Markus Companys common stock sold for $2.00 per share at the end of this year....
90.2K
Verified Solution
Link Copied!
Question
Accounting
| Markus Companys common stock sold for $2.00 per share at the end of this year. The company paid a common stock dividend of $0.42 per share this year. It also provided the following data excerpts from this years financial statements: |
| Ending Balance | Beginning Balance | |||
| Cash | $ | 30,500 | $ | 46,000 |
| Accounts receivable | $ | 52,000 | $ | 45,000 |
| Inventory | $ | 49,300 | $ | 52,000 |
| Current assets | $ | 131,800 | $ | 143,000 |
| Total assets | $ | 353,000 | $ | 318,200 |
| Current liabilities | $ | 52,500 | $ | 37,500 |
| Total liabilities | $ | 98,000 | $ | 88,200 |
| Common stock, $1 par value | $ | 111,000 | $ | 111,000 |
| Total stockholders equity | $ | 255,000 | $ | 230,000 |
| Total liabilities and stockholders equity | $ | 353,000 | $ | 318,200 |
| This Year | ||
| Sales (all on account) | $ | 585,000 |
| Cost of goods sold | $ | 339,300 |
| Gross margin | $ | 245,700 |
| Net operating income | $ | 75,375 |
| Interest expense | $ | 4,500 |
| Net income | $ | 105,450 |
References
Section BreakFoundational [LO15-2, LO15-3, LO15-4, LO15-5, LO15-6]
1.
value: 0.33 points
Required information
Foundational 15-1
| Required: |
| 1. | What is the earnings per share? (Round your answer to 2 decimal places.) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-1Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
2.
value: 0.33 points
Required information
Foundational 15-2
| 2. | What is the price-earnings ratio? (Do not round intermediate calculations. Round your answer to 2 decimal places.) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-2Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
3.
value: 0.33 points
Required information
Foundational 15-3
| 3. | What is the dividend payout ratio and the dividend yield ratio? (Do not round intermediate calculations. Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-3Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
4.
value: 0.33 points
Required information
Foundational 15-4
| 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%) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-4Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
5.
value: 0.33 points
Required information
Foundational 15-5
| 5. | What is the return on equity? (Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-5Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
6.
value: 0.33 points
Required information
Foundational 15-6
| 6. | What is the book value per share at the end of this year? (Round your answer to 2 decimal places.) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-6Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
7.
value: 0.33 points
Required information
Foundational 15-7
| 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.) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-7Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
8.
value: 0.33 points
Required information
Foundational 15-8
| 8. | What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-8Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
9.
value: 0.33 points
Required information
Foundational 15-9
| 9. | What is the accounts receivable turnover and the average collection period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-9Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
10.
value: 0.33 points
Required information
Foundational 15-10
| 10. | What is the inventory turnover and the average sale period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-10Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
11.
value: 0.34 points
Required information
Foundational 15-11
| 11. | What is the companys operating cycle? (Round your intermediate and final answers to 2 decimal places.) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-11Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
12.
value: 0.34 points
Required information
Foundational 15-12
| 12. | What is the total asset turnover? (Round your answer to 2 decimal places.) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-12Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
13.
value: 0.34 points
Required information
Foundational 15-13
| 13. | What is the times interest earned ratio? (Round your answer to 1 decimal place.) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-13Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
14.
value: 0.34 points
Required information
Foundational 15-14
| 14. | What is the debt-to-equity ratio at the end of this year? (Round your answer to 2 decimal places.) |
References
eBook & Resources
WorksheetLearning Objective: 15-02 Compute and interpret financial ratios that managers use to assess liquidity.Learning Objective: 15-05 Compute and interpret financial ratios that managers use to assess profitability.
Foundational 15-14Learning Objective: 15-03 Compute and interpret financial ratios that managers use for asset management purposes.Learning Objective: 15-06 Compute and interpret financial ratios that managers use to assess market performance.
Difficulty: 2 MediumLearning Objective: 15-04 Compute and interpret financial ratios that managers use for debt management purposes.
Check my work
15.
value: 0.34 points
Required information
Foundational 15-15
| 15. | What is the equity multiplier? (Round your answer to 2 decimal places.) |
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.