Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Markus Company's common stock sold for $5.50 per share at the end of this year. The company pald a common stock dividend of $0.77 per

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Markus Company's common stock sold for $5.50 per share at the end of this year. The company pald a common stock dividend of $0.77 per share this year. It also provided the following data excerpts from this year's financial statements: Ending Beginning Balance Balance Cash $ 54,500 $ 47,200 Accounts receivable $ 100,000 $ 71,200 Inventory $ 79,000 $ 100,000 Current assets $ 233,50b $ 218,400 Total assets $ 857,000 $ 938,800 Current liabilities $ 91,500 $ 100,500 Total liabilities $ 232.000 $ 208,800 Common stock, $1 par value $ 171,000 $ 171,000 Total stockholders' equity $ 625.000 $ 730,000 Total liabilities and stockholders' equity $ 857,000 $938,800 Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $1,195.000 $ 693.100 $ 501.900 $ 338,250 $ 16,500 $ 225,225 1. What is the earnings per share? (Round your answer to 2 decimal places.) Earnings per share 2. What is the price-earnings ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price-earnings ratio 5. What is the return on equity? (Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12).) Return on equity % 7. What is the amount of working capital and the current ratio at the end of this year? (Round "Current ratio" to 2 decimal places.) Working capital Current ratio 9. What is the accounts receivable turnover and the average collection period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.) Accounts receivable turnover Average collection period days 10. What is the inventory turnover and the average sale period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.) Inventory turnover Average sale period days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting IFRS Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

2nd Edition

1118443969, 978-1118443965

More Books

Students also viewed these Accounting questions

Question

When might refinancing a mortgage be advisable?

Answered: 1 week ago

Question

2 What are the psychological stages of coping with change?

Answered: 1 week ago

Question

6 Why is change considered a central aspect of HRM practice?

Answered: 1 week ago