Question
Markus Companys common stock sold for $5.75 per share at the end of this year. The company paid a common stock dividend of $0.69 per
Markus Companys common stock sold for $5.75 per share at the end of this year. The company paid a common stock dividend of $0.69 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance | Beginning Balance | |
---|---|---|
Cash | $ 51,000 | $ 46,000 |
Accounts receivable | $ 98,000 | $ 70,000 |
Inventory | $ 77,800 | $ 98,000 |
Current assets | $ 226,800 | $ 214,000 |
Total assets | $ 868,000 | $ 956,200 |
Current liabilities | $ 90,000 | $ 96,000 |
Total liabilities | $ 218,000 | $ 196,200 |
Common stock, $1 par value | $ 172,000 | $ 172,000 |
Total stockholders equity | $ 650,000 | $ 760,000 |
Total liabilities and stockholders equity | $ 868,000 | $ 956,200 |
This Year | |
---|---|
Sales (all on account) | $ 1,160,000 |
Cost of goods sold | $ 672,800 |
Gross margin | $ 487,200 |
Net operating income | $ 352,750 |
Interest expense | $ 17,000 |
Net income | $ 235,025 |
Foundational 14-4 (Algo)
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%)
8. What is the acid-test ratio at the end of this year?
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? (Use 365 days in a year. Round your intermediate and final answer 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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