Question
Markus Companys common stock sold for $6.00 per share at the end of this year. The company paid a common stock dividend of $0.96 per
Markus Companys common stock sold for $6.00 per share at the end of this year. The company paid a common stock dividend of $0.96 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance | Beginning Balance | |
---|---|---|
Cash | $ 54,000 | $ 48,200 |
Accounts receivable | $ 102,000 | $ 73,700 |
Inventory | $ 82,000 | $ 102,000 |
Current assets | $ 238,000 | $ 223,900 |
Total assets | $ 900,000 | $ 998,000 |
Current liabilities | $ 93,000 | $ 103,500 |
Total liabilities | $ 220,000 | $ 198,000 |
Common stock, $1 par value | $ 178,000 | $ 178,000 |
Total stockholders equity | $ 680,000 | $ 800,000 |
Total liabilities and stockholders equity | $ 900,000 | $ 998,000 |
This Year | |
---|---|
Sales (all on account) | $ 1,210,000 |
Cost of goods sold | $ 701,800 |
Gross margin | $ 508,200 |
Net operating income | $ 378,000 |
Interest expense | $ 18,000 |
Net income | $ 252,000 |
4. What is the return on total assets (assuming a 30% tax rate)?
What is the return on equity?
6. What is the book value per share at the end of this year
7. What is the amount of working capital and the current ratio at the end of this year?
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?
10. What is the inventory turnover and the average sale period?
11. What is the companys operating cycle?
12. What is the total asset turnover?
13. What is the times interest earned ratio?
14. What is the debt-to-equity ratio at the end of this year?
15. What is the equity multiplier?
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