[The following information applies to the questionsdisplayed below.]
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 |
|
9. What is the accounts receivable turnover and the averagecollection period? (Use 365 days in a year. Round yourintermediate and final answers to 2 decimal places.)
10. What is the inventory turnover and the average sale period?(Use 365 days in a year. Round your intermediate and finalanswers to 2 decimal places.)
11. What is the company’s operating cycle? (Round yourintermediate and final answers to 2 decimalplaces.)
12. What is the total asset turnover? (Round your answerto 2 decimalplaces.)
