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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

1. 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%)

2. What is the return on equity? (Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%)

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

4. What is the average collection period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.)

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

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

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

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

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

10. What is the average sale period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.)

Please Answer all the questions.

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