Markus Company’s common stock sold for $4.75 per share at the end of this year. The company paid a common stock dividend of $0.57 per share this year. It also provided the following data excerpts from this year’s financial statements: Ending BalanceBeginning BalanceCash$ 44,000$ 43,200Accounts receivable$ 92,000$ 66,200Inventory$ 73,300$ 92,000Current assets$ 209,300$ 201,400Total assets$ 750,000$ 809,000Current liabilities$ 84,000$ 87,000Total liabilities$ 210,000$ 189,000Common stock, $1 par value$ 158,000$ 158,000Total stockholders’ equity$ 540,000$ 620,000Total liabilities and stockholders’ equity$ 750,000$ 809,000 This YearSales (all on account)$ 1,080,000Cost of goods sold$ 626,400Gross margin$ 453,600Net operating income$ 276,500Interest expense$ 14,000Net income$ 183,750Foundational 14-4 (Algo)4. What is the return on total assets (assuming a 30% tax rate)?

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Description: Markus Company’s common stock sold for $4.75 per share at the end of this year. The company paid a common stock dividend of $0.57 per share this year. It also provided the following data excerpts from this year’s financial statements: Ending Ba

Return on total assets is a percentage of net income with respect to its investment. It is a…

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Markus Company’s common stock sold for $4.75 per share at the end of this year. The company paid a common stock dividend of $0.57 per share this year. It also provided the following data excerpts from this year’s financial statements:

	Ending Balance	Beginning Balance
Cash	$ 44,000	$ 43,200
Accounts receivable	$ 92,000	$ 66,200
Inventory	$ 73,300	$ 92,000
Current assets	$ 209,300	$ 201,400
Total assets	$ 750,000	$ 809,000
Current liabilities	$ 84,000	$ 87,000
Total liabilities	$ 210,000	$ 189,000
Common stock, $1 par value	$ 158,000	$ 158,000
Total stockholders’ equity	$ 540,000	$ 620,000
Total liabilities and stockholders’ equity	$ 750,000	$ 809,000

	This Year
Sales (all on account)	$ 1,080,000
Cost of goods sold	$ 626,400
Gross margin	$ 453,600
Net operating income	$ 276,500
Interest expense	$ 14,000
Net income	$ 183,750

Foundational 14-4 (Algo)

4. What is the return on total assets (assuming a 30% tax rate)?

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