The Foundational 15 [LO15-2, LO15-3, LO15-4, LO15-5, LO15-6]

[The following information applies to the questions displayed below.]

Markus Companys common stock sold for $6.50 per share at the end of this year. The company paid a common stock dividend of $0.91 per share this year. It also provided the following data excerpts from this years financial statements:

	Ending Balance		Beginning Balance
Cash	$	57,500	$	50,000
Accounts receivable	$	108,000	$	75,000
Inventory	$	83,500	$	108,000
Current assets	$	249,000	$	233,000
Total assets	$	975,000	$	1,086,000
Current liabilities	$	97,500	$	109,500
Total liabilities	$	240,000	$	216,000
Common stock, $1 par value	$	185,000	$	185,000
Total stockholders equity	$	735,000	$	870,000
Total liabilities and stockholders equity	$	975,000	$	1,086,000

	This Year
Sales (all on account)	$	1,275,000
Cost of goods sold	$	739,500
Gross margin	$	535,500
Net operating income	$	419,250
Interest expense	$	19,500
Net income	$	279,825

rev: 05_25_2017_QC_CS-89969

Foundational 15-2

2. What is the price-earnings ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)