Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.) Markus Company's common stock sold for $4.50 per share at the end of this

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Required information [The following information applies to the questions displayed below.) Markus Company's common stock sold for $4.50 per share at the end of this year. The company paid a common stock dividend of $0.63 per share this year. It also provided the following data excerpts from this year's financial statements: Ending Beginning Balance Balance Cash $ 40,000 $ 40,200 Accounts receivable $ 84,000 $ 63,700 Inventory $ 70,600 $ 84,000 Current assets $ 194,600 $ 187,900 Total assets $ 699,000 $ 755,600 Current liabilities $ 78,000 $ 76,500 Total liabilities $ 184,000 $ 165,600 Common stock, $1 par value $ 152,000 $ 000 Total stockholders' equity $ 515,000 $590,000 Total liabilities and stockholders' equity $ 699,000 $ 755,600 Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $ 980,000 $ 568,400 $ 411,600 $ 263,250 $ 13,500 $ 174,825 4. What is the return on total assets (assuming a 30% tax rate)? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) Return on total assets % 5. What is the return on equity? (Round your answer to the nearest whole percentage place (i.e., 0.1234 should be entered as 12).) Return on equity % 6. What is the book value per share at the end of this year? (Round your answer to 2 decimal places.) Book value per share 8. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.) Acid-test ratio 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.) Accounts receivable turnover Average collection period days 11. What is the company's operating cycle? (Round your intermediate and final answers to 2 decimal places.) Operating cycle days 15. What is the equity multiplier? (Round your answer to 2 decimal places.) Equity multiplier

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Creating Value in a Dynamic Business Environment

Authors: Ronald Hilton, David Platt

10th edition

78025664, 978-0078025662

More Books

Students also viewed these Accounting questions

Question

4. Did the presenter offer a clear and memorable summary?

Answered: 1 week ago