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Markus Companys common stock sold for $3.75 per share at the end of this year. The company paid a common stock dividend of $0.60 per

Markus Companys common stock sold for $3.75 per share at the end of this year. The company paid a common stock dividend of $0.60 per share this year. It also provided the following data excerpts from this years financial statements:

Ending Balance Beginning Balance
Cash $ 41,000 $ 36,200
Accounts receivable $ 74,000 $ 58,700
Inventory $ 64,900 $ 74,000
Current assets $ 179,900 $ 168,900
Total assets $ 590,000 $ 624,000
Current liabilities $ 70,500 $ 63,000
Total liabilities $ 160,000 $ 144,000
Common stock, $1 par value $ 139,000 $ 139,000
Total stockholders equity $ 430,000 $ 480,000
Total liabilities and stockholders equity $ 590,000 $ 624,000

This Year
Sales (all on account) $ 865,000
Cost of goods sold $ 501,700
Gross margin $ 363,300
Net operating income $ 206,250
Interest expense $ 11,000
Net income $ 136,675

rev: 05_25_2017_QC_CS-89969

4. What is the return on total assets (assuming a 30% tax rate)? (Round percentage answer to 1 decimal place. i.e., 0.123 should be considered as 12.3%)

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