Question
Markus Companys common stock sold for $4.25 per share at the end of this year. The company paid a common stock dividend of $0.68 per
Markus Companys common stock sold for $4.25 per share at the end of this year. The company paid a common stock dividend of $0.68 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance | Beginning Balance | |
---|---|---|
Cash | $ 43,000 | $ 38,000 |
Accounts receivable | $ 80,000 | $ 60,000 |
Inventory | $ 66,400 | $ 80,000 |
Current assets | $ 189,400 | $ 178,000 |
Total assets | $ 663,000 | $ 710,200 |
Current liabilities | $ 75,000 | $ 69,000 |
Total liabilities | $ 178,000 | $ 160,200 |
Common stock, $1 par value | $ 146,000 | $ 146,000 |
Total stockholders equity | $ 485,000 | $ 550,000 |
Total liabilities and stockholders equity | $ 663,000 | $ 710,200 |
This Year | |
---|---|
Sales (all on account) | $ 930,000 |
Cost of goods sold | $ 539,400 |
Gross margin | $ 390,600 |
Net operating income | $ 240,625 |
Interest expense | $ 12,500 |
Net income | $ 159,688 |
5. What is the return on equity? (Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%.)
7. What is the amount of working capital and the current ratio at the end of this year?
14. What is the debt-to-equity ratio at the end of this year?
15. What is the equity multiplier?
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