Question
Markus Companys common stock sold for $6.25 per share at the end of this year. The company paid a common stock dividend of $0.75 per
Markus Companys common stock sold for $6.25 per share at the end of this year. The company paid a common stock dividend of $0.75 per share this year. It also provided the following data excerpts from this years financial statements: |
Ending Balance | Beginning Balance | |||
Cash | $ | 59,000 | $ | 51,200 |
Accounts receivable | $ | 110,000 | $ | 76,200 |
Inventory | $ | 84,700 | $ | 110,000 |
Current assets | $ | 253,700 | $ | 237,400 |
Total assets | $ | 959,000 | $ | 1,058,600 |
Current liabilities | $ | 99,000 | $ | 114,000 |
Total liabilities | $ | 254,000 | $ | 228,600 |
Common stock, $1 par value | $ | 184,000 | $ | 184,000 |
Total stockholders equity | $ | 705,000 | $ | 830,000 |
Total liabilities and stockholders equity | $ | 959,000 | $ | 1,058,600 |
This Year | ||
Sales (all on account) | $ | 1,310,000 |
Cost of goods sold | $ | 759,800 |
Gross margin | $ | 550,200 |
Net operating income | $ | 393,125 |
Interest expense | $ | 18,500 |
Net income | $ | 138,000 |
Required: |
1. | What is the earnings per share? (Round your answer to 2 decimal places.) |
|
2. | What is the price-earnings ratio? (Round intermediate and final calculations to two decimal places.) |
3. | What is the dividend payout ratio and the dividend yield ratio? (Round your intermediate and final answers to two decimal places (i.e., 0.1234 should be entered as 12%).) |
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.) |
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