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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

Required:

  1. What is the earnings per share?
  2. What is the price-earnings ratio?
  3. What is the dividend payout ratio and the dividend yield ratio?
  4. What is the return on total assets (assuming a 30% tax rate)?
  5. What is the return on equity?
  6. What is the book value per share at the end of this year?
  7. What is the amount of working capital and the current ratio at the end of this year?
  8. What is the acid-test ratio at the end of this year?
  9. What is the accounts receivable turnover and the average collection period?
  10. What is the inventory turnover and the average sale period?
  11. What is the companys operating cycle?
  12. What is the total asset turnover?
  13. What is the times interest earned ratio?
  14. What is the debt-to-equity ratio at the end of this year?
  15. What is the equity multiplier?

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