Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Markus Company's common stock sold for $2.75 per share at the end of this year. The compan paid a common stock dividend of $0.55 per

image text in transcribed

image text in transcribed

Markus Company's common stock sold for $2.75 per share at the end of this year. The compan 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 Balance Beginning Balance Cash..... . $35,000 $30,000 Accounts receivable... 560.000 $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 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 company's 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Case Studies In Forensic Accounting And Fraud Auditing

Authors: Professor D. Larry Crumbley, Wilson LaGraize, Christopher E. Peters

2nd Edition

0808041932, 978-0808041931

More Books

Students also viewed these Accounting questions