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 |
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%)
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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