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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