Answered step by step
Verified Expert Solution
Question
1 Approved Answer
! Required information [The following information applies to the questions displayed below.] Markus Company's common stock sold for $2.50 per share at the end
! Required information [The following information applies to the questions displayed below.] Markus Company's common stock sold for $2.50 per share at the end of this year. The company paid a common stock dividend of $0.40 per share this year. It also provided the following data excerpts from this year's financial statements: Ending Balance Beginning Balance Cash Accounts receivable Inventory Current assets Total assets $ 31,500 $ 47,800 $ 56,000 $ 46,300 $ 50,800 Current liabilities Total liabilities $ 138,300 $ 417,000 $ 57,000 $ 117,000 Common stock, $1 par value Total stockholders' equity $ 114,000 $ 300,000 $ 56,000 $ 150,100 $ 405,300 $ 39,000 $ 105,300 $ 114,000 $ 300,000 Total liabilities and stockholders' equity $ 417,000 $ 405,300 This Year Sales (all on account) $ 650,000 Cost of goods sold $ 377,000 Gross margin $ 273,000 Net operating income $ 120,750 Interest expense $ 7,000 Net income $ 79,625 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%.) Return on equity %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started