Question
Markus Companys common stock sold for $5.50 per share at the end of this year. The company paid a common stock dividend of $0.77 per
Markus Companys common stock sold for $5.50 per share at the end of this year. The company paid a common stock dividend of $0.77 per share this year. It also provided the following data excerpts from this years financial statements:
| Ending Balance | Beginning Balance | ||
Cash | $ | 54,500 | $ | 47,200 |
Accounts receivable | $ | 100,000 | $ | 71,200 |
Inventory | $ | 79,000 | $ | 100,000 |
Current assets | $ | 233,500 | $ | 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 |
| This Year | |
Sales (all on account) | $ | 1,195,000 |
Cost of goods sold | $ | 693,100 |
Gross margin | $ | 501,900 |
Net operating income | $ | 338,250 |
Interest expense | $ | 16,500 |
Net income | $ | 225,225 |
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%)
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%.)
6. What is the book value per share at the end of this year? (Round your answer to 2 decimal places.)
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.)
8. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.)
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.)
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.
11. What is the companys operating cycle? (Round your intermediate and final answers to 2 decimal places.)
12. What is the total asset turnover? (Round your answer to 2 decimal places.)
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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