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Markus Companys common stock sold for $3.25 per share at the end of this year. The company paid a common stock dividend of $0.65 per
Markus Companys common stock sold for $3.25 per share at the end of this year. The company paid a common stock dividend of $0.65 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance | Beginning Balance | |||
Cash | $ | 39,000 | $ | 35,200 |
Accounts receivable | $ | 72,000 | $ | 56,200 |
Inventory | $ | 61,900 | $ | 72,000 |
Current assets | $ | 172,900 | $ | 163,400 |
Total assets | $ | 531,000 | $ | 550,400 |
Current liabilities | $ | 69,000 | $ | 60,000 |
Total liabilities | $ | 156,000 | $ | 140,400 |
Common stock, $1 par value | $ | 132,000 | $ | 132,000 |
Total stockholders equity | $ | 375,000 | $ | 410,000 |
Total liabilities and stockholders equity | $ | 531,000 | $ | 550,400 |
This Year | ||
Sales (all on account) | $ | 850,000 |
Cost of goods sold | $ | 493,000 |
Gross margin | $ | 357,000 |
Net operating income | $ | 173,375 |
Interest expense | $ | 9,500 |
Net income | $ | 114,712 |
13. What is the times interest earned ratio? (Round your answer to 2 decimal place.)
14. What is the debt-to-equity ratio at the end of this year? (Round your answer to 2 decimal places.)
15. What is the equity multiplier? (Round your answer to 2 decimal places.)
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