Markus Companys common stock sold for $6.00 per share at the end of this year....
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Accounting
Markus Companys common stock sold for $6.00 per share at the end of this year. The company paid a common stock dividend of $0.96 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance
Beginning Balance
Cash
$ 54,000
$ 48,200
Accounts receivable
$ 102,000
$ 73,700
Inventory
$ 82,000
$ 102,000
Current assets
$ 238,000
$ 223,900
Total assets
$ 900,000
$ 998,000
Current liabilities
$ 93,000
$ 103,500
Total liabilities
$ 220,000
$ 198,000
Common stock, $1 par value
$ 178,000
$ 178,000
Total stockholders equity
$ 680,000
$ 800,000
Total liabilities and stockholders equity
$ 900,000
$ 998,000
This Year
Sales (all on account)
$ 1,210,000
Cost of goods sold
$ 701,800
Gross margin
$ 508,200
Net operating income
$ 378,000
Interest expense
$ 18,000
Net income
$ 252,000
4. What is the return on total assets (assuming a 30% tax rate)?
What is the return on equity?
6. What is the book value per share at the end of this year
7. What is the amount of working capital and the current ratio at the end of this year?
8. What is the acid-test ratio at the end of this year?
9. What is the accounts receivable turnover and the average collection period?
10. What is the inventory turnover and the average sale period?
11. What is the companys operating cycle?
12. What is the total asset turnover?
13. What is the times interest earned ratio?
14. What is the debt-to-equity ratio at the end of this year?
15. What is the equity multiplier?
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