Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information The Foundational 15 (Algo) (LO14-2, LO14-3, LO14.4, LO14-5, LO14-6) [The following information applies to the questions displayed below) Markus Company's common stock sold

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information The Foundational 15 (Algo) (LO14-2, LO14-3, LO14.4, LO14-5, LO14-6) [The following information applies to the questions displayed below) Markus Company's common stock sold for $3.50 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: Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Ending Balance $ 35,000 $ 70,000 $ 60, 700 $ 165,700 $ 557,000 $ 67,500 $152,000 $ 133,000 $ 405,000 $ 557,000 Beginning Balance $ 34,000 $ 55,000 $ 70,000 $ 159,000 $ 586,800 $ 55,500 $ 136,800 $ 133,000 $ 450,000 $ 586,800 Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net Income This Year $ 825,000 $ 478,500 $ 346,500 $ 194,250 $ 10,500 $ 128,625 Foundational 14-5 (Algo) 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 % Foundational 14.6 (Algo) 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 Foundational 14-7 (Algo) 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.) Working capital Current ratio Foundational 14-8 (Algo) 8. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.) Acid-test ratio

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

Comparative International Accounting

Authors: Christopher Nobes, R. H. Parker

6th Edition

0273646028, 978-0273646020

More Books

Students also viewed these Accounting questions