Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Foundational 15 (LO14-2, L014-3, LO14-4, 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
image text in transcribed
The Foundational 15 (LO14-2, L014-3, LO14-4, 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 $0.55 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 Foundational 14.4 4. What is the return on total assets (assuming a 30% tax rate)? (Round your percentage answer to 1 decimal place (.e., 0.1234 should be entered as 12.3).) Return on total assets % Foundational 14-5 5. What is the return on equity? (Round your answer to the nearest whole percentage place (l.e., 01234 should be entered as 123.) Return on equity 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 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 Foundational 14-15 15. What is the equity multiplier? (Round your answer to 2 decimal places.) Equity multiplier

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions