The following information applies to the questions displayedbelow.]
Markus Company’s common stock sold for $3.25 per share at theend of this year. The company paid a common stock dividend of $0.65per share this year. It also provided the following dataexcerpts from this year’s financialstatements:
| Ending
Balance | Beginning
Balance |
| Cash | $ | 39,000 | $ | 35,200 |
| Accounts receivable | $ | 72,000 | $ | 56,200 |
| Inventory | $ | 61,900 | $ | 72,000 |
| Current assets | $ | 172,900 | $ | 163,400 |
| Total assets | $ | 531,000 | $ | 550,400 |
| Current liabilities | $ | 69,000 | $ | 60,000 |
| Total liabilities | $ | 156,000 | $ | 140,400 |
| Common stock, $1 par value | $ | 132,000 | $ | 132,000 |
| Total stockholders’ equity | $ | 375,000 | $ | 410,000 |
| Total liabilities and stockholders’ equity | $ | 531,000 | $ | 550,400 |
|
| This Year |
| Sales (all on account) | $ | 850,000 |
| Cost of goods sold | $ | 493,000 |
| Gross margin | $ | 357,000 |
| Net operating income | $ | 173,375 |
| Interest expense | $ | 9,500 |
| Net income | $ | 114,712 |
|
2. What is the price-earnings ratio? (Do not roundintermediate calculations. Round your answer to 2 decimalplaces.)
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).)
6. What is the book value per share at the end of this year?(Round your answer to 2 decimalplaces.)
8. What is the acid-test ratio at the end of this year?(Round your answer to 2 decimal places.)
