Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Foundational 15 (L014-2, L014-3, L014-4, L014-5, L014-6) (The following information applies to the questions displayed below.) Markus Company's common stock sold for $2.75 per

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The Foundational 15 (L014-2, L014-3, L014-4, L014-5, L014-6) (The following information applies to the questions displayed below.) Markus Company's common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $0/65 per share this year. It also provided the following data excerpts from this year's financial statements: Ending Beginning Balance Balance Cash $ 35,000 $ 30,000 Accounts receivable $ 60,000 $ 50,000 Inventory $ 55,000 $ 60,000 Current assets $ 150,000 $ 140,000 Total assets $ 450,000 $ 460,000 Current liabilities $ 60,000 $ 40,000 Total liabilities $ 130,000 $ 120,000 Common stock, $1 par value $ 120,000 $ 120,000 Total stockholders' equity $ 320,000 $340,000 Total liabilities and stockholders' equity $ 450,000 $ 460,000 Sales (all on account) Cost of goods sold Gross margin Net operating Income Interest expense Net income This Year $ 700,000 $ 400,000 $ 300,000 $ 140,000 $ 8,000 $ 92,400 Required: 1. What is the earnings per share? (Round your answer to 2 decimal places.) Earnings por share 2. What is the price-earnings ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Price Carings ratio Foundational 14-3 3. What is the dividend payout ratio and the dividend yield ratio? (Do not round intermediate calculations. Round your answer to the nearest whole percentage place (.e., 0.1234 should be entered as 12).) Dividend payout ratio Dividend yield ratio Foundational 14.4 4. What is the return on total assets (assuming a 30% tax rate)? (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3). Rolumn on total assets %

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

Using Accounting & Financial InformationAnalyzing, Forecasting, And Decision Making

Authors: Mark S. Bettner

2nd Edition

1947098683, 9781947098688

More Books

Students also viewed these Accounting questions

Question

What is a balanced scorecard? Discuss.

Answered: 1 week ago

Question

Define pay ranges. What is the purpose of establishing pay ranges?

Answered: 1 week ago