Required information [The following information applies to the questions displayed below.] Markus Company's common stock sold for $2.25 per share at the end of this year. The company paid a common stock dividend of $0.45 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 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 Return on equity This Year $ 550,000 $ 319,000 $ 231,000 $ 93,500 % $ 5,500 $ 61,600 Ending Balance $ 29,000 $ 50,000 $ 48,100 $ 127,100 $375,000 $ 51,000 $ 100,000 $ 108,000 $ 275,000 $ 375,000 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%.) Beginning Balance $ 44,800 $ 43,800 $ 50,000 $ 138,600 $360,000 $ 36,000 $ 90,000 $ 108,000 $ 270,000 $360,000
Required information [The following information applies to the questions displayed below.] Markus Company's common stock sold for $2.25 per share at the end of this year. The company paid a common stock dividend of $0.45 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 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 Return on equity This Year $ 550,000 $ 319,000 $ 231,000 $ 93,500 % $ 5,500 $ 61,600 Ending Balance $ 29,000 $ 50,000 $ 48,100 $ 127,100 $375,000 $ 51,000 $ 100,000 $ 108,000 $ 275,000 $ 375,000 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%.) Beginning Balance $ 44,800 $ 43,800 $ 50,000 $ 138,600 $360,000 $ 36,000 $ 90,000 $ 108,000 $ 270,000 $360,000
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 4PA: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall...
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