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 Companys common stock sold for $3.00 per share at the end of this

Required information

[The following information applies to the questions displayed below.]

Markus Companys common stock sold for $3.00 per share at the end of this year. The company paid a common stock dividend of $0.48 per share this year. It also provided the following data excerpts from this years financial statements:

Ending Balance Beginning Balance
Cash $ 31,000 $ 32,200
Accounts receivable $ 64,000 $ 53,700
Inventory $ 59,200 $ 64,000
Current assets $ 154,200 $ 149,900
Total assets $ 490,000 $ 506,000
Current liabilities $ 63,000 $ 49,500
Total liabilities $ 140,000 $ 126,000
Common stock, $1 par value $ 126,000 $ 126,000
Total stockholders equity $ 350,000 $ 380,000
Total liabilities and stockholders equity $ 490,000 $ 506,000

This Year
Sales (all on account) $ 750,000
Cost of goods sold $ 440,000
Gross margin $ 310,000
Net operating income $ 162,000
Interest expense $ 9,000
Net income $ 107,100

A. What is the earnings per share? (Round your answer to 2 decimal places.)

B. What is the price-earnings ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

C. What is the dividend payout ratio and the dividend yield ratio? (Do not round intermediate calculations. Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%.)

D. 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%)

E. What is the accounts receivable turnover and the average collection period?

F. What is the companys operating cycle? (Round your intermediate and final answers to 2 decimal places.)

G. What is the total asset turnover? (Round your answer to 2 decimal places.)

H. What is the debt-to-equity ratio at the end of this year? (Round your answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Statistics For Engineers And Scientists

Authors: William Navidi

4th Edition

73401331, 978-0073401331

Students also viewed these Accounting questions