Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Foundational 1 5 ( Algo ) [ LO 1 6 - 2 , LO 1 6 - 3 , LO 1 6 - 4

The Foundational 15(Algo)[LO16-2, LO16-3, LO16-4, LO16-5, LO16-6]
Markus Companys common stock sold for $5.75 per share at the end of this year. The company paid a common stock dividend of $0.69 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance Beginning Balance
Cash $ 51,000 $ 46,000
Accounts receivable $ 98,000 $ 70,000
Inventory $ 77,800 $ 98,000
Current assets $ 226,800 $ 214,000
Total assets $ 868,000 $ 956,200
Current liabilities $ 90,000 $ 96,000
Total liabilities $ 218,000 $ 196,200
Common stock, $1 par value $ 172,000 $ 172,000
Total stockholders equity $ 650,000 $ 760,000
Total liabilities and stockholders equity $ 868,000 $ 956,200
This Year
Sales (all on account) $ 1,160,000
Cost of goods sold $ 672,800
Gross margin $ 487,200
Net operating income $ 352,750
Interest expense $ 17,000
Net income $ 235,025
Foundational 16-4(Algo)
4. What is the return on total assets (assuming a 30% tax rate)?
Note: Round percentage answer to 1 decimal place. i.e.,0.123 should be considered as 12.3%
(Note 25.8 and 25.7 are WRONG) pls show all work
I did (956,200+868,000)/2=912,100
then $ 235,025/ $912100=0.2576 or 25.76

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_2

Step: 3

blur-text-image_3

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

Financial Accounting

Authors: Alan Melville

2nd Edition

0273634399, 978-0273634393

More Books

Students also viewed these Accounting questions

Question

What styles do they use?

Answered: 1 week ago

Question

create a semiotic sign system to communicate an idea.

Answered: 1 week ago

Question

apply research strategies to writing.

Answered: 1 week ago