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 $5.50 per share at the end of this year. The company paid a common stock dividend of $0.77 per share this year. It also provided the following data excerpts from this years financial statements:

	Ending Balance	Beginning Balance
Cash	$ 54,500	$ 47,200
Accounts receivable	$ 100,000	$ 71,200
Inventory	$ 79,000	$ 100,000
Current assets	$ 233,500	$ 218,400
Total assets	$ 857,000	$ 938,800
Current liabilities	$ 91,500	$ 100,500
Total liabilities	$ 232,000	$ 208,800
Common stock, $1 par value	$ 171,000	$ 171,000
Total stockholders equity	$ 625,000	$ 730,000
Total liabilities and stockholders equity	$ 857,000	$ 938,800

	This Year
Sales (all on account)	$ 1,195,000
Cost of goods sold	$ 693,100
Gross margin	$ 501,900
Net operating income	$ 338,250
Interest expense	$ 16,500
Net income	$ 225,225

Foundational 14-1 (Algo)

Required:

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

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.)