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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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