Markus Company's common stock sold for $5.25 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $1.24 per share this year. It also provided the following data excerpts from this year's financial statements Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Preferred stock Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $1,095,000 $ 635,100 $ 459,900 $ 313,875 Acid-test ratio $ 5 15,500 186,800 Ending Balance Beginning Balance 49,000 92,000 $ $ 44,200 $ 68,700 $ 76,300 92,000 $ 217,300 $801,000 $ 85,500 $ 206,000 $ 51,000 114,000 $ $ 204,900 $ 875,400 $ 90,000 $ 185,400 $ 51,000 $ $ 114,000 $ 595,000 $ 690,000 $801,000 $ 875,400 Required: What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.)

Markus Company's common stock sold for $5.25 per share at the end of this year. The company paid preferred stock dividends totaling $4,400 and a common stock dividend of $1.24 per share this year. It also provided the following data excerpts from this year's financial statements Cash Accounts receivable Inventory Current assets Total assets Current liabilities Total liabilities Preferred stock Common stock, $1 par value Total stockholders' equity Total liabilities and stockholders' equity Sales (all on account) Cost of goods sold Gross margin Net operating income Interest expense Net income This Year $1,095,000 $ 635,100 $ 459,900 $ 313,875 Acid-test ratio $ 5 15,500 186,800 Ending Balance Beginning Balance 49,000 92,000 $ $ 44,200 $ 68,700 $ 76,300 92,000 $ 217,300 $801,000 $ 85,500 $ 206,000 $ 51,000 114,000 $ $ 204,900 $ 875,400 $ 90,000 $ 185,400 $ 51,000 $ $ 114,000 $ 595,000 $ 690,000 $801,000 $ 875,400 Required: What is the acid-test ratio at the end of this year? (Round your answer to 2 decimal places.)

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 55E: Rebert Inc. showed the following balances for last year: Reberts net income for last year was...

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