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Markus Company's 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

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Markus Company's 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 year's 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 abilities and stockholders' equity $ 450,000 $ 460,000 Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net Income This Year $ 700,000 $ 400,000 $ 300,000 $ 140,000 $ 8,000 $ 92,400 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 Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net Income This Year $ 700,000 $ 400,000 $ 300,000 $ 140,000 $ 8,000 $ 92,400 7.50 - Foundational 14-4 4. What is the return on total assets (assuming a 30% tax rate)? (Round your percentage answer to 1 decimal place (le, 0.1234 should be entered as 12.03.) Ratum on Intl assets 5 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 $ 460,000 739 Sales (all on account) Cost of goods sold Gross margin Net operating Income Interest expense Net Income This Year $ 700,000 $ 400,000 $ 300,000 $ 140,000 $ 8,000 $ 92,400 Foundational 14-5 5. What is the return on equity? (Round your answer to the nearest whole percentage place (le, 0.1234 should be entered as 12).) Rotum nully 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 Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $700,000 $ 400,000 $ 300,000 $ 140,000 $ 8,000 $ 92,400 Foundational 14.9 9. 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.) Accounts receivable turnover Average collection period days 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 $ 92,400 150 Foundational 14-10 10. 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.) Inventory turnover Average sale period days 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 liabilitles 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 Foundational 14-11 11. What is the company's operating cycle? (Round your intermediate and final answer to 2 decimal places.) Operating syde days 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 Sales (all on account) Cost of goods sold Gross margin Net operating Income Interest expense Net income This Year $ 700,000 $ 400,000 $ 300,000 $ 140,000 $ 8,000 $ 92,400 Foundational 14-15 15. What is the equity multiplier? (Round your answer to 2 decimal places.) Equity multiplier

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