Markus Company\'s common stock sold for $2.75 per share at the end of this year.
ID: 2595981 • Letter: M
Question
Markus Company's common stock sold for $2.75 per share at the end of this year. The company paid a common stock dividend of $0.55 per share this year. It also provided the following data excerpts from this year's financial statements: Ending Balance Beginning Balance $35,000 $60,000 $55,000 $150,000 $450,000 $60,000 $130,000 $120,000 $320,000 $450,000 $30,000 $50,000 $60,000 $140,000 $460,000 $40,000 $120,000 $120,000 $340,000 $460,000 Cash Total liabilities and stockholders' equity This Year $700,000 $400,000 $300,000 $140,000 $8,000 $92,400 Gross margin . Interest expenseExplanation / Answer
FORMULA
CALCULATION
RESULT
10
INVENTORY TURNOVER
COS/AV STOCK
400000/57500
6.9 TIMES
AVERAGE SALES PERIOD
DEBTORS/SALES
60000X 365/70000
31.2 DAYS
11
OPERATING CYCLE
COS/365
INVENTORY/COSD
400000/365= 1095.8
55000/1095.8=
$50
12
TOTAL ASSET TURNOVER
SALES/ AVERAGE TOTAL ASSETS
700000/450+60/2
1.54 TIMES
13
INTEREST TIMES
PROFIT BEFORE INTEREST/INTEREST
140000/8000
17.5 TIMES
14
DEBT EQUITY RATIO
LOANS/ EQUITY
130000/320000
40%
15
EQUITY MULTIPLIER
TOTAL ASSETS/ EQUITY
450000/320000
1.4 TIMES
FORMULA
CALCULATION
RESULT
10
INVENTORY TURNOVER
COS/AV STOCK
400000/57500
6.9 TIMES
AVERAGE SALES PERIOD
DEBTORS/SALES
60000X 365/70000
31.2 DAYS
11
OPERATING CYCLE
COS/365
INVENTORY/COSD
400000/365= 1095.8
55000/1095.8=
$50
12
TOTAL ASSET TURNOVER
SALES/ AVERAGE TOTAL ASSETS
700000/450+60/2
1.54 TIMES
13
INTEREST TIMES
PROFIT BEFORE INTEREST/INTEREST
140000/8000
17.5 TIMES
14
DEBT EQUITY RATIO
LOANS/ EQUITY
130000/320000
40%
15
EQUITY MULTIPLIER
TOTAL ASSETS/ EQUITY
450000/320000
1.4 TIMES
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