Required information The Foundational 15 [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 $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 $ 152,000 Total stockholders' equity $ 515,000 $590,000 Total liabilities and stockholders' $699,000 $755,600 equity This Year Sales (all on account) $980,000 Cost of goods sold $568,400 Gross margin $ 411,600 Net operating $263,250 income Interest expense $ 13,500 Net income $ 174,825 Total assets Current liabilities Total liabilities Common stock $1 par value Total stockholders' equity Total liabilities and stockholders' equity $699,000 $755,600 $ 78,000 $ 76,500 $184,000 $ 165,600 $152.000 $152.000 $ 515,000 $590,000 $699,000 $755,600 This Year Sales (all on account) $980,000 Cost of goods sold $568,400 Gross margin $ 411,600 Net operating $263.250 income Interest expense $ 13,500 Net income $ 174,825 Foundational 14-7 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 income Interest expense Net income $263,250 $ 13,500 $ 174,825 Foundational 14-8 8. What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.) Acid-test ratio Total assets Current liabilities Total liabilities Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity $699,000 $755,600 $ 78,000 $ 76,500 $ 184,000 $ 165,600 $152,000 $152,000 $ 515,000 $590,000 $699,000 $755,600 This Year Sales (all on account) $980,000 Cost of goods sold $568,400 Gross margin $ 411,600 Net operating $263,250 income Interest expense $ 13,500 Net income $ 174,825 Foundational 14.9 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 Total assets Current liabilities Total liabilities Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity $699,000 $755,600 $ 78,000 $ 76,500 $184,000 $ 165,600 $152,000 $152,000 $ 515,000 $590,000 $699,000 $755,600 This Year Sales (all on account) $980,000 Cost of goods sold $568,400 Gross margin $ 411,600 Net operating $263,250 Income Interest expense $ 13,500 Net income $ 174,825 Foundational 14-10 10. What is the inventory turnover and the average sole period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.) Inventory turnover Average sale period days This Year Sales (all on account) $980,000 Cost of goods sold $568,400 Gross margin $ 411,600 Net operating $263,250 income Interest expense $ 13,500 Net income $ 174,825 Foundational 14-11 11. What is the company's operating cycle? (Round your intermediate and final answers to 2 decimal places.) Operating cycle days
