Question
Markus Companys common stock sold for $4.50 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a
Markus Companys common stock sold for $4.50 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $1.02 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance Beginning Balance Cash $ 40,000 $ 40,200 Accounts receivable $ 84,000 $ 63,700 Inventory $ 70,600 $ 84,000 Current assets $ 194,600 $ 187,900 Total assets $ 699,000 $ 755,600 Current liabilities $ 78,000 $ 76,500 Total liabilities $ 184,000 $ 165,600 Preferred stock $ 48,000 $ 48,000 Common stock, $1 par value $ 104,000 $ 104,000 Total stockholders equity $ 515,000 $ 590,000 Total liabilities and stockholders equity $ 699,000 $ 755,600 This Year Sales (all on account) $ 980,000 Cost of goods sold $ 568,400 Gross margin $ 411,600 Net operating income $ 263,250 Interest expense $ 13,500 Net income $ 155,200 Required:
What is the amount of working capital and the current ratio at the end of this year? (Round your current ratio answer to 2 decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started