The Foundational 15 (Algo) [LO16-2, LO16-3, LO16-4, LO16-5, LO16-6] Skip to question [The...
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Accounting
The Foundational 15 (Algo) [LO16-2, LO16-3, LO16-4, LO16-5, LO16-6]
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Markus Companys common stock sold for $5.00 per share at the end of this year. The company paid a common stock dividend of $0.80 per share this year. It also provided the following data excerpts from this years financial statements:
Ending Balance
Beginning Balance
Cash
$ 45,000
$ 42,000
Accounts receivable
$ 90,000
$ 65,000
Inventory
$ 72,100
$ 90,000
Current assets
$ 207,100
$ 197,000
Total assets
$ 766,000
$ 836,400
Current liabilities
$ 88,000
$ 82,500
Total liabilities
$ 196,000
$ 176,400
Common stock, $1 par value
$ 159,000
$ 159,000
Total stockholders equity
$ 570,000
$ 660,000
Total liabilities and stockholders equity
$ 766,000
$ 836,400
This Year
Sales (all on account)
$ 1,045,000
Cost of goods sold
$ 606,100
Gross margin
$ 438,900
Net operating income
$ 300,000
Interest expense
$ 15,000
Net income
$ 199,500
Foundational 16-4 (Algo)
4. What is the return on total assets (assuming a 30% tax rate)? (Round percentage answer to 1 decimal place. i.e., 0.123 should be considered as 12.3%)
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