Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

The Foundational 15(Algo)[LO14-2, LO14-3, LO14-4, LO14-5, LO14-6]
Skip to question
[The following information applies to the questions displayed below.]
Markus Companys common stock sold for $2.25 per share at the end of this year. The company paid a common stock dividend of $0.45 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance Beginning Balance
Cash $ 29,000 $ 44,800
Accounts receivable $ 50,000 $ 43,800
Inventory $ 48,100 $ 50,000
Current assets $ 127,100 $ 138,600
Total assets $ 375,000 $ 360,000
Current liabilities $ 51,000 $ 36,000
Total liabilities $ 100,000 $ 90,000
Common stock, $1 par value $ 108,000 $ 108,000
Total stockholders equity $ 275,000 $ 270,000
Total liabilities and stockholders equity $ 375,000 $ 360,000
This Year
Sales (all on account) $ 550,000
Cost of goods sold $ 319,000
Gross margin $ 231,000
Net operating income $ 93,500
Interest expense $ 5,500
Net income $ 61,600
Foundational 14-4(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%
5. What is the return on equity?
Note: Round your answer to the nearest whole percentage place. i.e.,0.1234 should be considered as 12%.
6. What is the book value per share at the end of this year?
Note: Round your answer to 2 decimal places.
7. What are the working capital and current ratio at the end of this year?
Note: Round "Current ratio" to 2 decimal places.
8. What is the acid-test ratio at the end of this year?
Note: Round your answer to 2 decimal places.
9. What are the accounts receivable turnover and the average collection period?
Note: Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.
10. What are the inventory turnover and the average sale period?
Note: Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.
11. What is the companys operating cycle?
Note: Use 365 days in a year. Round your intermediate and final answer to 2 decimal places.
12. What is the total asset turnover?
Note: Round your answer to 2 decimal places.
13. What is the times interest earned ratio?
Note: Round your answer to 2 decimal place.
14. What is the debt-to-equity ratio at the end of this year?
Note: Round your answer to 2 decimal places.
15. What is the equity multiplier?
Note: Round your answer to 2 decimal places.
(please answer all parts to the question)

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

Public Sector Accounting And Auditing In EuropeThe Challenge Of Harmonization

Authors: I. Brusca, E. Caperchione, S. Cohen, F Manes Rossi

3rd Edition

1137461330, 9781137461339

More Books

Students also viewed these Accounting questions

Question

Who is the FFIEC?

Answered: 1 week ago