is the return on total assets (assuming a 30% tax rate)?
- What is the return on equity?
- What is the book value per share at the end of this year?
- What is the amount of working capital and the current ratio at the end of this year?
- What is the acid-test ratio at the end of this year?
- What is the accounts receivable turnover and the average collection period?
- What is the inventory turnover and the average sale period?
- What is the companys operating cycle?
- What is the total asset turnover?
- What is the times interest earned ratio?
- What is the debt-to-equity ratio at the end of this year?
- What is the equity multiplier?
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